Purchasing property abroad opens up a plethora of new opportunities, and Montenegro, with its beautiful landscapes and coastal towns, is becoming a popular destination among foreign investors. Lustica Bay stands out as a gem of the region, attracting with its high-quality housing, developed resort infrastructure, golf course, and private beaches, making it an ideal place for buying property in Montenegro.

However, before taking a decisive step, there are several important things to consider.

The Process of Buying Property in Montenegro

Stages of Purchase

Buying an apartment in Montenegro is a process that can be divided into several key stages. Each of them requires attention and the right approach:

  • Selection and Evaluation of Property

At this stage, it’s important to decide on the type of property (apartment, house, villa) and the region of Montenegro where you want to buy. Consider various options, study the infrastructure of the area, and its distance from the sea or city center. For example, you might choose an apartment in the tourist zone of Budva or a more secluded place in the Bar area.

  • Legal Cleanliness Check

After selecting a property, it is necessary to conduct a legal check to ensure there are no debts, encumbrances, or legal disputes associated with the property. This can be done through a real estate agency or by hiring an independent lawyer.

  • Signing a Preliminary Contract and Paying a Deposit

A preliminary contract is signed to fix the terms of the deal and the price. At this stage, the buyer usually pays a deposit (most often 10-20% of the property’s price), which guarantees that the property will be taken off the market.

  • Document Preparation and Signing the Main Contract

The buyer and seller sign the main purchase-sale contract in front of a notary. All documents should be carefully checked and prepared for this moment.

  • Registration of the Deal and Transfer of Ownership

After signing the contract, it needs to be registered at the local cadastre office for the official transfer of ownership to the buyer. This is the final stage, after which the buyer becomes the full owner of the property.

Remote Purchase

For those unable to come to Montenegro, there is an option for remote purchase through a proxy. This is convenient and practical, but requires a careful selection of an agent and detailed power of attorney documentation.


Rights and Obligations of Foreign Buyers

Are There Restrictions for Foreigners in Buying Property?

The purchase of property in Montenegro is allowed for foreigners, both on the primary and secondary market. Foreign citizens can acquire apartments, houses, villas, as well as commercial property, including mini-hotels and shops. Restrictions apply to agricultural plots and lands in national parks, as well as property located on islands and in protected areas. Also, foreigners cannot own property located in close proximity to the state border.
All foreigners, must comply with local laws and undergo a standard verification process when purchasing property. All transactions must be notarized, and the presence of a qualified translator is required when processing documents.

Is It Possible to Obtain a Residence Permit by Buying Property?

Purchasing property in Montenegro can be a basis for obtaining a residence permit. This is a significant plus for foreign buyers wishing to spend more time in the country.

Searching for Property in the Country

Choosing property in Montenegro is a process that requires time and attention. It is recommended to use the services of agencies that can help not only in selecting a suitable object but also consult on all aspects of the transaction.

However, the safest option is purchasing (selling) an apartment from a Developer. In this case, you can be confident not only in the property’s legality and transparency of the transaction but also receive special payment conditions.

Thus, in Lustica Bay, you can choose any type of property that suits you: from studios and 1-3 bedroom apartments with sea views to townhouses and villas with private territories. In 2024, the Developer offers special payment conditions: AN INITIAL PAYMENT OF ONLY 10%. The remaining part can be paid in equal quarterly payments until the property is handed over.

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Marina Village The Peaks Centrale

Choose this area if you value proximity to the sea, beaches, and yacht marina. Each residence offers stunning views of the Adriatic Sea. On sale are apartments with 1-3 bedrooms.

The most ambitious project of Lustica Bay. Here will be located Montenegro’s first golf course. The complex includes villas, townhouses with private pools, and apartments with 1-3 bedrooms.

The heart of Lustica Bay. Here, the charms of dynamic city life blend harmoniously with the tranquility and privacy of a residential area. On sale are studios and 1-3 bedroom apartments.

Property Prices in Montenegro

Prices for housing vary depending on the region, distance from the sea, and the quality of the object. It is important to evaluate not only how much the housing costs but also the potential expenses for renovation and maintenance.

According to analytics agencies, the average price per square meter in various regions at the beginning of August 2023 is:

  • – Budva: €4,1k (new buildings) and €2,9k (secondary market)
  • – Herceg Novi: €3,1k (new buildings) and €4,3k (secondary market)
  • – Bar: €2,5k (new buildings) and €2,2k (secondary market)
  • – Tivat: €3,4k (new buildings) and €4,1k (secondary market)

When buying property in Montenegro, it is important to consider not only its cost but also its investment attractiveness.

Investing in property in Lustica Bay offers significant potential for value growth. According to recent data, the cost per square meter of property in this area has increased by 97% over the last decade. Lustica Bay attracts foreign residents with its convenient location and refined lifestyle, wonderful private beaches, sailing, yachting, restaurants, and bars by the sea.

Expenses When Buying Property in Montenegro

When purchasing property in Montenegro, the buyer faces several types of additional expenses. Firstly, there are notary services, the fee for which is determined by the property’s price and cannot exceed €5,000. Additionally, state duties for obtaining a property certificate and registration in the cadastre are required, which amount to €5 and €28, respectively.

The buyer will also need to pay for the services of a court translator, the rates for which are approved by the Ministry of Justice of Montenegro. The cost of oral translation at the time of signing the contract is €50 per hour, usually one hour is sufficient. A fee of €20 per page is charged for written translation with an apostille, with the contract usually containing between six to eight pages.

When purchasing property in Lustica Bay directly from the developer, the buyer is exempt from all additional expenses, making the acquisition process more comfortable.

Property Taxes

Property tax in Montenegro is an important part of the expenses when owning property.

As of January 1, 2024, amendments to the “Real Estate Turnover Tax Law” came into effect in Montenegro, introducing a progressive tax rate when purchasing property. Now, the rate at the previous level of 3% can only be calculated for objects costing up to €150,000.

  • – From €150,001 to €500,000, the fixed tax amount will be €4,500 + 5% of the amount exceeding €150,001.
  • – From €500,001, the fixed tax amount will be €22,000 + 6% of the amount exceeding €500,001.

It should be noted that buyers of apartments in new buildings from the developer do not pay the real estate purchase tax and will not pay it. All changes only concern secondary housing. After registering ownership, it is necessary to pay an annual property ownership tax, the amount of which ranges from 0.25 to 1% of the cadastral value of the object (depending on the municipality).

Purchasing property in Montenegro is a process that requires careful approach and understanding of all legal nuances. It is an opportunity not only to acquire housing by the sea but also to make a profitable investment. It is important to thoroughly study all the pros and cons, as well as consider the peculiarities of the Montenegrin market, to ensure the transaction is successful and safe.


Do you have questions or would you like to learn more about the property options in Lustica Bay? Leave your contact details, and our representative will get in touch with you shortly to provide all the information you’re interested in. We will be by your side at every stage of finding your ideal home by the sea in Lustica Bay, Montenegro.