How to Choose Real Estate for Investments: Strategy, Expert Tips

Montenegro’s picturesque coastline and its charming coastal towns make it a great place to live and invest in property. With magnificent views, developed infrastructure and a variety of residential properties, property by the sea in Montenegro is in great demand. Our article will help you choose the ideal region for a comfortable life or a profitable investment.

Property in Montenegro by the sea: Budva and Budva Riviera

The Budva Riviera is the heart of the country and a place that attracts with its active atmosphere, luxurious beaches and highly developed infrastructure. The region is considered ideal for those who want to be at the centre of the action but still enjoy beautiful scenery.

Housing in Budva: what you need to know

Budva is a tourist pearl. Here the objects are in high demand due to the developed infrastructure and tourist flow. Apartments by the sea in Montenegro in this city are especially popular among buyers because of the view of the Adriatic and proximity to entertainment and shopping. The cost varies depending on the location, but on average apartments will cost 2000-4000 euros per square metre.

Buying a flat in the city centre will provide access to all amenities – beaches, restaurants, clubs and historical sights.

Bečići and Rafailovići: tranquillity and comfort

If Budva is too noisy and active for you, consider Becici and Rafailovici, neighbourhoods that are just a short drive away. There is a more relaxed atmosphere here, and properties range from cosy apartments to luxury beachfront villas. Becici is famous for its long golden sandy beach, while Rafailovichi offers stunning coastal views and picturesque streets with restaurants and cafes.

The price per square metre is around 2500-3500 euros, making these places a great choice for family holidays and quiet living.

Pros and cons of the Budva Riviera

Pros:

1. Highly developed infrastructure. Budva Riviera has everything you need for a comfortable life – supermarkets, medical centres, schools, kindergartens, restaurants, bars, night clubs, fitness centres, SPA and much more.
2. Variety of real estate. You can find small studios and apartments as well as luxury villas with swimming pools, gardens and panoramic sea views.
3. Proximity to the sea. Almost any accommodation is within walking distance of the sea – a huge advantage for those who appreciate sea air and beautiful views.

Minuses:

1. High property prices. Budva is one of the most expensive places to buy a house by the sea in Montenegro, especially during popular seasons.
2. Tourist oversaturation. During the summer season, the population increases several times, which puts additional pressure on the infrastructure and can cause discomfort for those seeking peace and quiet.
3. Property taxes here are also slightly higher than in less popular regions, which is worth considering when planning your investment.

Property in Montenegro by the sea: St Stefan and Milocer

St Stephen’s is a symbol of luxury and seclusion. This island resort attracts the rich and famous with its luxurious hotels and unique villas.

Advantages of living on St Stephen’s

Here are magnificent villas on the Montenegrin coast, which are surrounded by centuries-old pine trees and azure sea. Residences on St Stefan offer a unique opportunity to enjoy absolute privacy and a luxurious lifestyle. The average cost of property in this area starts from 5000 euros per square metre, and due to strict development rules and a limited number of properties, the demand for housing here is always high.

Why it is worth investing in St. Stephen’s properties

There are several advantages to investing in metres:

1. High demand for luxury villa rentals among tourists.
2. Prestigious location with access to gated beaches.
3. Simplified visa procedure for buying property in Montenegro, which makes it easier for foreigners to buy a home.

Milocer: history and modernity

Milocer is a historical resort with incredible nature and a protected area. The residences of the former royal family are located here, which gives this place a special atmosphere. Flats with sea view in Montenegro in Milocer area have not only stunning views, but also access to quiet beaches and parks. The price for the area here starts from 4000 euros per square metre. The place attracts those looking for privacy, luxury and proximity to nature.

Property in Montenegro by the sea: Tivat and Herceg Novi

Tivat and Herceg Novi are two cities with different atmospheres, but both are attractive for property purchases due to their combination of culture, history and modern amenities.

Tivat: investment and quality of life

Tivat is a city that is actively developing thanks to the Porto Montenegro project, a huge marina with luxury apartments and boutiques. Property in Montenegro’s coastal cities here is ideal for those who appreciate modern amenities and prestige. The average price per square metre here is 3500-5000 euros, depending on the proximity to Porto Montenegro. Tivat attracts investors because of its high level of infrastructure and comfortable living environment.

Herceg Novi: the charm of a historic city

Herceg Novi is rich in history, cultural heritage and numerous festivals. Housing in Montenegro on the coast is often purchased by those who appreciate the authentic atmosphere and quiet rhythm of life. The cost of real estate in Herceg Novi is slightly lower than in Tivat – on average 2000-3000 euros per square metre. The historic centre of the city attracts with its narrow streets, fortresses and stunning views of the Boka Kotor Bay.

Tivat vs Herceg Novi: where is the best place to live?

Tivat:

1. Modern infrastructure. High level of service, boutiques, restaurants, schools, kindergartens and medical centres make Tivat a convenient place to live.
2. Prestige. Porto Montenegro creates an atmosphere of luxury and provides status, which attracts investors and wealthy individuals.
3. High property prices. Tivat is among the most expensive cities in Montenegro due to the high demand for housing and the prestige of the region.
4. Great for young families and active people. Opportunities for sports, water activities and recreational activities create a comfortable environment for active people and young families.

Herceg Novi:

1. Authentic atmosphere. The historic part of the city with its fortresses and narrow streets creates a unique feeling of old Montenegro.
2. More affordable property prices. Compared to Tivat, prices here are much lower, which makes buying a home more affordable.
3. Rich culture. Numerous festivals, artistic and cultural events give Herceg Novi a unique charm.
4. Ideal for those who appreciate tranquillity and tradition. The town is perfect for retirees, families with children and those looking for peace and quiet away from the noise of the big tourist centres.

When buying it is worth considering the taxes, which may be slightly higher in Tivat due to the level of infrastructure development and attractiveness to tourists.

Conclusion

Property in Montenegro by the sea is a great opportunity to get a home in a beautiful location, as well as an excellent investment. Each of the described regions offers its own advantages: Budva – active and lively, Sveti Stefan – upmarket and luxurious, Tivat – modern and prestigious, Herceg Novi – authentic and historical. The choice of region depends on personal preferences and goals. Consider each of these options to find the place that will become your home or bring a stable return on investment.

The Balkan Peninsula continues to attract investors, entrepreneurs, and families interested in a calm, safe, and accessible European jurisdiction. One of the most straightforward paths for foreigners is obtaining a residence permit in Montenegro through real estate purchase. The procedure remains relevant in 2025, combining the flexibility of immigration legislation, moderate price thresholds, and the possibility of further legalizing one’s status.

Legal grounds for obtaining residency

A citizen of another country can obtain a residence permit by purchasing real estate in Montenegro. The law allows applying for residency in Montenegro based on real estate ownership even without employment obligations. It is important that the property is suitable for living or entrepreneurial activities and is registered in the state cadastre.

The key requirement is proof of actual residence in the country. The residence permit is issued for one year with the possibility of extension. After a five-year period, permanent residency can be obtained, followed by eligibility for citizenship subject to additional conditions.

Housing requirements and ownership categories

The legislation does not restrict applicants in the type of real estate. It can be either residential or commercial property. The main criteria are legal grounds for ownership, absence of encumbrances, and compliance with minimum sanitary and technical requirements. It is also possible to purchase shares or multiple properties if they are registered under individual ownership.

Residency through real estate purchase implies that the owner can reside in Montenegro legally along with immediate family members. Spouses and children can be included in the application, with each person receiving a separate document and individual status.

Stages of obtaining residency in Montenegro through real estate purchase

To understand the procedure, it is necessary to grasp the process structure—from property selection to the final decision of the immigration authority. All steps require careful adherence to deadlines and proper documentation. The residency acquisition algorithm includes:

• signing a sales contract with property registration in the Registry;
• opening a bank account;
• registering at the place of residence and confirming actual presence in the country;
• preparing and submitting a document package to the immigration service;
• undergoing fingerprinting and photography;
• waiting for residency application approval.

Legal support is required at all stages. It is especially important to ensure the correctness of document translations and the validity period of notarial certifications. Residency through real estate purchase does not require proof of employment, making it a convenient option for retirees and remote professionals in Montenegro.

Required document set

Documentary formalities play a crucial role. Authorities demand a complete and up-to-date package; otherwise, the review process is halted. The standard set includes both personal documents and property rights confirmation. The basic list comprises:

• valid passport with a copy;
• property ownership document issued by the cadastre service;
• certificate of no criminal record;
• medical certificate of health status;
• proof of residence address;
• receipt of state fee payment;
• standard application form;
• photos and migration card form.

Residency in Montenegro through real estate purchase is granted only after submitting all the aforementioned documents. The process takes from 30 to 60 calendar days, depending on the workload of the authorities.

Financial aspects and taxes

Housing costs vary depending on the region. For instance, prices in Podgorica or Kotor are higher than in provincial towns. In Montenegro, there is no minimum price threshold for participating in the residency program through real estate purchase in 2025, but for practical procedure implementation, it is recommended to consider an amount starting from 50,000 euros.

Additional expenses include notary services, fees, and an annual property tax (within 0.1-1% of the cadastral value). Opening a bank account at a local institution is also considered a mandatory requirement. The absence of taxes on income earned outside the country makes Montenegro particularly attractive for investors.

Advantages and prospects for residents

Obtaining resident status allows living in the country year-round, using internal services, entering into contracts, educating children, and receiving medical services. Despite not being part of the Schengen Area, Montenegro officially aspires to EU membership, making immigration particularly promising.

Residency through real estate purchase is not just a way to move to Montenegro but also an opportunity to establish a base for further integration into Europe. The legal regime is favorable, the processing time is short, and the procedure is fully transparent. Among the advantages are a stable financial system, pleasant climate, accessible education, and healthcare.

Living with family: stress-free relocation

Relocating with the whole family is possible provided ownership of real estate and approval for each applicant. Domestic legislation supports family reunification, and the country’s infrastructure is adapted to international standards. Foreigners have the right to enroll children in schools, enter into banking agreements, and establish commercial enterprises.

The country has a high level of security, and the language barrier is minimal due to the prevalence of English and Serbian. This makes residency through real estate purchase a convenient choice for long-term living in Montenegro.

Residency in Montenegro through real estate purchase: key points

Residency through real estate purchase remains one of the simplest and most accessible programs for legal relocation to Montenegro. The legislation offers a transparent procedure, moderate requirements, and a quick processing time. Real estate ownership becomes the basis for application submission without the need to obtain work permits.

For investors, families, and those planning to live in the country long-term, it is an optimal path with the possibility of subsequent permanent residency and eventually citizenship.