Montenegro is a beautiful country on the Balkan Peninsula with picturesque views of mountains and warm Adriatic Sea. It is located in the Eastern part of Europe and is a former part of Yugoslavia.
The summer days are hot and cloudless, while winter is warm with some precipitants. You can find small villages, towns, and cities with many sights where you can find all the infrastructure for living and spending leisure time. The prices in Montenegro are also lower than in neighboring Croatia and Slovenia, but it is still Europe, and you can easily reach other countries. It uses the euro as a currency, is a candidate in the European Union (expected to become in 2025), and is a member of NATO.
You can come to Montenegro through two airports (Tivat and Podgorica), welcoming low-cost flights as well, by bus, car, train, or ship. All these reasons have made Montenegro a popular place for buying property for the last ten years. Moreover, the country is developing and opening modern yacht marines, aqua parks, hospitals, and schools, making long-term life more comfortable.
Tips for property purchase in Montenegro
All foreigners can purchase a property in Montenegro, but if you are interested in land, you should have a properly registered company in Montenegro. In Montenegro, there are options for new apartments, renovated, used, and required repair, as well as villas, depending on each budget and taste.
- We recommend you live for a couple of weeks in Montenegro to choose the best city and infrastructure for your property. In the country, you have a choice between the capital, Podgorica, and coastal cities – Tivat, Budva, Herceg Nova, or UNESCO-protected Kotor. If you like mountains, you may choose the second largest city in Montenegro – Niksic. The price for property is decreasing from the first to the last: Budva, Tivat, Kotor, Herceg Novi, Podgorica, Bar, Niksic.
- Before making a purchase, we suggest checking the future development of the property area.
- Do not be afraid to ask for a discount, especially if you purchase the property in the low season (from October to mid-May). Research the property market before making payment.
- After you have chosen the interesting objects, you need to contact the responsible agent. You need to check the legal status, documents, and absence of debts, as well as make an architectural survey to check the actual condition of the property. We also recommend hiring a professional lawyer with a license in Montenegro; he can verify the property ownership’s status.
- Most of the local and foreign banks offer mortgages for foreigners. The interest rate is between 3-7% for 25 years. Normally, you need to have a 10% down payment. 10% is a reservation price to the seller. Nowadays, most payments are made in non-cash form.
- Before 2022 in Montenegro, a citizenship program was offered for making investments in real estate. The new program is going to be announced in 2024 with a 2.000 limitation of applicants. While the program has not started, the conditions are the following: you may receive citizenship by investing in the development projects (450.000 for Podgorica and coastal regions) plus a 200.000 application fee. The real estate objects for your investments should be pre-approved by the government for participation in the program. In return, you have visa-free access to more than 120 countries, including European Schengen.
The purchase of real estate in Montenegro is connected with the same problems and thefts as in other countries, so please be cautious and work only with licensed and trustable agents, lawyers, and notaries.
You can read forums and ask locals for reviews. Most of the agents are part of a Real Estate Agency, which you can visit in all towns and cities in Montenegro.
Important information about property purchase
- All foreigners willing to purchase property in Montenegro have to proceed through additional checks for all countries the same.
- You can purchase buildings and the land where they are built, but only citizens can purchase forests and agricultural lands.
- If you purchase a property under construction, you need to sign a preliminary contract; in other situations, the main contract is signed. All contracts should be certified by a notary.
- You have to pay mandatory fees. You need to pay transfer tax and notary fees (starting from 3.01% of the property price). But the seller has to pay the real estate agent. If the property price is below 150.000 EURO, the tax fee is 3%. For property from 150.000-500.000 EURO—4500 EURO, you need to pay 22.000 EURO (Tax policy from 1 January 2024).
- You have to register your property within 30 working days after the contract signature in the cadastral office. A fee of 0.5% of the property’s cadastral value should be paid. Normally, the notary sends the documents for title registration after the contract signature and full payment. It takes a couple of weeks.
- If you buy a property in Montenegro, you will receive a temporary residence permit. You need to apply for it through the standard migration process.
- The purchase contract should be signed in front of a notary by the seller and buyer in person or by their representatives with power of attorney. If you do not know Montenegrin, you need to hire a licensed interpreter to translate the contract and all negotiations.
Prices on property
The price of the property does not vary significantly during seasons, as this type of purchase has been made for years. However, the agents are busier in summer than in other seasons, so for calm deals, we suggest coming in winter. The property market in Montenegro offers apartments, townhouses, villas, plots of land, and ruins (old houses for renovation). You can choose between ready properties or under construction. In Montenegro, you can also participate in actions for property.
The average price on studios (21 sq. m) in new complexes on the coast is €110.000, and one-bedroom apartment (39 sq.m) starts from €120.000. The most expensive prices are in Kotor Bay, where the price for a three-four-bedroom house is about € 300.000-4000.000. Just for comparison, the rent for a one-bedroom apartment is up to $450, and for two bedrooms, it is up to $960. But you are not guaranteed for constant rental income and popularity of your property on the market. The average price for residential property in cities on the Adriatic Sea coast is about €1.413. The prices show stable growth from one year to another.
There are many Real Estate companies in Montenegro: Savills, Montenegro Prospects, Montenegro Properties, Properstar, Tranio, Montenegro-real-estate, Sotheby’s, Christie’s (villas), and others. You can visit the office or choose the property online. For each lot, the responsible agent is assigned. You can filter all objects per price range, property type, bedroom and bathroom number, availability of balcony, gym, garage, etc. You can choose between furnished and equipped apartments or unfurnished. You can contact the agent to clarify additional details and request more photos and videos about the apartment, villa, or residence and the surroundings.
Conclusion
Current financial and market researchers have shown that Montenegro is a stable country for investments in property. You may purchase property as a summer house for your family or organize a rental business. The current rental yields show that Budva is a competitor of Porto, Istanbul, and Dublin. You can purchase apartments, villas, or land, ready or under construction. Starting from €110.000 you may find a property in the coastal city, for more budget options we recommend searching inside the country – near Nicksic. Following our advice and hiring professional agents, lawyers, and a notary, you are safe to conclude the contract for purchasing the desired property and title afterward. Property in Montenegro is a possibility of receiving residence in a European country.