When it comes to finding the perfect place for a second home, or property to add to a current portfolio, market momentum and impressive returns make a Montenegro real estate investment an attractive option.

However, more than marketplace movements and financial dynamics need to be considered when looking to invest. A wide variety of other factors contribute to the long-term success of a property purchase overseas.

Tourism Driving Growth

Montenegro’s property market benefits greatly from its strategic location.

Within three hours’ flying time of most European capital cities, this emerging tourism destination has also become an investment destination of note.

With three international airports, visitors and residents enjoy the convenience of Montenegro – a place where leading lifestyle resorts and natural wonders are all within a short distance. As a result of this, international commentators from the property and tourism sectors expect good times ahead.

Predicting Potential

With performance predicted to accelerate still further, the eyes of the world are focused on Montenegro – a fresh destination that offers lifestyle excellence and that makes investment sense.

One of the fastest-growing tourism economies globally, Montenegro’s open-door approach to international and regional visitors is both frictionless and welcoming.

The climate is diverse, visitors enjoy the rich and proud culture, and yachting facilities are world-class. The cruise sector is another major contributor. Use of the Euro as a local currency is also very convenient, particularly for EU visitors.

The World Travel and Tourism Organisation expects Montenegro to achieve one of the fastest annual growth rates in the decade 2017-2027. Tourism is set to become the main contributor to the country’s GDP, expected to reach 31.2% of GDP in 2027.

Investing in an Apartment in Montenegro

Buy Apartments in Montenegro

These growing tourism numbers bode well for property investors, particularly those planning to invest in premium coastal apartments. 

The variety of investment opportunities in Montenegro for apartment buyers may seem bewildering, however those that focus on investments in fully-integrated coastal communities put themselves at a distinct advantage – especially when it comes to capital appreciation and the ability to secure predictable rental returns.

With tourism numbers steadily rising, and market demand as a driver, leading local property developers offer year-round property management and manage visitor rentals to boost ROI on investments made.

Waterfront and coastal apartments offer a particularly strong return on investment (per square metre), based on rising property values and recent rental return performance.

Affordability and Investment Potential

For those considering a property investment in Montenegro for the first time, many opt to invest in a fully-managed coastal apartment.

Globally, the combination of high quality build, excellent facilities, and (most importantly) a waterside location greatly increases the likelihood of impressive investment returns, over time.

The financial performance of coastal apartments in Montenegro that fit this profile is evidence that this continues to be a recipe for success.

Maintenance and Practicality

Property investors in Montenegro either regard their apartments as a second home or a buy-to-rent opportunity.

In either case, many homeowners work with residential and development partners to offer homes to tourists during both high and low seasons to cover costs and to boost their investment return.

To ensure that homes are in peak condition at all times, essential maintenance is a major consideration when choosing a property. The limited maintenance needed for apartment homes, without the challenge of tending to pools, external landscaped areas, and gardens, makes them the perfect lock-and-leave property option.

Accessibility and Community Living

Lustica Bay lifestyle
Lustica Bay lifestyle

As an apartment resident, you immediately become a neighbor and part of a community – where friends can be made and on-site facilities and amenities can be enjoyed.

Ideal for those who enjoy socializing, gatherings, events and other neighborhood activities, apartment community living offers advantages to home-owners and visitors alike, with the very best communities in Montenegro carefully curating the resident experience.

This is of particular importance to those that plan to spend longer periods of time in Montenegro.

Taxation and Investment Advantages

Montenegro is a low-tax jurisdiction, ideal for investment.

  • – 3% tax on the transfer of property
  • – 0% transfer tax when buying directly from developer
  • – 0.1% to 1% Annual Property tax
  • – 21% Standard VAT rate
  • – Average customs tax rate around 6%, 3% with EU and some other countries
  • – 0% tax on retirement income

Capital gains tax in Montenegro is a very attractive factor for investors. This is zero-rated, regardless of the sale price.

Foreign investors are also encouraged to invest freely – within any industry – and to transfer all assets, including profits and dividends. They can also acquire rights to real estate, such as commercial property, office space, residential space, or construction land.

Luštica Bay: A Town in the Making

Luštica Bay is one of Montenegro’s most exclusive coastal communities. Located on the Luštica Peninsula, this new town will have 3,000 apartments, villas, and townhouses. From fine dining, to primary schools. Facilities here are world-class, and amenities are designed to offer every resident, of every age, what they might need. Residents can also enjoy access to its seven hotels, two world-class marinas, an 18-hole championship golf course, a 4.9 km boardwalk, and five pristine Adriatic beaches. 

Flexible payment options are available to investors

If you are interested to learn more about completed or off-plan apartment options at Luštica Bay, CONTACT US to learn more.