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Best cities in Montenegro to live in: where to move in 2025

Home » blog » Best cities in Montenegro to live in: where to move in 2025

Montenegro is a small but diverse country where Mediterranean tranquility coexists with business opportunities, comfort, and harmonious living. That’s why immigration has become popular among those seeking a warm climate, affordable real estate, and quality infrastructure. However, before moving to Montenegro for permanent residence, it is important to study the specifics of each region, as the terrain in Budva and Herceg Novi offers two completely different scenarios.

Let’s explore the best cities in Montenegro for living, evaluating their convenience for children, retirees, entrepreneurs, and those who simply want to change the pace of their daily lives.

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Podgorica — the capital and business center

The metropolis is ideal for those who want to live in the heart of the country and appreciate good transportation accessibility. Here you can find an international airport, universities, shopping centers, and a large number of job opportunities.

Podgorica is not a resort, so there is no tourist hustle and bustle here, and real estate is cheaper than in coastal cities. However, it can get hot here in the summer, and the lack of nearby sea may be a downside for beach lovers.

Budva — for the active and ambitious

The resort is the epicenter of Montenegro’s tourist freedom. If you value entertainment, dynamics, cafes, restaurants, and beautiful beaches, Budva is the perfect place to live. However, it’s worth noting that it gets overcrowded with tourists in the season, and in winter, the area noticeably quiets down.

Bar — convenience and accessibility

Bar is considered one of the most convenient cities for permanent residence. It combines infrastructure accessibility and the sea with a measured way of living. There are many schools, good shops, medical facilities, and no excessive hustle and bustle. The region is perfect for living with children.

Tivat — elite comfort

The region is suitable for those seeking a high level of comfort and are willing to invest in Montenegro’s real estate. It is home to the elite area of Porto Montenegro, popular among yachtsmen and businessmen.

Tivat has an airport, making it convenient for frequent trips. However, property prices here are higher than in most other settlements in the country.

Kotor — an ancient region with a special atmosphere

If you dream of living in a medieval center surrounded by mountains, Kotor is an excellent choice. The city is listed as a UNESCO World Heritage Site and attracts those who appreciate architecture, history, and secluded areas.

However, Kotor can be expensive for purchasing property, and its narrow streets and high humidity may not suit everyone.

Herceg Novi — tranquility and nature

The town is famous for its microclimate, considered beneficial for health. There are fewer tourists here than in Budva, and property prices are moderate.

For retirees, the region is ideal — the measured pace of the streets, developed healthcare, and beautiful landscapes create comfortable living conditions.

Cetinje — cultural center

The city is considered one of the best for a peaceful life and is suitable for those who love art and history. It was the capital of Montenegro and still retains its status as a cultural center. Here you can find museums, theaters, and historical landmarks.

However, it’s worth noting that it can be cooler in Cetinje in winter than in coastal cities, and the level of tourist activity is lower.

Ulcinj — for those seeking peace and space

The region is one of the most unique. Influenced by Albanian culture, Ulcinj offers long sandy beaches and a special atmosphere.

Property prices in Ulcinj are lower than in Budva or Kotor, but it’s important to consider that there is less Russian-speaking population here, and the infrastructure is not as developed as in larger centers.

Factors to consider when choosing the best city in Montenegro for living

Relocating is a serious decision that requires careful analysis. The key is to determine the criteria that will help you understand which cities in Montenegro are suitable for your relocation:

  • climate — the coast (Budva, Bar, Kotor, Tivat) offers mild winters and warm summers, but with high humidity. In mountainous areas like Cetinje, it can be quite cold in winter;
  • residence permit application — for long-term residence in the country, a residence permit is required. The most popular way to obtain a residence permit is by opening a company or purchasing property;
  • real estate in Montenegro — property is cheaper than in most European countries, but prices vary significantly. If your budget is limited, consider Bar or Ulcinj — here you can find housing at reasonable prices. In Tivat and Budva, property is more expensive, especially in elite areas like Porto Montenegro;
  • medical insurance — state healthcare in Montenegro leaves much to be desired, so many expats use private clinics. If you have chronic conditions, check in advance which medications are available in local pharmacies and whether they can be purchased without a prescription;
  • Russian-speaking community — in major centers like Budva, Tivat, Bar, and Podgorica, there are many Russian-speaking immigrants. They create communities on social networks where you can find useful advice, contacts for lawyers, real estate agents, and like-minded individuals.

Relocating to Montenegro is an opportunity to live in a country with stunning nature, a mild climate, and low expenses. However, it is important to carefully plan all the details in advance: choose a suitable region, arrange documents, understand healthcare and housing.

If you prepare thoroughly for the move, adaptation will be easy, and you will be able to enjoy living by the sea without worrying about everyday difficulties.

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Conclusion

The choice of location depends on your priorities. If you are looking for developed infrastructure and job opportunities, Podgorica is suitable. Love the sea and entertainment? Consider Budva or Tivat. If comfort and tranquility are important, good options are Bar, Herceg Novi, and Ulcinj.

The best cities in Montenegro for living are those that meet your needs. The country offers a comfortable climate, affordable real estate, and a high level of safety. Relocating can be a great solution for those dreaming of a house by the sea with European comfort.

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Главные мифы об инвестициях в недвижимость Черногории: краткий разбор и реальные данные

The main myths about real estate investments often distort the real picture of the market, creating false expectations of easy profit and risk-free investments for potential investors. This is especially true for popular destinations like Montenegro, where advertising promises often exaggerate income stability and developer reliability. Debunking these myths in this article reveals effective strategies.

Guaranteed Income is a Myth

In practice, the income from real estate in Budva and Kotor ranges from 4% to 6% per year. In the low season, rental demand drops by up to 50%. Investment risks in real estate always persist. Sustained profits from property require maintenance, control, and promotion. Ignoring these tasks leads to losses.

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Analysis is Not Mandatory — a Dangerous Misconception

Stereotypes push for hasty purchases. Mistakes occur without considering economics, prices, demand, and supply. In 2024, in Podgorica, supply exceeded demand by 15%, leading to a 7% decrease in rental rates. Sound analysis protects capital.

All Developers are Reliable Partners

Myths about real estate investments in Montenegro create an illusion of reliability. An experienced developer provides financial reports and properly executes contracts. A dishonest developer uses cheap materials, violates laws, and increases repair costs. Finances suffer without checking legal aspects.

Easy Start for Beginners is Fiction

Real estate investments for beginners require legal verification. Laws in Montenegro require registering contracts and confirming ownership. Lack of documents blocks rental and sale. A developer with a reliable reputation advises on taxes, utility payments, and restrictive conditions.

Price Growth is Not a Rule

Illusions often create false expectations of constant growth. In 2023, prices in Tivat fell by 5% due to oversupply. Demand and supply regulate the market, while economics and finances influence the cost. Improper planning leads to losses.

Quick Resale is a Rare Success

The mistaken belief that quick resale brings fast profits. Sales are subject to a 15% capital gains tax. Additional expenses on utility payments reduce net profit. The average profitable selling period is 3-5 years. The strategy requires calculation.

No Taxes — a Dangerous Misconception

Investments in foreign real estate are subject to an annual tax of 0.1% – 1% of the cadastral value. Rent requires a 9% income tax payment. Violating tax rules leads to fines and legal blocks.

Stable Rental Income is an Illusion

This stereotype often exaggerates rental stability. In the summer season, rental yields up to 6% annually, while winter income drops to 2-3%. The strategy includes diversification: short-term rentals in summer, long-term rentals in other seasons. Only a flexible approach sustains real estate income.

All Properties are Liquid — a Mistake

High demand is maintained in Budva, Podgorica, and coastal areas. In 2024, properties in the capital were sold on average within 60 days, while in remote areas, the period extended to 180 days. Analyzing liquidity increases the chances of successful sales.

Montenegro — an Ideal Country for All Investors

Montenegro attracts with simplified purchases, stable laws, and affordable entry. The market requires careful planning: maintenance costs, taxes, seasonal fluctuations, price dynamics. Investments in housing by inexperienced investors require risk analysis and calculations.

How to Debunk the Main Myths About Real Estate Investments

Misconceptions disappear with proper preparation and accurate calculations. Real actions open the way to stable earnings.

Practical steps:

  1. Analyze the market: assess demand, supply, prices, and infrastructure.
  2. Check the developer: study completed projects, request reports, verify permits.
  3. Verify legal aspects: confirm ownership, study contracts, conduct legal checks through a lawyer.
  4. Calculate the financial model: consider taxes, utility payments, repairs, income forecast.
  5. Develop a strategy: determine ownership period, choose rental or resale, assess risks.

Financial analysis and clear planning minimize risks and increase efficiency.

Current Real Estate Market Trends in Montenegro

In 2024, the number of new projects on the coast increased by 12%, while demand remained steady in the center. Prices rose by 4% in Budva and fell by 2% in Tivat.

Rental in tourist zones averages 6% annually in summer and 2-3% in winter. In Podgorica, property tax reaches 1% of the cadastral value per year. Utility payments in a 60 m² apartment range from 80-100 euros per month. Repairs cost 400-600 euros per square meter.

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Montenegro’s market continues to evolve. Realistic planning and in-depth analysis help avoid mistakes.

Myths About Real Estate Investments: Key Takeaways

The main myths about real estate investments disappear with accurate calculations and a sound strategy. Montenegro offers opportunities but requires attention, legal clarity, and consideration of all expenses. Financial literacy and deep analysis enable building a stable income and avoiding misconceptions.

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Property taxes in Montenegro in 2025: what buyers and owners need to know

Property taxes in Montenegro remain some of the most favorable in Europe, making the country attractive to investors. Simple rules for acquisition, affordable prices, and stable tax legislation allow for advantageous purchases of apartments, villas, and houses for both locals and foreigners. However, before making a purchase, it is important to understand which fees need to be taken into account in 2025.

In this overview, we will look at the fees paid by property owners, tenants, and sellers in Montenegro, as well as delve into the nuances of tax residency.

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Property Purchase Tax in Montenegro

Acquiring property involves a mandatory contribution, but its amount depends on the type of housing. For new buildings, there is no fee if the purchase is made from the developer, as VAT (17%) is already included in the price. However, when purchasing existing properties, the tax amounts to 3% of the cadastral value of the property.

A foreigner purchasing property should take into account that the fee is paid by the buyer and is one-time. Payment requires submitting a tax declaration within 30 days after signing the sales contract. Additionally, notary and registration fees, amounting to around 0.5-1% of the transaction value, must be considered.

Rental Income Tax

If you rent out property in Montenegro, be prepared to pay a rental income tax, which amounts to 15% of the net profit. However, there are nuances that can help reduce the taxable base and avoid overpayment.

Firstly, the tax is calculated not on the full rental amount, but on the profit remaining after paying utility bills and property maintenance expenses. If rental agreements are formalized, expenses for repairs, depreciation, and even improvements to the property can be deducted.

For short-term rentals (e.g., tourist rentals), registration with the tax authorities and obtaining a permit for such activity will be required.

Property Sale Tax in Montenegro

If you decide to sell an apartment, villa, or house, it is important to consider how long the property has been in your possession.

If the property has been owned for more than three years, no levies need to be paid — the state exempts such owners from payment. However, if less than three years have passed since the purchase, a 15% tax on the difference between the purchase and sale prices must be paid.

Taxes for Foreigners

There are no separate fees for foreigners in the country, so a foreigner pays the same fees as local residents. However, it is important to consider tax residency.

If a person resides in the country for more than 183 days a year, they automatically become a resident and are obliged to pay contributions not only on rental income but also on any other income, including profits outside Montenegro.

For non-residents, the burden is limited to property and income earned within the country.

How to Reduce Fiscal Payments on Property?

Although property taxes in Montenegro remain relatively low, owners and foreign investors can utilize several strategies to reduce them:

  • Buying new properties from developers — acquiring property directly from developers allows avoiding property purchase tax. When purchasing existing buildings, a 3% fee is charged, whereas this fee is waived for new constructions as VAT (17%) is already included in the price. This is especially beneficial for those considering long-term property investments;
  • Choosing properties in areas with low tax rates — municipalities set individual tax rates, which can range from 0.1% to 1%. By selecting a property in less popular locations, such as small towns and rural areas, annual expenses can be significantly reduced. Property taxes are minimal in small towns and rural areas;
  • Official registration of property rental — if a property is rented out, the owner must pay a rental income tax (15%). However, with official rental agreements, deductions can be claimed to reduce the taxable base. These expenses include repair costs, property maintenance, depreciation, and utility bills;
  • Long-term property ownership — if a property is sold more than 3 years after purchase, the owner is exempt from profit taxation. For foreign investors, this is one of the main advantages as it avoids additional costs upon subsequent resale;
  • Choosing the right resident status — if a foreigner resides in Montenegro for more than 183 days a year, they automatically become a resident. For minimizing the tax burden, it is better to remain a non-resident, maintaining obligations only within property ownership.

Thanks to these tax strategies, Montenegro’s tax legislation remains one of the most attractive in Europe. A smart approach to fiscal payments makes property ownership not only convenient but also financially advantageous for those considering long-term investments.

Conclusion

In 2025, property taxes in Montenegro remain transparent and convenient for both investors and regular owners. A simple tax system, absence of hidden fees, and flexible conditions make property purchase and ownership a beneficial decision.

When purchasing existing properties, buyers pay a 3% tax, but this fee is not levied when buying new constructions.

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For those planning to sell property, the conditions are also favorable: if the property has been owned for more than three years, no profit tax is levied. For foreign buyers, the rates remain the same as for citizens, but it is important to consider the rules of tax residency.

Overall, buying property in Montenegro is a clear and advantageous process, making the country attractive for both personal residence and long-term investments.

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