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How to buy a flat in Montenegro: a step-by-step guide

Home » blog » How to buy a flat in Montenegro: a step-by-step guide

Buying property abroad is an important decision that requires care and knowledge. Many people want to buy a flat in Montenegro, and no wonder: beautiful beaches, a stable economy and a European standard of living. Learn the key points to avoid mistakes and make the right choice.

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Why Montenegro is the ideal place to buy a flat

Montenegro in recent years is rapidly becoming one of the most popular countries for buying property among foreign investors and residents of CIS countries. Why exactly is it? First of all, it is a stable economy and tax system, which provides favourable conditions for property owners. The state actively supports investments and offers preferential programmes, such as the “Golden Visa”, which allows you to obtain citizenship through the purchase of square metres.

Features of the local market also make it attractive for those looking for property in Montenegro. House prices here remain at a relatively low level when compared to more developed countries in Europe. In terms of financial attractiveness, Montenegro stands out favourably due to low taxes and the possibility of receiving a steady rental income. The country’s foreign policy, its calm social environment and excellent climate are additional factors that attract investors.

How to choose a location for a flat in Montenegro

Buying a flat in Montenegro means not just buying a property, but choosing a region that suits your lifestyle. The tranquillity of the mountains or the buzz of a resort town overlooking the sea?

  1. Budva is the centre of Montenegrin tourism. If developed infrastructure, variety of entertainment and proximity to the beach are important, a flat in Budva will be an excellent option. Prices here can vary from 1500 to 3000 euros per square metre in a new building.
  2. Tivat is a dynamic city with a luxurious marina that attracts those looking for a quiet life in close proximity to the sea. Living space with a sea view in Tivat can cost from 2500 euros per square metre.
  3. Kotor is an ancient town with a unique atmosphere. If you are looking for accommodation in Montenegro with historical value and unique atmosphere, this place is ideal. Here you can find both old houses and modern complexes.

Each location has its own unique atmosphere, but in any case, buying a flat in Montenegro with a sea view is not only a luxury but also a great investment.

How to buy a flat in Montenegro: step by step

Как купить квартиру в Черногории: пошаговый гайдLet’s take a step-by-step look at what you need to do:

  1. Choose a property. First of all, you need to decide on the location and type of property. Ask yourself questions: do you want to live in the historical centre or do you prefer more modern accommodation with sea views? It is important to consider the infrastructure, transport accessibility and potential profitability if you plan to rent out the property.
  2. Draw up a contract. In order to buy a flat in Montenegro, a foreigner will need to sign a preliminary agreement. This is an important step, in which all the terms of the transaction must be spelt out, including the price, terms of transfer of property and additional costs. Don’t forget to check that all necessary permits for the sale are in place.
  3. Open a bank account. In order to make the payment, it is necessary to open a bank account in Montenegro, to which the transaction amount will be transferred. This is a standard practice that will ensure transparency of financial transactions.
  4. To formalise the property. At the last stage, the main contract of sale is concluded and the property is officially transferred to the ownership of the buyer. The formalisation process can take from a few weeks to a month.

Documents needed to buy a property in Montenegro

For foreign nationals, the process of buying property in Montenegro is governed by special rules that will require compliance:

  1. A passport is the main identity document.
  2. Purchase permit – foreigners must obtain a permit to purchase property in Montenegro, especially when it comes to plots of land.
  3. A tax return is proof of your financial solvency.
  4. Income certificate – to verify your ability to pay.

What taxes and fees are waiting for you when buying a flat in Montenegro?

Taxes for foreign citizens here are quite transparent, but it is still important to be prepared for some expenses:

  1. Property Acquisition Tax. It is 3% of the value of the property, which is a fixed tax for all buyers.
  2. Annual property tax. Depending on the type and area of housing, the amount varies from 0.25% to 1% of the market value of the property.
  3. VAT. A VAT rate of 21 per cent is possible on new-build properties, but no VAT is charged on secondary housing.

It is also worth considering that the buyer is obliged to pay for the services of a notary and a lawyer, if he decides to use their services to formalise the transaction.

Property price in Montenegro: what to expect?

Property prices in Montenegro vary depending on the region, type of housing and proximity to the sea. For example, in Budva and Tivat prices for new flats within 50-70 sq.m. start from 1500 euros per square metre. More affordable options can be found in older buildings.

New flats in popular resort areas can cost twice as much as similar older buildings. At the same time, properties with sea views will always cost more – sometimes 30 per cent more than ordinary properties.

Conclusion

Цена недвижимости в Черногории: чего ожидать?Don’t forget that buying a flat in Montenegro is not only a decision to buy a home, but also a long-term investment. To make it successful, follow these simple recommendations:

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  1. Always check the paperwork and history of the property.
  2. Seek help from local experts.
  3. Calculate all possible costs, including taxes and legal fees.

Take the first step towards your dream of living by the sea and let Montenegro be your new home!

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Is it worth buying property in Montenegro: pros and cons of investments in the Balkans

Mediterranean climate, mountain landscapes, developed infrastructure, and direct access to the sea — all make the Adriatic state attractive for those considering buying real estate in Europe. But is it worth buying property in Montenegro from the perspective of investment, relocation, or renting out? The answer depends on goals, budget, risk approach, and understanding of the local market. Below is a detailed overview of the advantages and limitations for those considering the Balkan country as a base or investment direction.

Balkan Tourist Center: Tranquility, Openness, and Tourist Growth

Over the past decade, the country has consistently been among the most visited destinations in the Balkans. Resorts like Budva, Bar, Kotor, Tivat, Herceg Novi, and Ulcinj attract hundreds of thousands of tourists annually. The Balkan country remains an independent state with its own currency (Euro), active support for foreign investors, and orientation towards European standards.

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The growing tourism industry creates a stable demand for short-term and long-term rentals. This is why investing in Montenegro real estate seems like a logical step for those looking to generate income or securely place capital.

Property Prices in Montenegro: Affordable with Potential

Is it worth buying property in Montenegro? Compared to Croatia, Italy, and Greece, property prices in the Montenegrin state remain at a moderate level. In coastal areas, the price per square meter ranges from 1800 to 3500 Euros, while in the mountains it ranges from 800 to 1500. It is important to understand that the price depends on the distance from the sea, infrastructure availability, and year of construction.

Affordable prices allow entry into the market even with a limited budget. Property in Montenegro can be purchased for vacation purposes or with a view to long-term rental. There has been no overvaluation yet, and the market remains growing.

Advantages of Buying Property on the Coast

One common question is whether it’s worth buying property in Montenegro by the sea. The Adriatic coast is a key region of the country where the best projects are concentrated. Proximity to beaches, restaurants, marinas, and tourist routes makes such properties particularly attractive from an investment perspective.

Many expats and travelers consider the Budva Riviera and the Bay of Kotor as ideal places for living and leisure. The presence of direct flights is a plus: the airports of Tivat and Podgorica receive flights from most European countries, including Russia and the CIS.

Property in the Mountains: Seclusion and Tranquility

For those who value privacy, nature, and tranquility, real estate in the mountainous regions of the country is suitable. Such homes are ideal for winter vacations, remote work, or living away from tourist hustle and bustle.

Local villages in the areas of Zabljak, Pluzine, or Kolasin combine an alpine climate, panoramic views, and access to ski resorts.

Benefits of Foreigners Buying Property

Foreigners have full rights to own property in the country. Restrictions only apply to agricultural land. The property can be registered to a physical or legal entity. The purchase procedure is transparent, all documents are processed by a notary, and transactions are registered in the state registry.

The question of “whether to buy property in Montenegro” is closely related to the possibility of comfortable living. Owning an apartment or house entitles one to obtain an annual visa and open a personal bank account. Some investors use real estate as an argument for obtaining a residence permit.

Is it Worth Buying Property in Montenegro: Advantages of Purchase

Below are the key arguments in favor of acquiring property in the Balkan country:

  • stable currency — Euro;
  • low property ownership taxes (0.1%–0.5% of the value per year);
  • openness to foreign investors;
  • direct property ownership without restrictions;
  • rich cultural heritage and safe environment;
  • quality projects in new residential complexes;
  • access to nature: sea, mountains, lakes, forests;
  • simple transaction language and short registration process.

The advantages are listed from both an investment perspective and for personal comfort: living, leisure, relocation, renting out.

Drawbacks and Limitations to Be Aware Of

Before making a purchase, it is important to consider potential challenges. Below is a list of points requiring attention:

  • bureaucracy in certain municipalities;
  • high costs for repairing old properties;
  • not always transparent rental schemes with management companies;
  • possible interruptions in utility services in remote areas;
  • unfamiliar market and local registration specifics;
  • weak protection of tenants’ and investors’ interests in case of disputes.

Despite the openness, investing in Montenegro apartments is advisable only with consultation from a lawyer and choosing a reliable agency.

Is Buying Property for Income Worth It?

The profitability of renting out depends on location, season, and property condition. In coastal areas, short-term rentals can yield 6–8% annually, higher with proper management. In the mountains and inland areas, the profitability is lower, but capital growth is possible due to increased tourist interest.

If the goal is to combine leisure and profit, it is optimal to buy property in Montenegro by the sea but use a property management company. This will relieve the owner of the burden and ensure income stability. Passive investment is possible with proper legal documentation.

Growth Potential and Future Prospects

Montenegro’s jurisdiction is actively moving towards joining the European Union. This factor increases investment attractiveness. Infrastructure is improving, roads are being repaired, and new residential projects are growing along the coastline.

The question of “whether to buy property in Montenegro” is gaining strategic importance. Real estate investments can not only generate income but also serve as a channel for capital legalization and in the future — a platform for expanding residency rights.

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Is It Worth Buying Property in Montenegro in 2025?

Stable political situation, tourism growth, moderate prices, and the country’s European orientation create a positive investment climate. Owning a house or apartment in the Balkans is not only a way to preserve funds but also an opportunity to build an alternative lifestyle.

For those seeking a balance between risks and benefits, a reasonable entry point, and consistent demand, the answer to whether it’s worth buying property in Montenegro is affirmative. It is important to approach the purchase consciously, verifying documents, choosing a reliable developer, and focusing on long-term results.

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Property in Budva: market overview and current trends

The pearl of Montenegro is famous for its beautiful coastline, mild climate and developed infrastructure. Property in Budva is increasingly attracting foreign investors, tourists and those looking for an ideal place to live. It is a location that combines the beauty of nature, culture and comfort of modern life.

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Overview of the property market in Budva

Property in Budva is presented in a wide range: from modern apartments in new buildings to elite villas overlooking the Adriatic Sea. The market is oriented towards both local and foreign buyers.

Features:

  1. High demand for housing by the sea. Flats with panoramic views are popular among tourists and investors.
  2. Affordable prices compared to other holiday regions in Europe. In contrast to the Mediterranean, the cost of properties is moderate, which attracts buyers from all over the world.
  3. Steady price growth. The annual increase in property values in Budva is between 5% and 10%, especially in prestigious areas.

Current trends in the Budva property market

The property market reflects both global and local trends.

Growing interest in luxury property

Premium villas and luxury apartments with exclusive design and private pools are becoming increasingly sought after. Such properties are bought not only for living, but also as an investment for renting out.

Popularisation of renting

Renting out flats and villas for short term stays brings the owners a high income during the tourist season. In July and August, luxury rentals reach their peak, generating profits of up to 8-10% per year.

Increased demand for environmentally friendly homes

With the growing popularity of green building, investors and developers are beginning to consider sustainable technologies. New projects often include energy-efficient systems and the use of natural materials.

Popular areas to buy property in Budva

Each neighbourhood in the city has its own unique atmosphere, infrastructure and price range, allowing you to choose the perfect place for a variety of purposes, from permanent residence to investment.

Old Town: the charm

The historic heart of the region is full of culture and medieval atmosphere. Narrow cobbled streets, ancient stone buildings and cosy squares make this area truly unique. There are boutiques, cafés, restaurants and museums, creating the perfect blend of history and modern life.

Features of real estate in the Old Town of Budva:

  1. Architecture: most of the buildings are historic properties with unique facades and design.
  2. Infrastructure: everything you need is within walking distance, including beaches, marinas and attractions.
  3. Prices: the cost of housing here starts from 3,000 euros per square metre, which is due to the prestigious location.

Bečići neighbourhood: modernity and comfort

Becici is a modern resort area known for its wide sandy beaches, which have been repeatedly awarded international prizes for cleanliness and convenience. The location is ideal for both holidays and long-term investments.

Features:

  1. Residential complexes: in Becici there are new buildings with swimming pools, gyms and protected areas.
  2. Access to the sea: most properties are within walking distance of the beach.
  3. Prices: flats range from €2,000 to €3,500 per square metre.

Sveti Stefan: an elite choice

Sveti Stefan is a luxury resort with a secluded atmosphere. The area is famous for its premium villas and panoramic views of the Adriatic Sea. Sveti Stefan has become a symbol of elite holidays and status accommodation.

Features:

  1. Real estate: high-end villas and apartments, often equipped with swimming pools, terraces and garden areas.
  2. Privacy: the neighbourhood is ideal for those who value privacy.
  3. Prices: property prices start from €5,000 per square metre.

Rafailovici neighbourhood: balance between convenience and silence

Rafailovici is a quiet and cosy area with affordable prices and developed infrastructure. This place is ideal for family living and long-term rentals.

Features:

  1. Infrastructure: Rafailovici has shops, schools and medical facilities.
  2. Beaches: the area is known for its well-maintained beaches, which are ideal for holidays with children.
  3. Prices: flats can be purchased at prices ranging from 1,500 to 2,500 euros per square metre.

Property prices in Budva

The property market in Budva is diverse, allowing you to find options for every budget. The average cost of properties depends on the neighbourhood, type of housing and its characteristics:

  1. Apartments in the centre: from 1,500 to 3,000 euros per square metre. Central areas offer easy access to infrastructure and beaches.
  2. Sea view properties: from €2,500 per square metre. A panoramic view of the Adriatic Sea greatly increases the price of the property.
  3. Luxury villas: from €3,000 per square metre and up, depending on the level of luxury and additional amenities.

Additional Costs:

  1. Property purchase tax: 3% of the value.
  2. Notary and lawyer services: from €1,000 to €2,000 depending on the complexity of the transaction.
  3. Annual property tax: about 0.1% of the cadastral value.

Investment potential of real estate in Budva

The city has long established itself as one of the best places to invest in Montenegro. The constant tourist flow and growing demand for rentals make property in Budva a highly profitable asset.

Benefits of investing:

  1. Rental income: during the tourist season, rental income can reach 100-300 euros per day per flat or villa.
  2. Growth in property values: annual price increases in popular neighbourhoods are 5-10%.
  3. Residence permit programme: the purchase of a home worth €250,000 or more allows foreign investors to obtain a residence permit.

Investment risks and how to minimise them:

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  1. Choose prestigious neighbourhoods with developed infrastructure.
  2. Only work with trusted property developers and agents.
  3. Research the market and analyse the long-term prospects of the property.

Conclusion

Property in Budva offers excellent opportunities for living, recreation and investment. The city in Montenegro attracts with its natural beauty, developed infrastructure and market growth prospects. Before buying, it is important to study all aspects, from the choice of neighbourhood to additional costs, to make the deal as profitable and safe as possible. Regardless of the purpose of buying property – whether it is an investment or searching for the perfect place to live, Budva remains one of the best options on the Montenegrin market.

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