When considering purchasing real estate in Montenegro, it's important to take into account several factors that can affect both the price and the quality of your future life:

• Distance from the sea: Properties in coastal tourist towns close to airports typically have higher prices compared to other towns. For example, Budva, Tivat, Pržno, and Sveti Stefan are known for their high property prices. Conversely, in northern Montenegro, in towns like Cetinje, Podgorica, Nikšić, and Žabljak, property prices are generally about 40% lower.

• Tourist popularity: If a town is popular among tourists, you have the option to purchase a property and rent it out during the summer months, as demand will be high during the tourist season.

• Primary and secondary property: Properties sold directly by construction companies are usually modern, with good interior design, plumbing, air conditioning, and thermal insulation. These are typically features not found in properties sold as secondary real estate. The presence of these characteristics can be significant during the colder autumn and winter months.

• Infrastructure: It's important to pay attention to the availability of kindergartens, schools, shops, beauty salons, pharmacies, and clinics near your property. In Montenegro, there is no public city transportation, and parking spaces are often limited in urban areas. Therefore, consider the need for a garage or parking space.

• Renting for temporary stays: If you plan to rent out the property for temporary stays in Montenegro, consider the seasonal differences in rental prices. In the summer, rental prices are usually higher compared to the autumn, winter, and spring periods.

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In Montenegro, foreign nationals can obtain a residence permit based on various criteria:

• Employment in a registered Montenegrin company: In this case, the residence permit is issued in accordance with the duration of the valid employment contract and can be renewed for subsequent periods, following the contract's duration. Family members can also obtain a residence permit through family reunification with the primary applicant, provided they are legally married and possess the necessary documents.

• Education: Foreign students studying at Montenegrin universities are granted a residence permit valid for one year, which can be extended for each subsequent academic year.

• Starting your own business: In the case of establishing a company, a residence permit is issued for a period of one year and can be renewed if the company remains active.

• Property purchase: A residence permit related to the purchase of real estate is issued for a period of one year, with the possibility of renewal.

Obtaining Montenegrin citizenship was made possible through the Montenegrin Citizenship by Investment program, which was valid until December 31, 2021. The preparation and collection of the necessary documentation usually take about a month.

There are two investment options for obtaining Montenegrin citizenship: Option 1 with an investment of €350,000 and Option 2 with an investment of €550,000. These amounts include real estate investment, donations, due diligence process, and administrative fees.

Montenegro stands out for its competitive taxes compared to Western European countries. For instance, the property tax on the secondary market is only 3% of the cadastral value of the property.

If you choose to purchase property on the primary market, you'll be pleased to know that there is no real estate transfer tax, significantly simplifying the buying process.

The annual tax that foreign citizens pay in Montenegro, known as the "Property Tax," amounts to 0.6% of the cadastral value of the property, regardless of whether the property was purchased on the primary or secondary market.

As Montenegro prepares for its EU membership by 2025, laws, including those related to taxes, are also evolving. Currently, there is consideration of introducing an additional tax for property owners who cannot prove the source of their income. In the case of selling illegal properties, the seller will be subject to additional tax obligations, the exact amount of which has not yet been determined and is currently under government review.

Property Management Involves the Transfer of Ownership Rights to Our Company, with the Goal of Generating Profit.

By entrusting property management to experienced professionals, you will secure the following benefits:

• Significant time savings - You will no longer have to deal with finding tenants, collecting rent, monitoring and paying utility bills, organizing property viewings, drafting contracts, and getting them notarized.

• Any issues related to physical wear and tear on the property or unforeseen circumstances will be handled by our expert team. We will also find a reliable cleaning company and take responsibility for maintaining the property's cleanliness both before and after leasing.

Our primary goal in providing these services is to achieve a return on investment for the owner.

Primary and secondary real estate markets in Montenegro: Considerations when buying

Purchasing real estate in Montenegro, like in other countries, involves various legal aspects during transactions. On the primary market, properties are usually bought directly from the developer. However, it often happens that after construction is completed, the developer transfers ownership to their subsidiaries, and transactions are then conducted on the secondary market, where ownership is transferred from the first to the second owner, even though the property is new.

Advantages of buying from developers on the primary market in Montenegro

Price: Buying during the construction phase allows for significant savings, as prices are usually lower in the initial sales phase. Apartment prices on the primary market in Montenegro vary depending on proximity to the sea, ranging from €1,200/m² to €1,500/m² in coastal cities like Herceg Novi, Bar, and Budva. Inland, for example in Podgorica, average prices are around €1,000/m². On the secondary market in Montenegro, prices are higher, averaging €1,500/m² on the coast and €1,100/m² in Podgorica.

Time savings: Buying from the developer simplifies the process and saves time, as it does not require checking the seller’s financial history or investigating debts and encumbrances on the property.

Wide selection: Purchasing during the construction phase allows you to choose the size, floor, parking, layout, and decoration of the apartment according to your preferences.

Savings on repairs: Apartments in new buildings often do not require major repairs or maintenance in the first few years after moving in.

Infrastructure: New residential complexes in Montenegro usually include supermarkets, pharmacies, and other essential facilities within the complex.

Advantages of buying already built properties on the secondary market

Developed infrastructure: Secondary properties are often located in more established areas with existing infrastructure.

Savings on repairs: Buying already occupied apartments often means that repairs have already been made, and some apartments even come furnished, allowing for quick move-in.

Buying real estate in Montenegro - Tips for profit and living

When planning a profitable real estate purchase in Montenegro, it's crucial to first clearly define your goals. The question is whether you are buying property for rental and profit or for permanent or temporary residence with your family. In this context, several appealing destinations for purchasing rental properties or profitable investments include cities such as Budva, Kotor, Tivat, Sveti Stefan, Pržno, and Ulcinj. These coastal cities are highly sought after during the tourist season due to their proximity to the sea, developed infrastructure, and accessibility to airports.

If you are considering buying property for permanent residence, or for times when the tourist season is not in full swing, there are several other attractive options. Podgorica, the Montenegrin capital with an airport, offers a good selection. Additionally, places such as Sutomore, Herceg Novi, Bar, Šušan, Stoliv, and Zelenika are also appealing locations for buying property for permanent residence. These towns and areas have well-developed infrastructure, with proximity to schools, shops, healthcare facilities, restaurants, cafes, and other recreational amenities.

Factors influencing real estate prices in Montenegro

The purchase or rental of real estate in Montenegro depends on several key factors. Distance from the sea, developed infrastructure, the condition of the property, and the building's construction technology are all elements that shape the overall price.

Below, we will consider each of these factors so you can make profitable decisions when buying or renting properties for permanent or temporary residence.

Location assessment

The distance from the sea plays a crucial role in determining the price of real estate. Properties near the coast and popular tourist destinations such as Budva, Kotor, Tivat, Sveti Stefan, and Pržno usually have higher prices per square meter compared to less-known places. If you're willing to forego a sea view but want proximity, you can save up to 10% on purchasing an apartment. Considering these aspects is essential in making your decision.

Infrastructure

More developed infrastructure typically results in higher real estate costs. Purchasing property in smaller towns with less developed infrastructure can be a more cost-effective option if you are mobile and willing to make compromises. This also helps avoid challenges such as limited parking and crowds during the tourist season. The price of property with developed infrastructure will vary according to the additional amenities it offers, such as landscaped yards, playgrounds, and parking.

Property condition

Before deciding to purchase, be sure to inspect the rooms, utility systems, and the condition of the finishes. If you notice any defects, consider the options for repairing them, as well as the causes that led to these issues. Discuss these matters during negotiations and before signing the contract to avoid potential problems in the future.

Construction technology

The building's construction technology can also influence the price of the property. Prefabricated monolithic structures or panels are usually more budget-friendly. Brick construction, though rarely used in Montenegro, can significantly increase the price. Consider this factor when choosing a property.

Facade finish

The type of facade finish can also impact the price of the property. Facades covered with decorative brick typically increase the value of the real estate.

Kvadratnekretnine.me offers you a simple online procedure for buying and renting real estate

Our platform allows you to easily finalize a lease or purchase agreement for real estate from anywhere in the world. Here's how you can do it:

1. Choose the property that suits you and get online advice from our expert.
2. Reserve your preferred option at a fixed price.
3. Prepare and sign the necessary documents for the transaction.
4. Complete the deal and celebrate with your loved ones.

Montenegro – An ideal destination for small and medium-sized enterprises in 2022

In 2022, Montenegro attracts small and medium-sized enterprises due to its low corporate tax rate (just 9%), standard VAT rate of 19%, fast company registration procedures, and the possibility of obtaining residence permits for employees based on employment.

Business relocation process to Montenegro

1. Choosing the organizational and legal form of the company and its registration.
2. Selecting office or industrial space or land.
3. Concluding purchase or lease agreements for real estate.
4. Legalizing employees and their families, as well as finding suitable housing for relocation.

Kvadratnekretnine.me provides support throughout the entire relocation process. We offer a wide range of services related to business immigration for companies and their employees:

• Company registration in Montenegro: Selecting the legal form, registering the company, tax advice, and fund transfers. We provide information on the specifics of doing business in Montenegro.

• Immigration services: Obtaining residence permits for employees, preparing necessary documentation, translations, and notarizations.

• Real estate: Helping you find suitable office, industrial, and warehouse spaces, as well as residential units for your staff. Our website features listings of commercial and residential properties in various cities.

• “Renting real estate in Montenegro online”: For those considering business immigration, we offer convenient online scheduling for property viewings and contract signing from anywhere in the world.

• IT and telecommunications: Providing advice on internet speeds and provider options at different locations in Montenegro.

• Banking services: Assisting with opening bank accounts in banks with privacy and without automatic exchange of tax information. We also provide advice on corporate banking services.

• Legal services: Offering legal support throughout all stages of relocation, including company registration and obtaining residence permits.

• Certified translation: Our certified translators will handle all necessary document translations for business and employee legalization.

• Accounting: Providing comprehensive accounting services, including establishing tax residency and maintaining accounting and tax records in compliance with the law.