A hidden gem on the Adriatic coast which emerged as one of the most attractive real estate destinations – Montenegro. With stunning natural landscapes.With the thriving tourism industry, and investor-friendly climate, Montenegro providers foreign buyers with excellent opportunities to invest in the country’s rising real estate market. In this short guide, we will try to present you with real opportunities and risks for foreign buyers which will provide you with essential insight for foreign buyers when looking up to purchase a property in this more than captivating country.

Montenegro Effect: The Allure of Montenegro

Unlike any other country you will find hidden in Mediteranean,  this tiny gem has to offer you so much diversity ranging from sunkissed beaches, majestic mountains to charming historical towns. Once you get to see the country where it seems like time lapses, you will understand why Montenegro is one of THOSE countries. The coastal allure of ravishing nightlife and shining lights of Budva, tranquility trapped in the stones of Lake Skadar, and the breathtaking Bay of Kotor are just a couple examples of the most picturesque places in Montenegro as one of the most entrancing destinations for the newest and highest real estate investments. With this unique blend of adventure and relaxation which mixes vibrant lifestyle and cultural heritage, Montenegro has to offer you more than you have ever been able to grasp.

Investor-Friendly Environment: A Crib for Billionaires

Montenegrins have been aware of the potential their country beholds for quite some time now and it is safe to say that they have made a couple of crucial moves when this is concerned. Namely, Montenegro, as a country, has implemented some measures that are meant to attract foreign investments which make it an investor-friendly destination. This country usually offers tax incentives, favorable ownership regulations, and streamlined procedures for foreign buyers. Moreover, Montenegro’s adoption of the euro as the currency contributed to stability and significantly reduced the risks for international investors.

A Home to Booming Tourism Industry

For years Montenegro survived solely on tourism which eventually led to striking tourism development. Truth be said, Montenegro has experienced a significant surge in tourism in the past years which created a thriving market for all real estate investors. This country’s cultural and historical heritage, which is coupled with stunning coastlines combined with outdoor activities, started to attract visitors from around the world and is even listed as one of the dreamiest destinations, especially for people arriving with yachts. So, if you are thinking like a reals estate investor, you will notice how you, as a property owner, can capitalize on the lucrative short-term rental market and make some hefty returns on your real estate investments.

Attractive Investments: Affordable Property Prices

When compared to some other European destinations, Montenegro offers the most affordable property prices which makes it a perfect investment opportunity. Foreign buyers are offered a couple of choices and they can even choose from a very wide range of properties. Some of them include apartments, villas, and lending for development for very competitive prices. This enormous affordability and potential for future growth in property values makes Montenegro a very attractive place for reals estate investors from all over the world.

Real Benefits of Purchasing Real Estate Property in Montenegro

Us pointing out the real natural beauty of Montenegro is not solely for the purpose of a unique experience but for some other reasons as well. Investing in real estate in Montenegro offers a unique opportunity for foreign buyers to capitalize and monetize the country’s natural beauty, very favorable investment climate, and booming tourism industry. Combined with a very affordable property process and straightforward purchasing processes, Montenegro is one of the most attractive real estate markets for the individual seeking rewarding and profitable investments.

Purchasing a Property in Montenegro

As we have previously mentioned, real estate purchase in Montenegro is characterized by a straightforward purchase process and for you to be successful, you need to follow some of the basic steps:

• Engage with the local real estate agents: for you to find the best property, the one that will suit your needs the best, you should cooperate with real estate agents who are experienced in working with foreign buyers. To this end, their expertise and local market knowledge will help you in finding a property that will satisfy multiple purposes.
• Conduct Due Diligence: you should perform thorough due diligence on the property and ensure the legal status, absence of any encumbrances, and ownership rights.
• Sign the Purchase Agreement: You should negotiate the terms and conditions of the purchase with the sellers and prepare a detailed agreement before signing. In addition, you should let your lawyer have a complete review of these agreements.
• Notarization and Registration: the purchase agreement needs to be notarized by a Montenegrin notary public.
• Payment and taxes: you should arrange the payment of the purchase price in accordance with the agreed terms. In addition, you need to be prepared to cover the Property Transfer Tax as well as any other associated notary fees and administrative costs.

Potential Risks of Investments

Just as with any other reals estate market, property prices in Montenegro can be subject to fluctuations because of the really fast changes in economic conditions, global factors, and political stability. On the other hand, a lot of people who are coming to Montenegro and are preparing to invest in real estate underestimate the regulatory challenges. Foreign investors need to be familiar with the regulatory framework in Montenegro and that there are some things to be covered such as ownership rights, tax laws, and some potential restrictions. Lastly, when you are choosing the property or land in Montenegro, you need to choose the properties that are not built in overdeveloped places near coastal areas which may have a negative impact such as oversupply and poor rental income potential.

Montenegro, because of its potential, indeed makes it one of the most attractive real estate markets, and for so many good reasons. However, before you dive in and start researching available properties in this hidden gem, make sure that you have done thorough market research and that you, as an investor, meet the necessary, local real estate requirements.