Why Is Montenegro the Best Real Estate Location for Investments?

It is a matter of fact that there is plenty of elite and luxurious spots all over Europe where billionaires can moor their superyachts and enjoy the taste of luxury. But, this one right here is the spot they will not want you to know about. Paradise hidden in the shadows of magnificent mountains and surrounded by the endlessness of the Adriatic Sea, Forbes compares this tiny European gem to Monaco while the leading voice of global luxury Robb Report claims that it is “The Mediterranean’s New Jet Set Hotspot.” With picaresque landscapes and breathtaking fjords overlooking the water stretch to Italy, Montenegro presents one of the most attractive countries for fans of new luxury, and sure enough, the very Paradise for real estate investors.

A Country of Redefined Luxury

The majority of people have not even heard about this small Adriatic country, which regained its independence from Serbia in 2006. Moreover, it joined NATO in 2017 and has already adopted the euro as the official currency and is expected to join the EU with 2025 being the latest estimated year of integration. Plenty of analytics predicts that Montenegro will go through a groundbreaking transition and will become one of the hot spots of this part of Southern Europe and the latest results depict that foreign investors started flooding the southern part of the country. One of these projects is the widely famous Porto Montenegro located in the Bay of Kotor.


Namely, in 2007, Canadian gold billionaire Peter Munk bought a former military base and turned it into the largest marina in Southern Europe. Nowadays, properties in Montenegro are sold for millions with shopping centers that include some of the most luxurious brands such as Burberry Dior, Balenciaga, Rolex… A-listers are coming to Montenegro to move their super yachts. To this end, the Saudi royal family even moved their golden fleet mega-yacht from Monaco to Montenegro.

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Bay of Kotor quietly transformed into one of the most luxurious travel destinations for billionaires. Not to be surprised when this beautiful town has to offer you mountains behind and the Adriatic Sea at the front. Impeccable sceneries and beautiful weather is a feature of many other Montenegrin regions. Montenegro is a small but one of the most beautiful countries located on the Adriatic coasts which appeared on the political map of the world in 2006. Because of its potential, beauty, and safety, it has proven to be one of the most attractive real estate regions and the most attractive place for this kind of investment at the same time. Apart from being one of the best locations for real estate investments, Montenegro has become one of the hottest touristic spots where people from all around the world come to see and enjoy the views of black forests contrasting backgrounds of sea and mountains, picaresque city streets and old towns, and medieval villages.


Investors coming to Montenegro are mainly attracted by especially low costs of living, simple taxation systems, as well as a democratic system of public administration. An immensely important aspect for all current and potential real estate investors in Montenegro is constant economic development. However, the standard of living in Montenegro is quite low compared to some other European countries. Yet, recent growth showed impressive results when compared to some other CSI countries.

Financial Aspects of Investing in Real Estate in Montenegro

This is one of the main reasons why Montenegro is especially attractive to real estate investors as the costs of real estate in Montenegro are relatively low when compared to some other European countries, but there is notable growth every year. Besides, buying real estate property in Montenegro can be a profitable investment in the long run too.

Costs of Housing in Montenegro

Real estate prices in Montenegro can vary widely depending on the region, condition of the property, and type of property. For instance, in the capital Podgorica, prices for apartments in newly built buildings usually start from 2, 000 euros per square meter, while in some other parts such as the coastal part, there are real estates such as Vuelo Sobre price points start from 2700 euros and go up. On the other hand, prices for resale properties can be considerably lower which is directly connected to the property condition. Costs of new villas located on the coast normally start from 450, 000 euros, but can also considerably exceed this number. In addition, distance from see and other city parts can play an important role when forming the final price.


The value of real estate in Montenegro can be influenced by many different factors such as location, distance from the city center, sea view, condition of the building, availability of infrastructure, and some other factors. Hence, when you are buying real estate in Montenegro, it is essential for you to conduct a thorough market analysis and see what are the most suitable options for your budget.

Some Additional Real Estate Costs

Apart from the direct costs of buying real estate in Monetenegrom investors should also take into consideration some additional costs they should be prepared for:


  • Purchase taxes: you need to prepare for some additional costs when you are buying property in Montenegro and one of them is the tx on the transfer of ownership, which is estimated to be 3% of the value of the property. Relevant amendments to the Law on Real Estate Turnover have recently been approved by the government and parliament. Objects up to 150.000 euros – 3% tax, objects over 150.000 euros up to 500.000 euros – 4.500 euros fixed + 5%, objects over 500.000 euros – 22.000 euros fixed + 6%.
  • Property tax: in Montenegro, home and property owners are obliged to pay property tax every year. The amount of this tax may depend on the value of the object, location, and area and can start from 0, 25% to 1%.
  • Real estate maintenance costs: these costs include monthly fees for the services of company maintenance and utilities.

What Are the Real Benefits of Buying Property in Montenegro?

Buying a real estate property is not only one of the financially best ways to invest your money but it can also have some additional benefits such as the possibility of immigrating to Montenegro. Truth be said, Montenegro has one of the most attractive taxation systems in entire Europe. The real estate tax is only 0, 25% of the property value which is a very attractive offer for investments. In past years, the country showed significant economic development as well as steady growth which indicates that this country is walking on a stable economic path. All of this creates a favorable atmosphere for investors who expect their property value to increase over time.

Features of the Development of the Investment Property Market in Montenegro

Buying an investment property can be one of the best opportunities to earn yourself a stable and high income. The fact that the construction sector in Montenegro is in second place in the world in terms of development dynamics indicates that the demand for real estate in this country is very high. The majority of countries, including CIS countries, cannot be compared to Montenegro in terms of high rates of construction. This is just one of the things that make Montenegro especially attractive and interesting for investors. Another aspect of getting the most out of your Montenegro property is constant passive income which can also be channeled through tourism which is one of the main sources of profit for the country as well. So, buying a villa or apartment in Montenegro for rent can be a very profitable and long-term investment.


Buying a real estate property in Montenegro can bring up various benefits and one of them is also the opportunity for investors to immigrate to the country and ask for a permit or citizenship. This will provide the investor with some new business opportunities and ensure safe living in this beautiful country.

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