How To Profitably Buy A Property In Montenegro

Montenegro is the most promising country on the Adriatic Sea for property investment. It has a growing market, which has already proved its stability; the lowest taxes in Europe and the most favourable immigration policy; affordable prices for houses and flats, amazingly diverse nature and good ecology.

In this material we have collected everything you need to know before the deal: the investment potential of Montenegro, the rights of foreigners, the popular types of property, average prices, financing options, description of the purchase procedure and additional costs.

Why Invest In Montenegro Property

Growing Market

If you explore property options in Montenegro, you will see that it is still significantly cheaper than other popular countries on the Adriatic Sea - Italy and Croatia. This opens up the potential for further growth in prices, and hence the income of investors who invest in the region.

Here is a vivid example: according to official statistics, from 2023 to 2024 new buildings by the sea in Montenegro increased in price by 25.9%. Such a result is unimaginable in an old established market, but in a growing market - as in Montenegro - such upswings are regularly encountered.

It is also important that the growth did not start now, but has been observed since 2006, when Montenegro gained independence. In that time, the country has come a long way - from chaotic development to the creation of chic integrated resorts, the most striking of which is Lustica Bay.

Affordable Residence Permit

Montenegro offers very rare conditions for Europe: buying any property here, regardless of its value, entitles you to a residence permit. This means that this house can become your base in a new country, if you ever decide to move to the sea for permanent residence - in retirement or earlier. Until then, you can spend holidays in Montenegro and rent out the property.

It is also easy to obtain a residence permit on other grounds, such as opening a business in the country or registering as a digital nomad.

Low Taxes

This is important for everyone: it helps investors to increase returns, and buyers of property for living and recreation - to reduce costs.

Taxes in Montenegro are among the lowest in Europe. In Spain, buyers pay an additional 8-10%, in Italy 9-10%, and in the case of buying luxury property - up to 22%.

In Montenegro on the secondary market, the tax on the purchase of real estate is from 3 to 6% of the cadastral price of the object + fixed fees. However, this payment can be easily avoided if you choose a new building from the developer: in this case you pay nothing.

Nature And Ecology

Montenegro is a very comfortable country for a healthy life. The ecology here is excellent, there are no harmful industries. Spectacular and surprisingly diverse landscapes - mountain slopes, sea bays, sandy and pebble beaches, picturesque lakes, relic forests, vineyards, islands, canyons... And all this is close by, it is easy to reach any point in Montenegro.

Other European countries are not far away either - the highways are of high quality, there are several airports on the coast, and ferries to Italy, for example.

Yachts are another popular form of transport - expats often buy their own after moving here. Montenegro has all the infrastructure for this (marinas, yachting schools), and the cost of maintaining a boat is lower than in other European countries.

Can Foreigners Buy Property In Montenegro

The short answer is yes, foreigners can buy apartments and houses in any region of Montenegro. The purchase does not require a residence permit, and the property can be registered on a non-resident in full private ownership.

A small restriction applies only to land transactions. Foreigners are allowed to buy a plot of land up to 5 thousand square metres with an object on it, and undeveloped land can be registered in ownership only if it is included in a detailed urbanisation plan.

And foreigners are actively using their right: over the last four years they have invested* in Montenegrin property €1.5 billion. Thousands of properties, especially on the coast, are already owned by citizens of Russia, Serbia, Turkey, Switzerland, USA... In Lustica Bay, for example, property is owned by guests from 40+ countries.

Property In Montenegro That Foreigners Are Interested In

Property By The Sea

Budva, Kotor and Tivat are the main points of attraction for foreign demand in Montenegro. Property by the sea, especially in modern business and premium class buildings, consistently attracts investors. It is in these regions are located the most promising objects. They are the fastest growing in price and bring the highest rental income.

Here is also the best choice, from small-scale low-rise housing estates to large-scale integrated resorts such as Lustica Bay.

Property In The Mountains

Kolasin and Žabljak are two fast developing ski resorts in Montenegro. Their advantage for buyers is their affordable prices. For the money that would be enough to buy a small flat by the sea, here you can buy a chalet or a villa.

The demand of foreigners for property in the mountains is gradually growing, although to the indicators of the coastal region it is still far away.

Property In The Capital

Another type of liquid asset in Montenegro is apartments in Podgorica. They are in demand among locals who (as in all countries) move to the capital for work. Foreigners also buy them for long-term rent. This brings a stable income, although less if compared to seaside options.

Property prices in Montenegro and financing options

Property in Montenegro is getting more expensive, but average prices are still affordable. Here is the official data on the cost of housing in different regions.

It is important to realise that at these prices typical flats in economy and comfort class housing estates are sold. If you are interested in premium options - in the best locations, with sea views, high-quality finishing, developed infrastructure and professional management, you should be prepared to pay 3-4 times more.

You can reduce costs by buying an object at the initial stage of construction: as the complex is built and the environment develops, the cost will increase. In large-scale projects, the growth is impressive: in 2012, when the Lustica Bay resort was just beginning to be built, a square metre in the Marina Village area closest to the sea sold for €2.8 thousand. Since then, prices have increased 3.5 times.

Another way to reduce the burden is to take advantage of instalments from the developer. Almost all developers offer interest-free payment plans until the end of construction, and some even longer.

5 Steps To Buying Property In Montenegro

Buying property in Montenegro can also be done remotely, without visiting the country. All transactions go through five basic steps.

1. Inspection of the property. Before buying, it is important to carry out a check of the chosen property. Firstly, legal - make sure that the object is registered to the seller and has no encumbrances. Secondly, technical - to assess the condition, including engineering systems and possible hidden defects. If you are buying a flat under construction, you should study information about the developer and his realised projects. Real estate agencies or independent lawyers can help with this stage.
2. Signing the contract. After successful inspection of the object, the parties proceed to the execution of the contract of sale. A preliminary agreement is concluded to fix the terms of the deal and make a deposit (10-20% of the value). This document guarantees that the object will be removed from the sale and assigned to the buyer. The main contract is signed at the notary after the conditions of the preliminary contract are fulfilled. The notary checks all documents and authenticates the signatures of the parties. If the buyer does not speak Serbian, the presence of a court interpreter is mandatory.
3. Transfer of money. Payment for the property is made in accordance with the terms of the contract. In the secondary market, usually 100% of the price of the object is paid immediately, in the primary market - you can pay in instalments. Settlements are usually made in non-cash form to the account of the seller or notary. You can transfer money from an account opened in a bank in any country. It is important to take into account commissions and possible delays in international transfers. We recommend that you discuss your preferred method of payment with the seller in advance and clarify all the details.
4. Payment of taxes. After the transaction is finalised, you need to pay the transfer tax.
5. Registration of ownership. The final stage of any transaction: the notary transfers the sale and purchase agreement to the cadastral office for registration, and the buyer receives a certificate of ownership. This process takes from two to four weeks.

Taxes on the secondary market:

• for properties up to €150k - 3% of the cadastral price;
• from €150k to €500k - fixed amount of €4.5k + 5%;
• from €500 thousand - a fixed amount of €22 thousand + 6%;
• the tax must be paid within 14 days after registration of ownership.

Taxes on the primary market :

• When buying a new property from a developer who is a VAT payer, this tax is not charged.
• New buildings in Montenegro are subject to VAT at the rate of 21%. The buyer does not need to pay anything over the price: this fee is already included in the price of the object, the developer himself will transfer the money to the state. When registering a property with a legal entity, you can request a VAT refund. A lawyer can advise you on how to do this.

Taxes And Other Additional Costs When Buying

Large developers take care of all the costs of property registration: notary fees, translator's fees and even the realtor's fees, if he is involved in the transaction. For example, in the Lustica Bay complex this is the case. Thanks to this, the additional costs of buying a new building are lower than those of a property on the secondary market.

Montenegro has a simple and reliable procedure for concluding transactions, low taxes - both at the stage of purchase and during the maintenance of the object. It is possible to obtain a residence permit, and subsequently and citizenship. In short, property in the country is suitable for any purpose: investment, holiday, relocation.