Buying Property in Montenegro in 2025: Complete Guide for Foreign Buyers & Investors

Buying Property in Montenegro in 2025: Complete Guide for Foreign Buyers & Investors

Montenegro is no longer a hidden gem, it’s a rising star in European real estate. Whether you're a first-time buyer, an investor, or relocating for the views (and taxes), this guide walks you through everything you need to know to safely and smartly buy property in Montenegro in 2025.

Why Buy Property in Montenegro?

• Breathtaking Adriatic coastline, medieval towns, and scenic mountains
• Foreign-friendly property laws
• Favorable tax environment
• EU candidate status with increasing demand from international buyers
• Solid rental yields in tourism-heavy locations

Can Foreigners Buy Property in Montenegro?

Yes — foreigners can purchase apartments, houses, villas, and commercial properties. However, there are restrictions on acquiring certain land types (e.g., agricultural land or large undeveloped plots over 5,000 m²) unless tied to a residential project.

Best Places to Buy Property in 2025

Kotor – UNESCO heritage city with excellent rental potential and historic appeal Tivat – Luxury marina district (Porto Montenegro) with strong demand from high-net-worth buyers Budva – Beachfront real estate with vibrant nightlife. Great ROI for short-term rental investors Herceg Novi – Affordable coastal option with growing infrastructure and tourism

Step-by-Step Guide to Buying Property in Montenegro

1. Find a Property – Browse listings or work with a licensed agent
2. Legal Check & Due Diligence – Hire a lawyer to validate ownership, check for encumbrances, and confirm registry
3. Reservation Agreement + Deposit – You’ll typically pay a 10% deposit to secure the property
4. Tax ID Registration (TIN) – Foreign buyers must register a tax ID in Montenegro
5. Sign Final Contract with Notary – All property sales are notarized and signed in front of a public notary
6. Register Ownership – This final step makes the buyer the legal property owner in the Montenegrin cadastre

Taxes & Fees

• Transfer Tax: ~3% of the purchase price
• Notary & Legal Fees: 1–3% depending on complexity
• Annual Property Tax: ~0.1–1% based on municipality
• Agent Commission: Often paid by buyer (3–5%)

Common Mistakes to Avoid

• Buying without legal verification
• Failing to register the final deed
• Underestimating taxes and hidden costs
• Purchasing in restricted land zones without clearance
• Not using a local real estate expert

Is Now a Good Time to Buy?

Absolutely. With real estate demand rising, Montenegro preparing for deeper EU integration, and tourism at record highs, buying in 2025 positions you ahead of the curve — especially in premium coastal regions.