Montenegro real estate

Reviews

Advantages

Blog

Leave a request

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.

starda_1140_362_en.webp

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:

monro_1140_362_en.webp
  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!

Share:

Related posts

What are the pros of living in Montenegro and whether you should buy property there

Montenegro attracts Russians and other foreigners with picturesque landscapes, mild climate and the opportunity to buy property by the sea. But before you take that important step, it is worth considering all the advantages of living in Montenegro and understanding whether buying property here is really a justified decision.

lex_1140_362_en.webp

Living by the Adriatic Sea: romance or pragmatism?

Montenegro is a wonderful blend of natural splendour and practical advantages. The country occupies a small area, but it is home to majestic mountain ranges, azure seas and ancient cities rich in history. Living here can be both a romantic fairy tale and a rational choice for those looking for a new haven to live or invest in.

Moving to this country interests more and more Russians. There are several reasons for this: comfortable climate, low cost of living and the opportunity to easily integrate into the local community. But you will not be fed up with the beauty alone, so it is worth weighing up the real advantages of living in Montenegro to understand whether this country is suitable for long-term residence or property investment.

The property market is developing dynamically, and the ease of buying a home for foreigners makes this country particularly attractive to investors. An important factor is the absence of a language barrier and the friendly attitude of locals to Russian-speaking emigrants.

Pros of living in Montenegro for Russians

The country offers special advantages for Russians due to its historical and cultural ties. It is easy to adapt, do business and enjoy a quality life here without unnecessary formalities.

Climate and ecology: paradise by the sea

Montenegro is located on the Adriatic coast and has a typical Mediterranean climate. Summers are sunny and hot, with temperatures hovering between +28-30 °C, while winters are mild, rarely dropping below +10 °C. Spring and autumn are warm and pleasant, making life in the country comfortable all year round.

The ecological situation in Montenegro is considered one of the best in Europe. There are no large industrial enterprises polluting the air and water. Mountainous areas are covered with dense coniferous forests, which saturate the air with useful phytoncides. The transparent waters of the Adriatic Sea are ideal for swimming and sea walks.

The number of sunny days per year reaches 260, which is especially pleasing to the inhabitants of northern countries. The bright sunshine and soft sea breeze contribute to the improvement of well-being and quality of life. This climate is ideal for families with children, the elderly and anyone who values health and an active lifestyle.

Affordable living and security

Montenegro is famous for its affordable prices for food, accommodation, transport and services. The cost of living here is lower than in most European countries. The approximate cost of daily necessities for a family of three is around €1,000-1,200 per month.

Pricing Examples:

  1. Lunch in a mid-range restaurant – €15-20.
  2. A kilo of apples or tomatoes is about €1.
  3. A litre of petrol is about €1.50.
  4. A monthly public transport pass is €20.

Security is one of the main advantages of living in Montenegro. Crime rates here are low and serious incidents are extremely rare. The country is among the ten safest in Europe. The calm situation on the streets allows you to walk at any time of the day without fear for your life and property. This is especially important for families with children and pensioners who value stability and peace.

For Russians, adaptation is easy thanks to the widespread use of the Russian language. Many locals learn it in schools or know it thanks to tourism. This makes communication easier and allows everyday matters to be resolved quickly.

Is it worth buying property in Montenegro?

Interest in Montenegro property among Russians is growing every year. This is due not only to the beautiful views, but also to favourable conditions for investors.

Where it is profitable to buy property

Montenegro’s property market offers a wide range of properties for different purposes and budgets. Popular regions for purchase include:

  1. Budva is a tourist centre with a developed infrastructure. The average cost per square metre here is €2,500-3,500. It is suitable for renting and holiday rentals.
  2. Bar is a peaceful city to live by the sea. Flats cost between €1,800 and €2,200 per m². A great place for families and retirees.
  3. Podgorica is the capital of the country, which is suitable for business travellers. Here the price per square metre is €1,500-2,000.

There are additional costs to consider when buying a property:

  1. Transfer Tax – 3% of the value of the home.
  2. Notary services – €500-700.
  3. Realtor services – 3-5% of the object price.

Owning property in Montenegro also entitles you to a residence permit. This is especially favourable for those who plan long-term residence in the country.

Property for living in retirement or with children

Montenegro is an ideal place to live in retirement. Here there is no hustle and bustle of megacities, and life flows in a measured and calm way. Retirees can enjoy nature, fresh sea air and affordable prices for products and services.

Families with children will also find many advantages in Montenegro. There are international schools in the country, where education is provided in English, Serbian and Russian. The safe environment, clean air and warm sea create ideal conditions for children’s health and development.

Advantages and disadvantages of living in Montenegro

Any relocation requires careful analysis of all the pros and cons. Montenegro has many advantages, but there are also some disadvantages.

Advantages:

  1. Ease of adaptation due to the spread of Russian language and similarity of cultures.
  2. Possibility to obtain a residence permit when buying a property.
  3. Affordable living and property prices.
  4. Favourable climate and clean ecology.
  5. Safety and peace of mind.

Disadvantages:

  1. A limited number of high-paying jobs.
  2. Seasonality of tourism business, which affects revenues.
  3. Bureaucratic difficulties in the processing of documents.

Conclusion

All the pros of living in Montenegro add up to an attractive proposition for those looking for a new place to live or invest. The warm climate, affordable prices, security and the possibility of easily purchasing property make this country ideal for Russians.

gizbo_1140_362_en.webp

Investing in Montenegrin property is not just an investment, but a chance to start a new, comfortable life by the sea.

Read

Mortgage in Montenegro for foreigners: what you need to know if you want to invest in real estate

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.

gizbo_1140_362_en.webp

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.

starda_1140_362_en.webp

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.

Read