Luštica Bay Peninsula

As you consider your next chapter in life, choosing a retirement destination is a significant decision. Montenegro, with its stunning landscapes, rich culture, and welcoming community, offers an idyllic setting for retirees seeking tranquility, adventure, and affordability. This guide will explore why Montenegro, and specifically Luštica Bay, should be at the top of your list for retirement.

Why Retire in Montenegro?

Montenegro is a hidden gem on the Balkan Peninsula, offering a perfect blend of Eastern and Western European influences. Its unique position, bordered by Croatia, Bosnia and Herzegovina, Serbia, Kosovo, and Albania, and just 42 miles across the Adriatic from Italy, gives it a diverse cultural tapestry. Here’s why Montenegro stands out as a retirement haven:

  1. Stunning Natural Beauty: From dramatic mountain ranges to unspoiled coastlines and UNESCO World Heritage sites, Montenegro is a visual feast. Whether you enjoy hiking, sailing, or simply basking in nature’s splendor, this country offers endless opportunities.
  2. Favorable Climate: The Adriatic coast enjoys a Mediterranean climate with warm, dry summers and mild, wet winters, perfect for year-round outdoor activities. The inland areas provide a cooler contrast, ideal for those who enjoy winter sports.
  3. Affordable Cost of Living: Compared to Western Europe, Montenegro offers a lower cost of living, making it an attractive option for retirees on a fixed income. Everything from dining out to healthcare is more affordable, without compromising on quality.
  4. Growing Economy and Stability: With a steadily growing economy driven by tourism, energy, and infrastructure, and its anticipated future integration into the EU, Montenegro offers a stable and promising environment for retirees.
  5. Accessibility: Montenegro is well-connected with two main airports in Podgorica and Tivat, and proximity to Dubrovnik Airport in Croatia. The port of Bar also provides ferry services to Italy, making travel convenient. 

Is Montenegro a Good Place to Retire?

Absolutely! Montenegro’s breathtaking landscapes, friendly locals, and relaxed pace of life make it an ideal retirement destination. The combination of its natural beauty and modern amenities ensures a high quality of life. Plus, the lower cost of living means your retirement savings can go further, allowing you to enjoy a comfortable and fulfilling retirement.


Can Brits and EU Citizens Retire to Montenegro?

Yes, both British and EU citizens can retire to Montenegro. The country’s welcoming visa policies make it straightforward for UK nationals and EU citizens to obtain residency. Here’s what you need to know:

  1. Retirement Visa: Retirees from the UK and EU need to apply for a retirement visa, which requires proof of a stable income and health insurance. This visa grants the right to live in Montenegro and access local healthcare services.
  2. Temporary Residence Permit: Initially, retirees can apply for a temporary residence permit, valid for one year and renewable annually. This permit allows for extended stays and access to essential services.
  3. Long-Term Options: For those planning to stay longer, Montenegro offers a five-year residence permit, which is also renewable. This option provides more stability and the ability to enjoy most of the privileges of Montenegrin citizenship, except for voting and holding a Montenegrin passport.
  4. Healthcare: Montenegro offers quality healthcare services, and retirees can access these services through their residency status. Private health insurance is also available and recommended for comprehensive coverage.
  5. Cost of Living: The cost of living in Montenegro is significantly lower than in many Western European countries, making it an attractive option for retirees from the UK and EU. Everything from housing to dining out is more affordable, allowing retirees to enjoy a comfortable lifestyle on a fixed income.
  6. Community and Lifestyle: Montenegro is home to a growing expatriate community, including many Brits and EU citizens. This diverse and welcoming environment ensures that retirees will feel at home and have plenty of opportunities to socialize and engage in various activities.

With its favorable climate, stunning scenery, and affordable cost of living, Montenegro is an attractive option for British and EU retirees looking to enjoy their golden years in a beautiful and culturally rich environment. Whether you are looking for a peaceful retreat or an active lifestyle, Montenegro offers something for everyone.

What is the Retirement Tax in Montenegro?

Montenegro does not have a specific retirement tax. However, retirees are subject to the same tax regulations as other residents. The country’s flat tax rate on income is relatively low at 9%, which can be very advantageous for retirees. Additionally, there is no inheritance tax, making Montenegro a tax-friendly destination for retirees looking to maximize their savings.

How Much Do You Need to Live Comfortably in Montenegro?

The cost of living in Montenegro is significantly lower than in many Western European countries. On average, a comfortable retirement lifestyle can be achieved with a monthly budget of around €1,500 to €2,000. This budget includes housing, utilities, groceries, dining out, and entertainment. Of course, the exact amount can vary depending on your lifestyle and specific location within Montenegro.

Luštica Bay: A Premier Destination for Retirees

While not exclusively a retirement community, Luštica Bay on the Luštica Peninsula offers a dynamic and inclusive environment that is perfect for retirees. It’s one of the most desirable places in Montenegro, and indeed Europe, to retire to. Here’s why:

  • Diverse Community: Luštica Bay is home to a vibrant mix of residents, including young professionals, families, and retirees, creating a lively and engaging atmosphere. The area is known for its dynamic lifestyle, with plenty of activities and events that cater to all age groups.
  • Luxury Living: The development boasts a wide range of property options, from marina apartments to golf residences, ensuring there is something for every taste and budget. The high-quality construction and elegant design promise a luxurious living experience.
  • World-Class Amenities: Residents enjoy access to fine dining, shopping, healthcare facilities, and recreational activities. The development features seven hotels, two world-class marinas, an 18-hole championship golf course, a 4.9 km boardwalk, and four pristine Adriatic beaches, ensuring there is always something to do.
  • Proximity to Nature and Culture: Luštica Bay offers the perfect blend of natural beauty and cultural richness. Whether you want to explore the rugged landscapes, enjoy water sports, or immerse yourself in local traditions, you’ll find it all within easy reach.


Retiring in Montenegro, particularly in the luxurious enclave of Luštica Bay, offers an unparalleled lifestyle of comfort, beauty, and affordability. With its breathtaking scenery, welcoming community, and robust infrastructure, Montenegro is fast emerging as a top destination for retirees seeking a serene and fulfilling life. Whether you choose to rent or buy, the investment in your happiness and well-being will be well worth it.

For more information on the properties available at Luštica Bay, visit www.lusticabay.com. Start your journey towards a dream retirement in Montenegro today!

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