Buying Property In Montenegro – Here are 10 Reasons Why You Should
Thinking about buying property in Montenegro? I have fallen in love with this small Adriatic country and its real estate diversity. You’ll find everything from coastal apartments with sea views to mountain homes surrounded by nature. The country’s mix of modern developments and historic charm gives you plenty of choices, whether you want a vacation home, rental investment, or a permanent move.
In this post, I’ll list my top 10 reasons that make Montenegro’s property market so appealing.
Read more on Montenegro in my other posts:
- How to Buy Property in Montenegro as a Foreigner
- Montenegro Real Estate Market Guide (from an Expert)
- Buying Property in Montenegro – my Honest Experience
- Apartment Renovation in Montenegro: Before & After Transformation Guide
- Property Prices in Montenegro: an Expert Overview
- Montenegro Residency by Buying Property (2026 Guide)
- Is Montenegro a Good Place to Live in 2026
- How to Rent Out Your Montenegro Property
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Table of Contents
10 Reasons Why You Should Buy Property in Montenegro
Buying property in Montenegro gives you access to a growing European real estate market, affordable coastal and mountain homes, and a simple buying process for foreigners. You also benefit from low taxes, EU integration progress, high tourism demand, and a lifestyle that blends natural beauty with modern comfort.
1. Montenegro’s Market Growth and Strong Investment Potential
Montenegro’s real estate market has expanded steadily over the past decade. Property values in cities like Budva, Kotor, and Tivat have risen as more foreign buyers seek vacation homes and investment properties. Most of these foreign buyers, including myself, are keen to stay away from the overly popular European holiday destination in Spain, Greece, France and Italy.
With a property in Montenegro in your back pocket, you can count on stable rental yields despite the price increases. As an investor, you can benefit from short-term holiday rental opportunities or Airbnb. Other proven successful investment options are property flipping (buying a property at a relatively low price, then renovating it before selling it at a profit) and buying land for new developments.
Montenegro’s government continues to promote real estate development through infrastructure projects and foreign investment incentives. The country’s growing economy, stable currency (the euro), and tourism-driven demand make it attractive for investors.
2. Competitive Prices with Upside
Compared to Western Europe, property prices in Montenegro remain relatively low. You can buy coastal apartments or mountain villas for much less than similar homes in Italy, Croatia, Greece or France.
Lower entry costs mean you can invest in prime locations without overspending. Many buyers see this as a chance to enter an emerging market before prices rise further. Buying inland or in secondary coastal areas may give you a strong chance of growth in the next few years and decades.
As tourism and infrastructure improve, property values are expected to increase further. This combination of affordability and appreciation potential gives you a strong reason to consider buying now rather than later.
3. EU Accession & SEPA Integration
Montenegro is a candidate for European Union membership, expected to complete in 2026 or 2027, and continues to align its laws and financial systems with EU standards. This process helps improve transparency, property rights, and investor confidence. The EU membership will boost property prices by 20 to 40%.
The country’s integration in the Single Euro Payments Area (SEPA) in 2025 already allows easy euro transactions, reducing banking costs and currency risks. You can now transfer funds and manage property-related payments within the EU system more efficiently.
If you are buying from outside of the EU, then read my blog post on how I used Wise to avoid losing money when making international money transfers. Head over to my Resources page for more useful recommendations for your property purchase process.
4. Easy Foreign Ownership & Residency
Foreigners can buy property in Montenegro with few restrictions. You can own land, apartments, or houses in your name, and the purchase process is straightforward and transparent. You don’t need any residence permit or citizenship to buy property.
The government also offers residency options for property owners. Buying real estate can help qualify for renewable residency which grants access to healthcare and education.
This openness to foreign buyers sets Montenegro apart from many European markets, where ownership rules can be complicated or restrictive.
5. Favorable Tax Environment
Montenegro offers one of the lowest tax rates in Europe. The personal income tax rate is flat at 9% or 15%, and property taxes are typically under 0.5% of the property’s value.
There is no inheritance tax for direct descendants. Property transfer tax and capital gains tax is modest compared to other EU countries. If you are looking to invest in a tax-efficient location, then Montenegro is appealing, both if your property is for personal use and for rental income.
6. Growing Demand & Market Liquidity
Tourism growth and strong international buyer interest continue to drive property demand. Rental properties in coastal towns like Budva, Bar, and Herceg Novi often stay booked during the long summer season.
High demand improves liquidity, meaning you can sell or rent your property more easily. A mix of local buyers, an increasing number of full-time expats, and investors keeps the market active throughout the year.
7. Booming Tourism & Digital Nomad Appeal
Montenegro’s tourism sector remains one of the strongest in the Balkans. Its Adriatic coastline, national parks, and cultural sites attract millions of visitors each year.
Short-term rentals can generate strong returns, especially in popular destinations like Kotor Bay and Budva. Many owners use their property part-time and rent it out the rest of the year.
The country also appeals to digital nomads thanks to affordable living costs, good internet access, and visa-friendly policies. This trend supports year-round rental demand beyond the tourist season.
8. Ongoing Infrastructure Developments
Montenegro continues to invest in roads, airports, and utilities to support tourism and urban growth. The new Bar-Boljare highway connecting the coast to the north shortens travel times and opens access to inland areas. Airport expansions are planned in both Tivat and Podgorica.
Improved ports and marinas attract yacht owners and boost coastal property values. Porto Montenegro and Luštica Bay already feature some major luxury developments. Finally, expanding energy and telecom networks make rural and mountain areas more livable.
9. Diverse Property Types & Locations
You can choose from a wide range of properties, from affordable apartments to luxury villas. Coastal apartments offer sea views and rental potential, while inland homes provide quiet retreats surrounded by nature.
Popular areas include Budva for nightlife, Kotor for history, Tivat for luxury living, and Žabljak for mountain scenery. Each location offers different price ranges and investment opportunities. Some undervalued emerging areas with growth potential are Herceg Novi, Bar and Ulcinj.
10. Quality of Life
Montenegro offers a relaxed Mediterranean lifestyle with clean air, scenic landscapes, a mild climate and friendly communities. You can enjoy outdoor activities like hiking, sailing, and skiing within short distances.
Healthcare and education standards continue to improve, and the cost of living and taxes stay lower than in most Western countries.
Buying Property in Montenegro: Frequently Asked Questions
Buying real estate in Montenegro is becoming more popular among international buyers. You’ll find clear property laws, simple ownership rights, and a market that’s still more affordable than many parts of Europe.
Can foreigners buy property in Montenegro?
Yes, you can buy property in Montenegro even if you’re not a citizen. Foreign individuals and companies can own houses, apartments, and commercial spaces without restrictions. The only limitation applies to agricultural land and properties close to national borders, which usually require setting up a local company.
How much is the average price of a house in Montenegro?
Property prices depend on the region. Coastal areas like Budva, Kotor, and Tivat are the most expensive, while inland towns and mountain regions are more affordable.
| Location | Average Price (EUR/m²) | Typical Property Type |
|---|---|---|
| Budva | 2,500–3,500 | Coastal apartments |
| Kotor | 2,000–3,000 | Old town homes |
| Podgorica | 1,200–1,800 | City apartments |
| Northern region | 800–1,200 | Houses and land |
New builds and waterfront homes cost more, while older or rural properties can be much cheaper. You can often find a small apartment in Podgorica for under €100,000, but luxury villas on the coast can exceed €1 million.
Why are millionaires moving to Montenegro?
Montenegro attracts wealthy buyers for its low taxes and favorable business climate. The country has no inheritance tax and offers one of the lowest corporate tax rates in Europe at around 9%.
The lifestyle also appeals to high-net-worth individuals. You get a mild Mediterranean climate, scenic coastlines, and easy access to both the EU and the Balkans.
Many millionaires buy property in Porto Montenegro or Luštica Bay, known for luxury marinas and private residences. These developments offer privacy, security, and modern infrastructure.
Conclusion
Buying property in Montenegro gives you access to a growing real estate market that still feels approachable. You can find options from modern coastal apartments to quiet mountain homes, depending on your lifestyle and budget.
Prices vary a lot by location.
| Area | Typical Price per m² | Notes |
|---|---|---|
| Coastal (Budva, Kotor) | €1,500–€3,000 | Popular with tourists and investors |
| Inland towns | €1,100–€2,000 | More affordable and quieter |
| Luxury areas | Up to €10,000 | Premium properties and marinas |
The Montenegro real estate market has shown steady growth, with many experts expecting prices to rise around 5–6% annually through the next few years. That makes it appealing if you want both a vacation home and a long-term investment.
You’ll also benefit from relatively low taxes and a simple buying process compared to many other European countries. If you plan carefully and research local regulations, you can easily find a property that fits your goals and budget.
