Real Estate | Montenegro
Overview
Over the past 15 years, local real estate practitioners have enjoyed watching Montenegro emerge as a key second home and property-investor market in the Mediterranean. The Montenegrin real estate market is still an emerging market with a great deal of potential for capital growth, and it has a number of favourable benefits. Montenegro has low real estate tax rates, and a successful citizenship by investment program centered around new hotel developments, which are all helpful in the development and advancement of the real estate market in the country.
Holding period of real estate: None
Minimum real estate investment: Not Applicable
Type of ownership: Freehold ownership
Rental income opportunity: From 3%
Are there any restrictions on the acquisition of property in Montenegro by foreign buyers?
There are no legal restrictions on foreigners buying property in Montenegro
How can immovable property in Montenegro be acquired?
Immovable property in Montenegro can be acquired locally or remotely (that is, it is not essential to be in the country at the time of acquisition). Property can be purchased via a certified Power of Attorney, wherein a representative may complete the entire purchase procedure on the applicant’s behalf.
Does the applicant need to open a bank account in order to purchase property, and if so, what is the procedure?
The buyer is not obliged to open a bank account in order to purchase property in the country.
What kind of returns can be expected from property investment in Montenegro?
The net yield average is 4,5% in Montenegro for property investments.
What kind of returns can be expected from property investment in Montenegro?
Depending on the type of property, when the estate is fully operational, foreign investors could expect around 4% for smaller premises such as apartments or townhouses and duplexes.
How is rental income taxed?
Rental income tax is fixed at 15%.