A Rare Opportunity in the Mediterranean
Tivat’s luxury real estate market is growing, offering strong value compared to Monaco and other Mediterranean destinations.
Key benefits include:
Low property taxes (9%)
High rental demand with management services available
Strong year-round community and tourism appeal
Proximity to major European cities
Unlocking Montenegro’s Investment Potential
Montenegro has positioned itself as a prime investment destination, balancing economic growth with environmental preservation. With a clear focus on sustainable tourism, the country has steadily attracted foreign investment, particularly in real estate. Since adopting the Euro in 2002 and gaining independence in 2006, Montenegro has remained committed to EU accession and expanding its tourism sector. NATO membership in 2016 further boosted investor confidence, driving significant growth in the luxury real estate market.
The demand for high-end properties continues to rise, fueled by a limited supply of premium accommodations and increasing interest from international buyers. Montenegro’s Mediterranean climate, stunning Adriatic coastline, and rich cultural heritage make it an ideal location for real estate investment.
Real Estate Taxes
Montenegro offers strong property rights and a competitive tax system for real estate investors.
Real estate transfer tax: 3% to 6%, based on property value
Annual property tax: 0.25% to 1%, depending on location
Double taxation treaties: Agreements with 40+ countries to avoid double taxation on real estate income.
Buying a Property in Montenegro
Montenegro is an ideal place to live with a fairly straightforward real estate system. Buying a property in Montenegro comes with many advantages:
Since NATO's membership in 2016, the real estate sector has seen unprecedented growth due to a surge in foreign investments.
There is a low supply and a growing demand for luxury real estate properties.
The rental yield on Montenegrin property is estimated at 6% to 10%, which is one of the highest in the region.
Montenegro’s favorable tax system also applies to real estate, and land transfer, property, and capital gains taxes are lower than they are in most parts of the world.
Buying a habitable property entitles you to a temporary residence permit.
Tax on property rental income is 9%.
Return on Investment on Rental Property
Buying property in a thriving coastal destination like Tivat presents a profitable and sustainable investment opportunity. Foreign investors can purchase apartments, houses, commercial properties, and land for development under the same conditions as local buyers. Montenegro offers a secure investment environment, and major international insurance companies provide coverage for property investments.
After purchasing a property, owners can generate rental income while away from Montenegro by either self-managing rentals or partnering with a property management agency.
Certain luxury residential and tourism projects in Montenegro guarantee their buyers a return on investment of 8% per year.
With rental yields estimated between 6% and 10%, Tivat remains one of the most attractive real estate markets in the region. Its proximity to Porto Montenegro, luxury marina facilities, and ongoing high-end developments continue to drive demand, making it an ideal location for property investors.