An increasing number of investors are choosing Montenegro as a place to safeguard their wealth. But why? In short, they’re attracted by the four Ls: location, lifestyle, legislation, and lucrative returns.
Despite the volatile and turbulent times of the past few years, Montenegro has maintained its reputation as a stable environment for investment. Its property market grows steadily each year, with developments such as Porto Montenegro — one of the most prestigious marinas on the Adriatic Sea — making Montenegro a year-round home and harbour for global travellers.
Montenegro’s mild Mediterranean climate (with 280 sunny days a year), together with its astonishing natural beauty, rich cultural tradition, and access to the Adriatic Sea, make it a very attractive place to live, stay and holiday.
The value of real estate is most stable when properties are near water. It rarely drops and almost always rises, no matter the changes in the market. It’s why Porto Montenegro has become so attractive to investors in recent years. Located on Boka Bay, off Montenegro’s northern coast, Porto Montenegro offers close proximity to three international airports and the Mediterranean’s cruising grounds.
A rich lifestyle and culture
In Montenegro, you can immerse yourself in a wellness lifestyle that connects you with stunning nature to balance both mind and body. This lifestyle has become a signature of Porto Montenegro. Their elegant residences, seductive boutiques, and waterfront restaurants have made the area a hub for socialising, recreation and adventure.
For those looking to adopt a nomadic lifestyle, Montenegro presents the perfect environment for striking the right work/life balance. A rising number of remote workers are making Montenegro’s beaches and bars their ‘office’. While families are benefiting from the carefree, safe, and peaceful living that the country provides.
If the appeal of warmer days and fun-filled nights hasn’t sold you on Montenegro (yet!), perhaps its legislation will: favourable investment laws for foreigners, one of the lowest tax rates in Europe, and the Montenegro Citizenship by Investment program.
Although not a member of the European Union, Montenegro adopted the euro as its domestic currency in 2002. This was to ease its accession to the EU, but the decision has brought numerous other benefits to the country and its economy.
Montenegro has signed double-taxation treaties on income and property with more than 40 countries. These treaties allow foreign investors to avoid paying double taxes on their personal and corporate income, as well as income on real estate.
The country boasts the lowest tax rates in the Balkan region and one of the lowest in Europe. Depending on the value of the property, real estate taxes range from 0.1% to 5%. The standard value-added tax rate is 21%, with a reduced rate of 7% on certain goods and services.
Since 2019, Montenegro’s Citizenship by Investment program has enabled investors to obtain citizenship, and a Montenegrin passport, by investing in a development project approved by the government. Successful applicants gain dual nationality — with the right to retain their original passport — and citizenship is also extended to immediate family members. Montenegro’s strong passport allows for visa-free, or visa-on-arrival, entry to 123 countries. This includes those in the Schengen Area, Turkey, Russia and UAE. Fair warning, though: the citizen by investment program ends at the end of 2022, so it’s best to be quick!
Lucrative (and growing) returns
Montenegro has a lot to offer to potential investors in a wide range of industries, including mining, tourism, and the maritime sector. However, real estate has proven to be by far the most appealing field for foreign investors.
Coastal real estate in the likes of Porto Montenegro is particularly attractive. It appeals to the growing demand for luxurious tourist accommodations and can allow for greater capital growth. Indeed, Porto Montenegro’s property portfolio offers a range of highly sought-after features. Spaciousness, open-plan living spaces, luxury interiors, and private outdoor areas are all present in a Porto Montenegro residence.
Meet you in Montenegro
Montenegro is a country on the rise. It offers investors an open and dynamic economy, beneficial tax rates, political stability, cultural heritage, and global connections. All of which begs the question: why are you still reading this? Montenegro awaits!