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Freehold for foreign buyers, a superyacht marina at Tivat and the UNESCO-listed Bay of Kotor: how to buy prime property in Montenegro, what it costs and what it gives you.
At a glance
| Can foreigners buy? | Yes. Apartments, houses and building land, freehold, on the same terms as citizens. Agricultural land, forests, islands and the land-border strip are restricted. |
|---|---|
| Purchase tax (resale) | Progressive transfer tax, paid by the buyer: 3% up to €150,000, 5% on the slice to €500,000 and 6% above. A €2 million villa pays about €112,000 (5.6%). |
| New builds | 21% VAT on the first sale by a developer, usually included in the price, and no transfer tax. |
| Residency through property | Yes, limited. Since 17 January 2026 a one-year renewable temporary residence permit needs property with a tax-assessed value of at least €150,000. It does not allow work. |
| Citizenship by investment | Closed on 31 December 2022. |
| Currency | Euro, used unilaterally (Montenegro is not in the eurozone). |
| US tax treaty | None. |
Why buy here
Montenegro packs a great deal of coast into a small country. Porto Montenegro at Tivat, a superyacht marina village, is the most liquid prime market; the Bay of Kotor, a UNESCO World Heritage site, holds stone palazzi and waterfront villas; Luštica Bay is a new golf-and-marina town; and Portonovi, with its One&Only resort, guards the mouth of the bay. South along the Budva Riviera, Aman Sveti Stefan sets the tone for clifftop villas.
For buyers the rules are straightforward: foreigners own homes outright, there is no purchase permit for unrestricted property and no reciprocity test, the notary's fee is capped at €8,000 plus VAT, and prices are set in euros. Since January 2026, property worth €150,000 or more can also support a residence permit.
Planning a first visit? See our guide to the Bay of Kotor, Porto Montenegro and Sveti Stefan.
Who can buy
Freehold. Foreign individuals and companies can own apartments, houses and urban building land on the same terms as Montenegrin citizens. US citizens are treated like other foreigners, with no reciprocity test and no purchase permit for unrestricted property.
Restricted for foreigners:
Country villas. A foreign individual may acquire agricultural or forest land of up to 5,000 m² when it comes with a residential building on it.
Company route. A Montenegrin company is a domestic legal person, so a foreign-owned local company can hold restricted categories. Take advice before relying on this.
Best areas to buy
Prices are indicative asking-price ranges compiled from listings, not transaction data.
Indicative prime price€5,000–8,000 per m²
The superyacht marina village, with residences, shops and restaurants on the water. The most liquid prime market in the country.
Indicative asking prices: Investropa, 5 October 2026.
The Bay of Kotor Territory →Indicative prime price€3,500–6,000 per m² (Old Town); €2,500–4,200 per m² (Dobrota and Prčanj)
Stone palazzi and waterfront villas on the UNESCO-listed bay, with private jetties along the shore.
Indicative asking prices: Investropa, 5 October 2026.
The Bay of Kotor Territory →Indicative prime priceNo reliable per-m² figure published
A golf-and-marina town of new villas and apartments on the Luštica peninsula, at the entrance to the bay.
Searched 31 October 2026.
The Bay of Kotor Territory →Indicative prime price€2,400–3,800 per m² (Herceg Novi town)
The One&Only Portonovi resort and marina at the mouth of the bay, beside the old town of Herceg Novi.
Indicative asking prices: Investropa, 5 October 2026.
The Bay of Kotor Territory →
Indicative prime priceWithin a coastal top range of about €4,000–10,000 per m²
Clifftop villas above the sea near Aman Sveti Stefan, the island village that made the Riviera famous.
Indicative asking prices: Investropa, 5 October 2026.
The Budva Riviera & Sveti Stefan Territory →
Indicative prime price€2,500–4,000 per m²
The busiest resort strip on the coast, with apartments close to the beaches and the walled old town of Budva.
Indicative asking prices: Investropa, 5 October 2026.
The Budva Riviera & Sveti Stefan Territory →Homes and settings
Photographs to show the setting and style of homes; they are not listings for sale.
Developers
Projects selling or taking enquiries on 31 October 2026.
The marina village, with the Vero & Versa residences (202 homes, launched 2025), Boka Place and South Village. Visit website (opens the official site) ↗︎
Developed by Azmont Investments around the One&Only Portonovi hotel and marina, with apartments, villas and penthouses. Visit website (opens the official site) ↗︎
A golf town with a marina, homes and boutique hotels on the Luštica peninsula. Visit website (opens the official site) ↗︎
How to buy
Get a tax identification number and open a local bank account, so that the payment trail is clear.
Your lawyer checks the cadastre record (Real Estate Administration) and its history, charges, unregistered earlier contracts, building and occupancy permits, legalisation status and any pre-emption rights.
A deposit of about 10% is customary. This is a market norm, not a legal rule.
Notarisation is mandatory. The notary usually files the contract with the Real Estate Administration.
Registration transfers ownership; handover alone does not.
The municipal tax service issues an assessment, usually payable within 15 to 30 days.
Allow about four to eight weeks to signing. Registration in the cadastre can take longer, especially on the coast.
Lawyers and lenders who serve foreign buyers can be listed on this page. To advertise, write to [email protected].
Taxes and fees
| Item | Rate or cost | Paid by |
|---|---|---|
| Transfer tax (resale) | 3% up to €150,000; €4,500 plus 5% of the amount over €150,000, up to €500,000; €22,000 plus 6% of the amount over €500,000. Charged on the market value set by the tax service. | Buyer |
| VAT (new build, first sale) | 21%, with no transfer tax | Buyer, usually included in the price |
| Notary | €480 plus €13 per €15,000 above €119,999.99, capped at €8,000, plus 21% VAT (Notary Tariff, in force 9 April 2026) | By agreement |
| Agent | About 5% | Usually the seller; confirm in writing |
| Annual property tax | 0.25% to 1.00% of market value, set by each municipality; 0.30% to 1.50% for second homes | Owner |
| Rental income (non-residents) | 15% on Montenegrin rent, after costs or a standard deduction | Owner |
| Capital gains on sale | 15% of the gain; a sole main residence is exempt | Seller |
There is no wealth tax. Coastal municipalities also charge foreign second-home owners in tourist zones an annual tourist levy.
Residency
Temporary residence through property (since 17 January 2026). The Law on Foreigners now requires property with a value, as assessed by the Tax Administration, of at least €150,000. The applicant must own at least a 50% share, show actual use of the property and have paid its taxes. The permit lasts one year, is renewable and does not allow work. Permits issued before 17 January 2026 can be renewed under the old rules.
Citizenship by investment: closed. The Government ended its special investment programme on 31 December 2022, and nothing has replaced it.
For Americans: Montenegro has no income tax treaty with the United States, and US citizens remain taxable in the US on worldwide income. Confirm the residence rules with the Ministry of Interior before you buy.
Founding Partners
Founding Partners
Three places for Founding Partner Agencies and three for Developers in each Territory. Places are open.
Territories in Montenegro: Bay of Kotor, Budva Riviera & Sveti Stefan.
Questions
Yes. US citizens can buy apartments, houses and building land freehold, on the same terms as Montenegrins. Agricultural land, forests, islands and the land-border strip are restricted for all foreigners.
It can. Since 17 January 2026, property with a tax-assessed value of at least €150,000 supports a one-year, renewable temporary residence permit. It does not allow work.
It is progressive: 3% up to €150,000, 5% on the slice to €500,000 and 6% above. New builds bought from a developer carry 21% VAT instead.
No. The programme closed on 31 December 2022.
A foreign individual may acquire agricultural or forest land of up to 5,000 m² when it comes with a residential building on it.
Where to stay while you look
Selected by TheMediterranean.com · Kumbor, the Bay of Kotor
View the ResortChecked and sourced
Checked 31 October 2026. Rules and rates change; confirm with a qualified lawyer and tax adviser before you buy. TheMediterranean.com is not a real estate broker, agent or finder, and nothing here is legal, tax or immigration advice.
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