Montenegro property: Choose the best option

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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.

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.

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.

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.

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.

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.

Montenegro is one of the few European countries where a combination of favorable taxes, stable housing demand, and price growth makes the market attractive to foreign investors. Transparent rules and affordable cost per square meter turn property purchase into a profitable strategy. However, not everyone is ready to pay for the property in full. In this case, getting a mortgage in Montenegro for foreigners becomes relevant, allowing the acquisition of property under certain conditions without the full sum in hand.

The country’s banking system offers non-residents various financing programs, although the choice is less diverse compared to EU countries. Nevertheless, the loan application process is organized and possible for both individuals and companies registered in the republic.

Features of the mortgage market

Lending in the country is regulated by local legislation and banking norms. Approval rates for foreigners directly depend on income levels, property acquisition goals, and buyer types. It is easiest to get a loan secured by the purchased property, especially if it is located in major cities or tourist areas.

To apply for a loan, a foreign buyer must meet financial requirements and pass a reliability check. Financial institutions require transparency of income sources and justification of the transaction’s purpose. Although in some cases, remote application submission is possible, approval often occurs after a personal visit.

Who can qualify for a mortgage loan?

Banks work with both individuals and legal entities. If the transaction is made on behalf of a company, it is necessary to confirm the legal status and business stability. Mortgages in Montenegro for legal entities are available for registered companies, especially if foreigners are acquiring commercial property.

A separate category includes buyers who already have resident status. Mortgages in Montenegro for residence permit holders are processed under general conditions but with fewer checks. Having a temporary or permanent residence permit speeds up the loan approval process and increases the chances of approval.

What factors influence getting a mortgage in Montenegro for foreigners?

Banks consider each application individually. Key factors influencing the loan offer include the loan amount, type of property being acquired, and the borrower’s financial position. The monthly payment amount is calculated based on income, not just the property’s value. Below are the key parameters affecting the offer:

• Down payment — from 30% to 50%, depending on the bank and buyer’s status;
• Loan term — up to 25 years, with the option of early repayment without penalties;
• Loan currency — euro, regardless of the borrower’s citizenship;
• Mortgage interest rates — from 5% to 7% per annum, depending on fixed or floating schemes;
• Mandatory conditions — property insurance, property valuation, and opening a bank account.

Mortgage approval occurs after verifying all documents and property evaluation. The bank may reject the application without explanation, especially in cases of unstable income or lack of credit history.

What documents are required?

The process of obtaining a mortgage in Montenegro for foreigners takes from two weeks to a month. In some institutions, it is possible to submit documents online, but personal presence during contract signing remains mandatory. Special attention is paid to the legality of income and the applicant’s financial resume. Let’s consider the main document requirements:

• Mortgage documents — passport, income statement, bank statements for 6 months;
• Tax declaration — mandatory for self-employed individuals and business owners;
• Building appraisal — conducted by a third-party appraiser upon request;
• Sales contract — provided at the final stage;
• Account opening — mandatory in the chosen bank for loan transfer and servicing.

Financial institutions require translated and notarized copies of all documents. Additional certificates are sometimes requested, especially when applying from abroad.

Which institutions work with non-residents?

The country’s banking system includes both local and international institutions. Banks in Montenegro for foreigners offer a limited number of mortgage programs, but upon approval, they provide stable service conditions and transparency. The most active players include CKB Bank, Erste Bank, Hipotekarna Banka, and NLB Montenegro.

Each bank has its requirements for borrowers, especially when it comes to real estate loans in Montenegro without permanent residency. Major creditors with international experience are more favorable towards foreigners.

Mortgage and investment attractiveness

For those considering housing as an asset, investing in Montenegro real estate remains one of the most stable directions. Tourist flow, limited market supply, and affordable prices make property purchase with subsequent rental a profitable strategy. Even with a loan, the property pays off within 7–10 years.

Through mortgage programs, an investor can minimize initial investments by spreading payments over several years, allowing the purchase of more liquid assets, preserving capital, and earning rental income to cover monthly payments.

Mortgage in Montenegro for foreigners: key points to remember

Mortgages in Montenegro for foreigners are a real tool for purchasing residential property on installment, even without resident status. Banks provide loans to both individuals and registered companies, with conditions varying based on income levels and document quality.

The process requires collecting a standard set of documents, opening an account, property evaluation, and making an initial down payment. The loan amount depends on property characteristics, and mortgage interest rates remain stable at the European market level.

Having a residence permit simplifies the procedure, but even without it, a foreign buyer can expect a positive decision. Property loan processing often becomes the first step for those considering long-term investments in Montenegro real estate with the prospect of profit and expanding property portfolios.

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.

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.

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.

In 2025, buying real estate in Montenegro remains one of the most affordable and sought-after investment options abroad for Russians. The relatively simple procedure, lack of restrictions, transparent registration, and favorable treatment of foreigners make the country attractive for investors, families, and those looking to change their country of residence without complex bureaucratic procedures. Montenegro is not part of the EU, but is in the process of Eurointegration, which increases the investment attractiveness of the local market.

Why Invest in Real Estate in Montenegro?

Stable prices, low entry threshold, high tourism potential, and solid rental yields make the country attractive for investors. In coastal areas, annual profit from short-term rentals reaches 6–8%, while property value growth remains stable at 5–7% per year.

Key advantages include lack of restrictions, direct ownership without the need for trusts or nominal owners, simplified registration system, soft tax regulation, and affordable fees.

Buying real estate in Montenegro remains one of the simplest and legally secure ways of investing in Europe for Russians, even in conditions of international instability.

Where to Buy Real Estate: Regions and Property Types

Montenegro offers several geographical zones with different infrastructure, costs, and purposes. Most Russian buyers prefer the coast — combining a mild climate, access to the sea, and developed rental opportunities. Tivat and Bar are suitable for permanent residence, Budva and Herceg Novi for leisure, and the north of the country or the islands of Lake Skadar for tranquility and nature.

Buyers have access to all types of properties: apartments, villas, houses, land plots, or commercial spaces. Owning real estate not only provides comfort but also the opportunity to apply for residency, start a business, or rent out to tourists. This approach is especially relevant for those considering where to live in Montenegro, combining personal residence with investment benefits.

Step-by-Step Guide to Buying Real Estate in Montenegro for Russians: How to Buy Correctly

The procedure is simple and overseen by a notary and lawyer. No separate permission is required. The transaction is completed within 3–6 weeks if all conditions are met. Foreigners are not restricted from buying real estate in Montenegro — ownership for personal use is allowed. Land plots can be acquired through opening a company.

The main steps of the purchase:

• property selection through a real estate agency or independently;
• signing a preliminary contract with specified conditions;
• legal verification, obtaining a tax identification number, opening a bank account;
• signing the main contract with a notary, registration of rights;
• payment of state fees and property transfer tax.

Each step should be accompanied by legal support, especially if the property is on the secondary market or has encumbrances. Also, consider the language factor — many documents are in Montenegrin and require certified translations.

Documents Required for Buying Property

To complete the transaction, a minimal set of documents is required. All papers must be submitted in original with a notarized translation. The absence of a visa does not hinder the transaction, and obtaining a tax identification number takes just one day. Buying real estate in Montenegro involves straightforward bureaucratic procedures, making the process quick and accessible for Russians even during short stays in the country.

Additionally, consent of the second spouse is required if the purchase is made within marriage. Mandatory documents include a passport, tax identification number obtained in Montenegro, a sales contract drafted by a lawyer, a bank transfer payment certificate, notarization of the transaction, and registration in the cadastre.

The buyer receives an extract from the cadastre and becomes a full-fledged owner, possessing the same rights as the country’s citizens. Residency permit applications can be submitted immediately after registering the property in one’s name or under a legal entity. In the future, with conditions met, the path to permanent residency and citizenship becomes open, especially with long-term residence and stable income.

Expenses When Acquiring Property and Taxes

The financial aspect of the transaction includes several mandatory payments. The main property transfer tax is 3% of the amount specified in the contract. Additionally, fees for notary services, lawyers, registration fees, and translators are paid if parties speak different languages. Typical expenses include:

• property transfer tax — 3% of the value;
• notary services — from 200 to 500 euros;
• cadastre registration — up to 150 euros;
• lawyer services — from 500 to 1000 euros;
• bank transfers — up to 1% commission.

Overall additional expenses during the process can reach 5–7% of the property price. Payments are made in euros, requiring prior opening of an account in a local bank. Additionally, documents confirming the source of funds need to be prepared, especially for amounts exceeding 15,000 euros. These conditions accompany buying real estate in Montenegro and are important to consider when planning the budget for the transaction for Russians.

Procedure of Buying Real Estate in Montenegro for Russians and Residency

Russians benefit from a simplified acquisition scheme: they can own property registered to an individual or open a company to purchase land or commercial property. After property registration, applying for residency is allowed, provided a business is opened or income is confirmed. The standard procedure includes:

• company registration in Montenegro;
• submitting documents to the Ministry of Interior: passport, certificate of no criminal record, medical insurance;
• confirmation of residence address — through property purchase or rental;
• issuance of a temporary residency permit for 1 year with the right of extension.

After five years of residence in the country, it becomes possible to apply for permanent residency, and with language and financial conditions met, for citizenship. Montenegro does not require renunciation of an existing passport, making buying real estate in Montenegro even more attractive for Russians as a first step towards legalizing status and obtaining a second citizenship.

Buying Real Estate in Montenegro for Russians: Conclusions

For Russians, buying real estate in Montenegro remains a reliable way to not only acquire property by the Adriatic Sea but also gain opportunities for long-term residence, rental income, business registration, and migration prospects. The combination of easy processing, reasonable prices, European lifestyle, and the country’s openness makes Montenegro one of the best destinations for those seeking stability, a warm climate, and opportunities within Europe.