Investments in Montenegro's tourism business
Trends and prospects
ㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤ Montenegro ranks second in the ranking of the best countries for investment, according to the American company Remote Ventures. Last year, net foreign investments amounted to € 782,000,000 — the second highest amount since Montenegro’s independence in 2006.
Realized investments in fixed assets in Montenegro, according to the country’s Statistics Office, amounted to 820,000,000 € last year, which is 7.7% higher than in 2021.
According to the data of the Montenegrin Central Bank for Foreign Direct Investment, in the first half of 2023, the most active foreign investors were citizens of Russia, Serbia, Switzerland, Turkey, Germany, Cyprus, UAE, USA and Austria.
(1)
The Constitution of Montenegro protects the right to private property, including on equal legal grounds — foreign investors.
(2)
The country’s currency is the euro, which unlike the local currency is not subject to devaluation and is a certain guarantee when reselling real estate in a few years.
(3)
Tax rates on investments and business are lower than in other European countries. Personal and corporate income taxes are 9%, VAT is 21%, and it is only reported if annual turnover exceeds 21,000 €.
what attracts investors?
(4)
Montenegro is on the list of candidates for EU accession. According to forecasts, the country will receive the status in the next five years.
(5)
On the basis of opening a company and buying real estate, including commercial real estate, it is possible to obtain a residence permit.
The most promising investment projects are related to tourism and real estate. The flow of tourists to Montenegro is growing from year to year. According to Monstat data, the number of reservations in hotels, hostels, pensions and other options for collective accommodation of tourists in the first seven months of this year exceeded the same figure for the same period last year: 1,797,865 against 1,310,614. Among the leading cities are Budva, Herceg-Novi, Ulcinj, Bar and Kotor.
According to the Minister of Economic Development and Tourism of Montenegro Goran Djurovic, in the first six months of 2023, the income from tourism amounted to 453,000,000 €, which is a record result: 90% more than in 2022 and 78% more than in 2019.
The growth trend was subtly picked up by large foreign investors. Dubai Investment Corporation has invested in the construction of the premium resort Porto Montenegro. Qatari Diar, established by the Qatar Investment Authority, is spending over € 250,000,000,000 to build an extensive resort complex in Tivat. The Egyptian company Orascom, in cooperation with the government of Montenegro, has built the luxury resort village Luštica Bay.
ㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤㅤEven with much more modest investment opportunities than the giants of the tourism industry, in Montenegro there is an opportunity to buy a ready-made tourist object — a mini-hotel, hotel or apart-hotel. Stable income from such a business will be 5−8% per annum. We will be able to calculate a more precise profit by selecting a specific object for your request.
Even with much more modest investment opportunities than the giants of the tourism industry, in Montenegro there is an opportunity to buy a ready-made tourist object — a mini-hotel, hotel or apart-hotel. Stable income from such a business will be 5−8% per annum. We will be able to calculate a more precise profit by selecting a specific object for your request.
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