Market Insights and Demand for Property in Montenegro

Created05.10.2023, 09.00
Updated14.10.2023, 16.52

International companies, property investors, and developers have been following Montenegro for a while, and there has recently been an increase in activity. The data shows that the real estate market in Montenegro is increasing in value without slowing down.

So, for those looking for profitable investments, the present and future of the Montenegrin property market, as well as the opportunities it offers for investors, have been extensively examined by TEKCE experts in this article.

Is It Worth Investing in Montenegro Real Estate?

Is It Worth Investing in Montenegro Real Estate?Definitely. It appears to be simple, but Montenegro guarantees what investors value the most: stability! Due to its advantageous political climate and dedication to ensuring a safe and harmonious environment for all investment objectives, Montenegro can provide peace and stability to investors.

The country guarantees a dependable and secure environment for companies to pursue their business goals, thanks to its stable administration and emphasis on encouraging foreign investment. So much so that its most recent Fragile State Index is 57.9, a satisfactory number.

Moreover, the IMF predicts that Montenegro will have a growth rate of 3.2% by the end of 2023 and 3% by 2024. Its economy is estimated to grow by 13.8% over the next five years, resulting in an average GDP growth rate of 2.8%.

For real estate investors, the anticipated sustainable growth rate is encouraging since it signals a continuous rise in demand and property values over the long term. Accordingly, buying property in Montenegro can offer new purchasers the chance to profit from capital growth as well as a steady return on their investment in the future. Moreover, Montenegro promises a rapid return on investment with luxury projects and yacht tourism.

As a result, the answer is yes; Montenegro properties are worth investing in. Investors are guaranteed a certain profit and prestige in the country's real estate market. They will be in a highly profitable position if they act quickly while real estate prices in Montenegro are still budget-friendly.

Price Insights in Property Investment in Montenegro

Price Insights in Property Investment in MontenegroGiving clear pricing may not produce accurate results because it differs widely based on the region, the number of rooms, the project, the house features, and, if the property is in the compound, the compound features. But investors may now be confident that they are in one of Europe's most affordable countries when it comes to making investments.

Thinking strategically about your investment goals and the home features you want is important since, as the previous title indicated, property values will rise in the next years. It is always ideal to make your dream purchase while it is still within your budget.

Looking at the TEKCE portfolio, the starting price for a premium apartment in an all-inclusive project as of October 2023 is roughly 300,000 Euros. Of course, these costs could increase for seaside properties, penthouses, or villas. Speaking with TEKCE experts will allow investors to learn about hot deals even before they are published and take early action.

What Are the Process and Legal Requirements for Investing in Real Estate in Montenegro?

What Are the Process and Legal Requirements for Investing in Real Estate in MontenegroForeign investors can easily buy and invest in real estate in Montenegro. The conditions are not harsh or difficult to meet. In general terms, after the desired real estate is selected, an agreement is made with the seller, and a reservation agreement is signed by paying a certain fee. Then comes the procedure for creating a bank account and filing taxes.

Finally, the sales contract is signed in the presence of a notary, and the title deed transfer is done at the Land Registry and Cadastre Directorate. The buyer receives the List Nepokretnosti (certificate of ownership) within an average of 7 days.

There is currently no citizenship program such as a golden visa for foreigners in Montenegro, but they can apply for a permanent residence permit. As property ownership continues, the residence permit is renewed every year. The important point to note here is that you must live in the country for 11 months of the year. You can apply for citizenship after a certain period of time.

You can get more information on How to Buy a Property in Montenegro as a Foreigner page and contact TEKCE experts directly to check your eligibility.

What Are the Tax Implications of Buying Property in Montenegro?

What Are the Tax Implications of Buying Property in Montenegro?Regarding real estate ownership, taxes vary depending on whether you buy second-hand or new real estate. The main taxes you must pay are VAT, property transfer tax, income tax, and annual property tax. The page Property Purchase Costs in Montenegro consists of all tax fees.

Beginning in 2022, Montenegro put into place a tax reform, which you will be responsible for if you receive a permanent residence permit, in preparation for its EU membership. Individual and corporate income are now taxed on a progressive basis. Fortunately, tax rates, ranging from 9 to 15%, are still rather low.

Additionally, Montenegro introduced a 700 Euro non-taxable salary percentage. Among all European countries, it is the highest. The mandatory health insurance contributions were terminated. The result is a reduction of 1.2 to 1.9 times in the tax burden on salaries, including income tax and social contributions.

What Are the Most Popular Areas for Real Estate Investment in Montenegro?

Budva, Kotor, Tivat, Bar, and Petrovac are the favorites of investors for buying real estate in Montenegro. All promise the best returns on investment for different strategies and purposes.

Budva is the most popular coastal town on the Adriatic Sea. Investors have a large selection of villas, flats, and commercial buildings to choose from, many of which are close to the coastline. You can generate rental income and support the expansion of your business, thanks to the significant influx of tourists that the area attracts.

What Are the Most Popular Areas for Real Estate Investment in Montenegro?Bar and Petrovac are located on the seaside. Their distinguishing qualities include being places where you can completely experience local life and appreciate the tranquility of green and blue. They are two of the most desirable places to live in Montenegro.

The Bay of Kotor is well known and regarded as one of the most stunning. It is also among the best locations for purchasing real estate, particularly those with a sea view. The region's historic structures are another standout feature. They are so stunning that they are part of a UNESCO World Heritage Site. Tourists often make it one of their first stops. That’s why it is a suitable location for Airbnb and hotel management.

The address of luxury and prestige is Tivat. Here, you may find luxurious Montenegrin real estate in tune with nature and have all the amenities in their expansive natural gardens. In the European real estate market, they are often seen as a premium kind of investment.

TEKCE's customer system offers investors a large selection of benefits while simplifying their tasks. Contact TEKCE professionals via phone or email for additional information about the Montenegro market.


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