Pros and cons of buying real estate in Montenegro

for foreign citizens

Montenegro is famous for its nature and unique landscapes. There are mountains, lakes, rivers and the sea. There are dozens of blue flag beaches, national parks, hiking trails and even natural areas included in the UNESCO World Heritage List. Buying real estate in Montenegro, you can enjoy these beauties every day. Or make an exceptionally profitable investment, betting on the country’s tourism potential.

There are already many hotels, restaurants, stores, entertainment, historical monuments, sightseeing agencies and car rental companies. Their quantity and quality will only grow. Plus ambitious projects of companies from Qatar, UAE, Canada, which are entering Montenegro with impressive investments. What is important, Montenegro is not only a summer vacation, but also winter ski resorts.

Montenegro is located in the south of Europe and is well connected to other European countries. The country itself has a well-developed transportation infrastructure. Two international airports, a railroad network, good roads. This makes it a convenient place for both leisure and business.

on the plus side

One of the main advantages of buying real estate in Montenegro is tax benefits. The government of Montenegro seeks to create a favorable environment for business and investors, so it relies on minimal government interference in an open economy, low taxes and the introduction of tax incentives. Property tax in Montenegro is one of the lowest in Europe. Now the tax rate when buying real estate in Montenegro is only 3%. However, from January 1, 2024 the tax scale will become progressive. Tax on rental income from real estate is also low.

Property prices in Montenegro are relatively low compared to other popular tourist destinations in Europe. In addition, real estate in Montenegro has the potential for price growth — it is a guaranteed opportunity to invest in real estate in order to make a profit.

Owners of residential real estate in Montenegro can obtain a residence permit. The document is issued for one year and subsequently renewed. After five years, those wishing to stay in the Balkan country for permanent residence can pass a language test and apply for permanent residence. After another five years, they can obtain citizenship.

The official language of the country is Montenegrin. This can create difficulties when interacting with locals. However, many people — salespeople, real estate agents, service staff in restaurants and hotels, and representatives of government agencies — speak English.

Montenegro is a young state that gained its independence from Serbia only in 2006, so its economy has not always been stable. The global financial crisis of 2008−2009 and the pandemic have made their own adjustments. All this certainly affects the real estate market. Today, there is an increase in real estate prices after the global recession, but so far it is being eaten up by inflation. Given the fact that the country plans to become a member of the European Union (according to forecasts in 2025−2028 years), the best time to invest in real estate in Montenegro — now.

Disadvantages of buying real estate in Montenegro for foreign citizens