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Advantages of Buying Real Estate in Montenegro

Buying real estate in Montenegro is advantageous on many different levels such as obtaining a residence and work permit and benefits of high rental income. Montenegro, the youngest country in the Balkans, left Serbia in 2006 and declared its independence. As of 2006, real estate investments have contributed enormously to the economy in the country, which has become a center of attraction with its flexible investment and immigration laws for foreigners. Montenegrin construction sector, which is still developing, is unable to respond to the intense demand in the real estate field. This creates an extra advantage since the properties you purchase in Montenegro increase in value really fast.

Foreign investors have the right to acquire any kind of real estate in Montenegro whether it’s an apartment, commercial facility or construction site.

Buying Property in Montenegro is Easy

Thanks to easy bureaucratic system in Montenegro, real estate transactions are operating very fast. All you need to do is to go to any notary for title transactions and you can get the keys to your new home. The property transfer tax is only 3% and must be paid within 15 days of purchase. The average cadastral costs are around 15 Euros.

The tax value of the property to be purchased is determined by the local municipality. The deposit amount given to the seller to initiate the transactions varies from 5000 to 10,000 Euros.


In Montenegro, some banks provide home loans to foreign investors. Depending on the institutions, the longest maturity is 25 years and the maximum amount is 400,000 Euros.

Real Estate Purchase and Sale Costs:

• Seller pays realtor commissions
• Buyer pays notary costs
• Buyer pays 3% turnover tax
• Attorney fees (can be shared between the buyer&seller)
• Company establishment costs when buying land

When buying real estate in Montenegro, you should check whether the title deed has one or more partners. In particular, most of the old title deeds are inherited and sometimes there can be more than one beneficiary. We also recommend that you review the infrastructure and landscaping plans around your new home.

Obtaining a Residence Permit by Purchasing Real Estate in Montenegro

The Montenegrin government gives residence and work permits to foreign investors who purchase real estate in order to promote the country's economic development. Settlement in Montenegro will not be this easy in the future. There is only one requirement to take advantage of this law and that is to purchase a residential real estate (no commercial estate or plots are allowed). There is no set limit for the amount you have to pay for the house investment, in other words, no minimum amount is required for a residence permit. You can buy a house at any price and get a residence and work permit in Montenegro. Your permits are renewed annually.

Since Montenegro is a newly developing country, you can be sure that you will not be able to find residence and work permits with these terms anywhere in Europe.

The Real Estate Bought in Montenegro Increases in Value Every Day

The steady 8% raise of house prices in Montenegro on a yearly basis ensures that the real estate you buy will soon gain value. The suburbs of Montenegro gain value almost every day due to the small number of available residential properties. These areas contain probably the most beautiful beaches of the Adriatic sea.

It is also famous for its historic castles and cathedrals which are under special Unesco protection. Apart from the residential type, there are also many foreign investments as shops, restaurants and touristic facilities.

Since 2014, real estate prices in Montenegro have started to perform better than regional and international real estate markets. 24% of real estate buyers are from Eastern European countries who usually buy residential units for housing needs, 45% are from Northern European countries and they mainly buy for both housing and renting, and another 25% are from various countries who buy real estate for investment purposes.

There is a decrease in the m2 area of the residential units sold as the construction sector develops in Montenegro. In other words, the newly built apartments are smaller in size.



Montenegro Will Be an EU Member Soon

Another advantage of buying real estate in Montenegro is EU membership, which is expected to be approved soon. Once the country gains full membership in the European Union and joins the Schengen Union, you will be able to visit all EU countries only with your residence card without the need for a visa.

The membership that is expected to take place in 2021 will bring many high standards to Montenegro. Foreign investors are positively affecting real estate prices with high demand since they predict that the prices will increase much faster after EU membership. The sooner you buy real estate in Montenegro, the more profit you get.

High Rental Income in Montenegro

The untouched beaches with mild Mediterranean climate attracts a large number of tourists from Europe, USA, Turkey and the Middle East. The hotels in the south are inadequate for millions of tourists visiting the country especially during summer. Tourists rent seasonal houses when they cannot find hotels and this causes the rental prices to increase. If you wish, our company can manage all the rental transactions of your real estate investments in Montenegro on behalf of you.

Montenegro's Geographical Advantage

Montenegro is a natural wonder with its untouched ecological structure. Thanks to this geographic advantage, a significant number of foreigners buy homes for different purposes from various regions of the country. Montenegro provides exceptional rates for sea holidays when compared to other Mediterranean countries. For winter sports, you can find beautiful places in the northern parts which resembles Switzerland. Montenegro is one of the few places where both winter and summer sports can take place side by side.

Skadar lake which is located between Montenegro and Albania, covers a huge area of 370 km2. This place is a wonder of nature that you don’t see everyday. Luxury villa sites are in demand around Skadar lake which is famous for its water sports like rafting. Wine, liqueur and honey production is also highly developed around this area.

Southern Montenegro means a summer house for the citizens of many neighboring Balkan countries. All the towns and cities in the south, especially Kotor, Tivat and Budva, offer impressive summer holiday opportunities with their geographic features and historical monuments.

Rome is only 1 hour away, and there are flights from almost every European capital to Montenegro every day. Montenegro acts as a magnet for real estate investors in the middle of the Balkans with its unique location where you can reach from all European centers in maximum 2 hours.

It is very difficult for neighboring countries to compete with Montenegro in terms of real estate because of the geographical aspects of the country. The International airport in the capital city Podgorica transports thousands of visitors every day from its European hubs. Tivat has the country’s second international airport which is practical for tourists directly coming for southern cities.

Getting Montenegro Citizenship by Purchasing Real Estate

You can get a residence and work permit within 21 days when you buy real estate in Montenegro. There is no set minimum limit for this process. But if you want to get citizenship directly, you can benefit from a new right with a limited quota of 2000 people.

Montenegro Citizenship Requirements:

• Buy 100,000 Euros worth of Montenegrin State Share
• Buy € 200,000 worth of real estate from the northern part of the country
• Buy € 450,000 worth euros real estate in the country's southern parts

A notarized passport and a judicial registry copy should be prepared for the application.

Social and Education System in Montenegro

The Montenegrin education system is very advanced since it was established during the former Yugoslavia. Training is provided for almost every professional group in universities. Families can also choose private schools that train students in English language. Montenegro health system is well developed and it contains both private and public hospitals. You can benefit from all public hospitals free of charge as long as your insurance premiums are paid. Living conditions are much affordable than most EU countries. All of these social, economic and educational features ensure a steady increase in property prices in Montenegro. Home ownership in Montenegro is a privilege and a smart long term investment.

Montenegro Property Prices are Advantageous from Neighboring Countries

It is possible to find impressive real estate overlooking to the Adriatic coast in Croatia which is located right next to Montenegro. However, Montenegro is certainly more advantageous when you compare the real estates for sale in both regions in terms of Euro / m2. Housing prices start from 3,450 Euros in the famous Croatian city of Dubrovnik2. In Kotor, the requested price for similar real estate is only 2,2250 Euros.

You can get detailed information from us to take advantage of Montenegro’s profitable real estate market. We are here with our professional team to meet all your needs in Montenegro; from sightseeing tours to financial consultancy, legal advice, residence permit and citizenship applications. Feel free to contact us whether your goal is to establish a company or to obtain a property analysis.