Buying property can be attractive due to rental yields of 5–8%, relatively affordable cost of housing in Montenegro compared to EU markets, and the possibility of obtaining a residence permit. At the same time, rental income is highly dependent on seasonality, which should be taken into account.
For a single person, a comfortable monthly budget starts at €1200–1500 in Podgorica. This level of spending typically covers rent for a modern one-bedroom apartment, utilities and internet, groceries, public transport, and regular dining out.
In coastal cities such as Budva and Kotor, a comfortable lifestyle usually requires €1500–2000 per month. For couples, a comfortable monthly budget ranges from €1800 to €2400, depending on location and housing choice. Families with one child typically need €2200–3000 per month, while families with two children should expect expenses closer to €2600–3500.
When buying property in Montenegro, the main tax is the property transfer tax. It is charged at a fixed rate of 3% of the property value and applies to all resale properties. For new developments purchased directly from a developer, VAT at 21% applies instead. This tax is usually already included in the listed price.
Buying property in Montenegro allows foreigners to apply for a temporary residence permit. The permit is issued for one year and can be renewed annually as long as ownership is maintained. After five years of continuous residence, it is possible to apply for permanent residence. There is no officially set minimum investment amount, but in practice it is recommended that the property value starts from €100,000.
Foreign buyers need a valid passport, a tax identification number issued in Montenegro, a notarized purchase agreement, proof of the source of funds, and, if required, a visa.
In popular cities such as Budva, real estate prices in Montenegro range from 3000 to 5000 €/sq m. In Kotor, prices are typically 2500–4000 €/sq m. In Tivat, they range from 3500 to 6000 €/sq m. Podgorica remains more affordable at 2000–2500 €/sq m. Over recent years, price growth in coastal areas has reached 18–49%. Villa prices are higher and can reach up to 8000 €/sq m in prime locations.
The best investment opportunities are located in coastal cities such as Budva, Kotor, Tivat, and Herceg Novi. Buying property in these areas can generate gross rental yields of 5–8%.
