How To Buy Or Invest In Montenegro Real Estate?

7 July 2024 | General, Investment

Montenegro offers attractive real estate investment opportunities for foreign buyers seeking beachfront or mountain retreats in a scenic European country.

With a growing economy fuelled by tourism along the Adriatic coast and benefits such as no capital gains tax, Montenegro real estate can be a smart place to finance or purchase a second home.

The process of buying real estate in Montenegro involves researching different areas and properties, hiring an estate agent, proving ownership paperwork is in order, and organizing financing if needed.

It’s important to be aware of any legal requirements for foreign buyers, as well as the usual procedures for closing a transaction. Carrying out due diligence on properties, neighborhoods and action plans can help ensure a smooth purchase and satisfactory investment.

For those interested in the Montenegro real estate market, learning the essential steps is key to starting your search for the ideal seaside villa or mountain chalet.

State of real estate market in Montenegro

The real estate market in Montenegro offers a brilliant opportunity for both speculators and buyers looking for an extravagant way of life.

With its emotive coastline and rugged mountainous landscape dotted with medieval towns, Montenegro has become a hot destination among Europe’s elite.

Demand for extravagant estates, hotels for sale, waterfront homes and high-end apartments in picturesque coastal enclaves is growing rapidly.

Real estate prices in Montenegro

Real estate prices in Montenegro offer tremendous value compared to other European hotspots. Luxury villas along the Italian coastline can currently be purchased at a fraction of the prices charged in destinations such as Miami, the South of France or the Caribbean islands.

Spacious waterfront homes with private piers and panoramic sea views are available for under a million euros in prime coastal communities such as Tivat and Budva. In addition, investors can find opportunities to purchase existing hotels for sale in tourist areas as the hospitality industry continues to grow.

Meanwhile, mountain chalets nestled high in stunning hilltop locations can be had for even less. With stunning natural beauty and the leisure lifestyle of the Adriatic Riviera all within reach, now is the time to seize spectacular Montenegro property investment opportunities before values escalate further.

The average cost per square meter of real estate in large cities of Montenegro

The average cost per square meter in Montenegro’s prime urban areas remains remarkably affordable for luxury property. In the capital, Podgorica, prices range from €1,000 to €2,500, while sought-after coastal destinations such as Budva and Kotor offer top-quality living from €2,000 to €4,000 per square meter – a bargain for front-row seats to the Mediterranean’s finest panoramas.

Where to buy real estate in Montenegro?

For those seeking a Mediterranean retreat with all the trappings of luxury, several key destinations in Montenegro are top choices for real estate investment. The upmarket seaside enclave of Budva boasts lavish villas seemingly draped over tranquil bays.

To the north, elegant Tivat occupies a coveted riviera spot beneath sheer limestone cliffs. Elsewhere, the walled old town of Kotor offers medieval charm mixed with trendy boutiques and cafes.

For epic natural splendor, look no further than secluded coastal villages such as Pržno and Velika Plaža, where modern villas are set against a backdrop of rugged mountains plunging into the Adriatic. Whichever prime location you choose, owning real estate in Montenegro guarantees the good life along an exquisite coastline.

Types of real estate for sale in Montenegro

Appreciating property values – Prices are rising annually as Montenegro grows in popularity, signaling strong potential for investment gains. Values are expected to rise significantly over the next decade.

Low purchase costs – Now is a good time to buy, as property is still much more affordable than in major European destinations such as France, Italy and Spain.

Favorable tax environment – Montenegro has no capital gains, inheritance or wealth taxes, making real estate extremely favorable for ownership and inheritance.

Citizenship by investment – Yearlie non-nationals could acquire Montenegrin citizenship by investing more than €450,000, opening the door to staying and working. Now you can get a passport of Montenegro after 10 years of legal living in the country owning a house or a flat or by registering a firm.

Beautiful coastline and scenery – Montenegro boasts over 300 miles of stunning Adriatic coastline and snow-capped mountains, ideal for an extravagant island getaway.

Stable economy and government – The Foundation is moving forward as Montenegro looks to join the EU, signaling continued financial and political stability.

Growing tourism industry – The number of international visitors enjoying Montenegro’s beaches, nature and medieval towns is growing rapidly every year, boosting the property market.

Steps of buying real estate in Montenegro

Find the property: Look online or have an agent show you listings.

Hire a local lawyer: They help with paperwork and approvals if needed.

Make an offer: Submit your best price in writing to the seller.

Sign contracts: Review and sign a purchase agreement if the offer is accepted.

Do checks: The lawyer researches ownership and property details.

Pay fees: Transfer tax, lawyer, and notary when selling is registered.

Wait for the keys: Once paid and the paperwork done, the property is yours.

Research first: Know the rules for foreigners and the market before buying.

Choose the location carefully: Coastal spots are popular but inland cheaper.

Inspect thoroughly: Look at the conditions, and bills included before agreeing.

Use an agent: They know the area and can help with negotiation and forms.

Individual cost calculation of the Montenegrin citizenship

Obtaining Montenegrin citizenship offers invaluable benefits, but requires judicious financial planning. For those with dreams of living permanently on this scenic country’s shores and owning property free from restrictions, an investment of €450,000 reaps lifelong rewards.

Strategic real estate selections like luxury mountain villas or seaside mansions easily surpassing the minimum amount allow dual citizenship access.

Factor in positive cash flow from rental income and appreciation gains projected over holdings’ lifetimes and the equation balances substantially in aspiring citizens’ favor.

Moreover, the price of prestige passports eligible for travel across Europe starts looking like one of the Mediterranean’s most worthwhile deals. Taking steps now lays the foundation for a future of luxury amid Montenegro’s natural splendors.

Buying property through a mortgage in Montenegro

Mortgages are not available in Montenegro for foreigners from local banks. If you are a native, you can get a loan for your real estate. First, find a property and determine the purchase price. Ask banks for mortgage loan amounts. Most offer 60-80% loan-to-value ratios.

Banks will inspect the property and review your finances like income. Apply with documents and pay application fees.

If approved, banks issue approval letters stating the loan amount and terms. Terms are usually 5-20 years with monthly payments of principal plus interest. Interest rates are usually lower than in most of Europe. Sign mortgage contracts and pay transfer tax to finalize.

Make payments as stated until the mortgage is paid off and the property is fully yours. Mortgages help buyers by not needing all cash upfront. Just make sure to consider interest rates and monthly costs.

Property tax in Montenegro

Property tax rules in Montenegro. All homeowners pay a yearly tax on real estate. Tax is based on property value and location. Calculated by the municipality where located. Coastal areas are taxed more than inland. Pay by the deadline each year. Late fees are charged if missed.

Taxes help fund local services and infrastructure. Rate around 0.1-0.3% of assessed property value yearly. Value set by government estimates. Lower rates for primary residences versus vacation rentals. Can research the exact rate for location in advance.

Exemptions exist like new-build first year. Taxes increase the costs of owning property long term. Check rates before buying to budget properly. Paid to municipality office by owners annually.

Benefits of buying a property in Montenegro

  • Appreciating asset value
  • Tax benefits for owners
  • Potential for rental income
  • Citizenship opportunities
  • Beautiful natural scenery
  • Warm climate year-round
  • Affordable prices compared to other European hotspots
  • Thriving tourism industry growth
  • Stabilizing the economy and infrastructure
  • Rich history and culture
  • Low cost of living
  • Escape cold weather elsewhere
  • Ideal country for second homes or retirement
  • Good investment and lifestyle choice


What are the requirements for foreigners to purchase property?

Foreigners from the EU/EEA and Switzerland can purchase without restrictions, while others need ministry approval.

What are some popular areas?

The Bay of Kotor, Budva Riviera, Bar on the Adriatic coast, and city of Podgorica are tops.

What types can foreigners invest in? Apartments, houses, villas, resort properties, and land are options.

What are the typical costs?

Costs include the price, 3% tax, lawyer/notary fees, land fees, and due diligence checks.

What are rental strategies?

Rent long-term to locals/expats, or seasonally on Airbnb to capture summer tourism.


With an array of stunning properties at surprisingly affordable rates and a promising outlook, Montenegro’s luxury real estate market presents a truly compelling opportunity. Working with an experienced local brokerage helps navigate purchase processes and paperwork seamlessly.

Financing options including loans and citizenship investment programs further ease entry.

Through strategic planning, your Montenegro real estate can become a second home to cherish, a respected investment appreciating over time or provide residency in a scenic European nation.

Now is an ideal moment to start touring listings matched to your vision of Mediterranean leisure, paving the way for the future enjoyment of the country’s famed natural beauty from your very own luxury abode along its historical coastline.


  • Danielle Stone

    She has been writing professionally for 8 years, with articles published in various print and online publications. She is an avid researcher and strives to bring her readers the most up-to-date information and insights on the topics she covers. Danielle is also an expert on home renovation, interior design and construction, and she loves helping homeowners turn their dreams into realities. When she’s not writing or editing, Danielle enjoys spending time with her family, gardening and exploring nature.

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