20 most common questions

1. What makes Montenegro an attractive destination?

C Montenegro offers a rich cultural and historical heritage, including several UNESCO World Heritage Sites: the old town of Kotor, Durmitor National Park and the Bay of Kotor, which are known for their natural beauty and cultural significance. The presence of these UNESCO sites increases Montenegro's popularity as a tourist destination and increases its attractiveness to investors. Montenegro offers a unique lifestyle with a diverse landscape that allows you to enjoy ski slopes and sandy beaches two hours away from each other. You can ski in the mountains in the morning and enjoy wine or coffee by the sea in the afternoon. The development of ski resorts and the opening of five-star hotels have improved the tourist infrastructure, and the ongoing construction of motorways optimises logistics and connections with neighbouring countries. The country's coastline boasts a mix of sandy and pebbly beaches in picturesque coves with more than 260 days of sunshine a year. Montenegro also offers an affordable cost of living, including cheap food and drink, with an emphasis on organic and traditional cuisine - a selection to suit all tastes.

2. Montenegro as a luxury tourist destination

Montenegro, a young country that gained independence in 2006, has quickly become a leading luxury tourist destination in Europe. Located on the beautiful Adriatic Sea, with convenient car, ferry and air access, Montenegro offers a strategic location that supports tourism growth. Government initiatives to develop micro-locations have encouraged investment, as evidenced by projects such as Porto Montenegro and Porto Novi, which have transformed former military buildings into world-class marinas and luxury waterfront residences. Montenegro's charm extends to iconic locations such as Sveti Stefan, where the famous Aman Resort hosts world stars and members of royal families. With the presence of well-known luxury brands including Hyatt, Mövenpick and Ritz-Carlton, Montenegro attracts an increasingly diverse category of tourists and investors each year. This growth reinforces Montenegro's multicultural society and its harmonious coexistence, offering a unique and enriching experience amidst breathtaking landscapes and rich cultural heritage.

3. What makes Montenegro an attractive investment destination for the corporate sector?

The attractiveness of Montenegro for organisations lies in its highly competitive corporate tax regime in Europe. The country offers a low corporate tax rate of 9%, one of the most favourable rates in the region. This favourable tax environment encourages businesses to set up operations in Montenegro, allowing for increased profitability and more efficient use of corporate resources. In addition, Montenegro's strategic location on the Adriatic coast provides access to European markets, making it an ideal location for companies seeking to expand internationally while benefiting from a favourable tax system for doing business.

4. Are there tax advantages when inheriting property in Montenegro?

Montenegro is characterised by a favourable taxation regime for inheriting real estate. Unlike many other countries, there is no inheritance tax in Montenegro, which offers significant savings to individuals and families involved in the property transfer process. This tax exemption increases Montenegro's attractiveness as a location for real estate investment and retirement planning, providing a favourable environment for the preservation of wealth and assets from generation to generation.

5. What is Montenegro's policy on taxation of pensions?

Pensions are not taxed in Montenegro, making it an attractive place for people who want to spend their retirement years with minimal taxes. This exemption from taxes on pensions contributes to the country's overall popularity as a place to retire and encourages foreign retirees to consider Montenegro for relocation or investment in residential property.

6. How is value added tax (VAT) taken into account in real estate transactions in Montenegro?

In Montenegro, value added tax (VAT) is usually included in the price of the property. This means that buyers do not have to pay VAT separately on top of the property price, which simplifies the transaction process and reduces the administrative burden for both investors and buyers. The inclusion of VAT in real estate transactions contributes to transparency and predictability in the real estate market, making it easier for investors to participate in real estate transactions in Montenegro.

7. What is the official currency in Montenegro?

7.

Montenegro adopted the euro as its official currency in 2002, which contributes to economic stability and offers international transactions for investors and businesses. The use of the euro simplifies financial transactions and eliminates currency risks for individuals and companies doing business in Montenegro, contributing to a favourable investment climate.

8. What is the total cost of acquiring a property?

The total cost of purchasing a property includes several items. It is approximately €450 for a notarised contract of sale (the price varies depending on the value of the property), payment for the services of an official translator into your native language, which costs from €20 per page. A court interpreter may be required for oral translation, the fee for which is approximately 50 euros. Cadastral fees are up to 50 euros. In total, these costs amount to approximately 700 euros. Optionally, the services of CMM's legal department can be used for 500 euros. These services include registration of the property in your name, transfer of utility bills.

9. What is the tax rate when buying a property from a private person?

When buying a property from a private person up to the value of 150,000 euros, the tax is 3%. For properties over 150,000 euros, the tax is calculated as 4,500 euros plus 5% on the amount over 150,000 euros. For properties over EUR 500 000, the tax is EUR 22 000 plus 6% of the amount over EUR 500 000. When buying from a legal entity, such as a developer, no purchase tax is payable.

10. How is the annual tax calculated?

Annual property tax is calculated based on several factors, including the size of the property, the age of the property, proximity to the sea, the region and the type of property. For example, the tax on a property worth 150,000 euros in Budva is currently 350-400 euros.

11. What is the range of potential return on investment (ROI) in Montenegro?

Investors in Montenegro can expect significant returns on their investments: ROI typically ranges from 6% to 12% per annum. This range of ROI is particularly attractive given the current trends in the European real estate market and Montenegro's economic growth, increasing investors' confidence in the long-term profitability of their investments.

12. How long does it take to close the transaction and to register the property in the Land Registry?

The process of transferring a property into a new name at the Land Registry usually takes between 4 and 6 weeks, which includes the submission of the necessary documents, their verification and the final registration of the ownership right. This time can be affected by the complexity of the transaction and the speed of the official procedures, and it is important to ensure that all legal formalities are correctly completed to ensure a smooth completion of the transfer of ownership.

13. How high are the costs of maintaining real estate in Montenegro?

In Montenegro, maintenance of buildings, including common areas such as staircases, corridors, lifts, car parks and other areas, is often provided by technical service agencies. The method of payment is regulated by agreement of the property owners. Maintenance costs range from 0,5 to 1 euro per square metre. In special cases where complexes have additional facilities such as swimming pools, saunas and gyms, maintenance costs can be up to EUR 2 per square metre.

14. What are the prospects for Montenegro in its relations with the European Union?

Montenegro has made significant progress towards EU accession and is expected to become an EU member state in the next few years. This demonstrates Montenegro's commitment to European integration, which can lead to improved economic cooperation, infrastructure development and expanded investment opportunities. The prospect of EU membership further strengthens Montenegro's position as an attractive investment destination in the Western Balkans region.

15. Which area of Montenegro is considered the best for investment?

Each region of Montenegro offers good investment opportunities depending on your criteria and expectations. However, some cities stand out:

Budva is often called the queen of tourism in Montenegro, as it boasts the highest investment volume and highest rental yield in the country. Whether you're looking for a cozy spot in the city center or a residential complex with extra amenities and breathtaking views, Budva and its surroundings are the ideal choice. Plus, Budva, known for its vibrant nightlife and beautiful sandy beaches, offers everyone a little piece of paradise. With its tourist centre, Budva provides a wide range of investment opportunities, from city centre properties to luxury resorts.

Tivat, home to Montenegro's first luxury yacht marina, offers a combination of elite lifestyle and traditional coastal charm. The city is renowned for its high level of service, luxury restaurants, resorts, golf courses and there is also an airport. Tivat provides a wide range of investment opportunities for different preferences and budgets.

Kotor is known for its rich traditions, culture and historical heritage, making it a popular choice among investors. The city offers many activities, from cable car rides to swimming in crystal clear water, and it is possible to enjoy delicious cuisine. With its stunning landscapes and diverse attractions, Kotor is the ideal place for those looking for a holiday home or considering a move.

16. Is there an airport in Montenegro?

There are two international airports in Montenegro, Podgorica Airport and Tivat Airport. Podgorica Airport, located near the capital Podgorica, offers flights to various European cities with national and other major carriers. Tivat Airport, located on the Adriatic coast near the popular city of Kotor, serves as a gateway for travellers visiting the coastal region, including popular tourist destinations such as Budva and Herceg Novi. Tivat Airport is particularly busy during the summer season, when numerous charter and scheduled flights connect Montenegro with cities across Europe. Dubrovnik Airport in neighbouring Croatia is a convenient alternative for travellers heading to Montenegro's coastal areas, as transfer and car rental services are available. In addition, Nikola Tesla Airport in Belgrade, Serbia, and Tirana International Airport in Albania are alternative gateways with good road links to Montenegro, providing travellers with additional options to conveniently reach the country.

17. Are there international schools in Montenegro?

Yes. International schools in Montenegro serve a growing community of expatriates and local families seeking a world-class education. These schools usually offer instruction in English and follow a prestigious international curriculum. Well-known international schools are located in key urban centres such as Podgorica, the country's capital, and Tivat, known for its active expatriate community.

The schools are characterized by a diverse student body that includes children of different nationalities, which contributes to a multicultural learning environment. They emphasize not only academic achievement but also holistic development through a wide range of extracurricular activities, including sports, arts and social activities.

18. Is Montenegro a safe country?

Montenegro is generally considered a safe country. As a member of NATO and due to its stable relations with neighbouring countries, Montenegro prioritises security and stability. The government strives to maintain a safe environment for both residents and visitors.

In recent years, Montenegro has made significant progress in improving its infrastructure and strengthening law enforcement, contributing to an overall increase in security. The country's strategic location on the Adriatic Sea, stunning natural scenery and rich cultural heritage make it an attractive destination for tourists and investors alike.

Tourists can do many activities in Montenegro, from exploring historic towns to relaxing on picturesque beaches. Investors, in turn, are attracted by opportunities in areas such as the real estate market, hospitality and renewable energy.

Current development projects in Montenegro, including infrastructure improvements and economic reforms, point to a positive trajectory for the country's future. This combination of stability, natural beauty and investment potential makes Montenegro an attractive choice for those considering travel or investment opportunities in the region.

19. Why Montenegro?

Choosing Montenegro among other popular destinations in the area offers several compelling advantages for property investors. Montenegro boasts stunning natural beauty, picturesque coastlines, majestic mountains and pristine national parks. The country's diverse landscape provides many investment opportunities, from seaside villas to mountain resorts.

Montenegro's strategic location on the Adriatic Sea allows easy access to major European cities, making it an attractive destination for both holidaymakers and permanent residents. The country enjoys a Mediterranean climate with mild winters and warm summers, ideal for year-round living and tourism.

Investing in Montenegro is supported by a friendly business environment and favourable tax policy. The government has put in place a number of incentives to attract foreign investment, including a simple property purchase process for non-residents and relatively low property taxes.

Montenegro is also on track for European Union membership, which promises economic stability and growth that will likely lead to rising property values over time. In addition, as a NATO member, Montenegro benefits from increased security and political stability, providing investors with a safe and secure investment environment.

The cost of living in Montenegro is lower compared to many Western European countries, ensuring a high quality of life at an affordable price. A rich cultural heritage, a warm welcome from the local population and an active expatriate community add to the attractiveness of investing in Montenegro.

Overall, Montenegro combines natural beauty, strategic location, economic incentives and a high quality of life, making it a very attractive location for real estate investors looking for promising opportunities in the region.

20. Why with us?

We stand out among other real estate agencies as an international corporation due to our unique approach, commitment to our clients and international contacts. As investors in our own projects, we deeply understand the needs of our clients and the real estate market. Our company has several departments that cover a wide range of services, including a legal department, a leasing and property management department, an amenities department, and a development sector offering the possibility of renovating or building properties according to our clients' wishes. We are the only stop you need to make on your investment journey. Our commitment to professionalism, efficiency and transparency makes us a trusted partner at every step of the process, enabling us to deliver high quality service and successful outcomes for our clients.