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Montenegro has quietly become one of Europe’s most exciting luxury real estate destinations.
within a two-hour drive of each other. For investors, second-home buyers, and lifestyle seekers,
the country offers something incredibly rare: glamour, accessibility, and favourable taxes.This guide walks you through the most desirable areas to buy – from Kotor Bay and Porto Montenegro to the Budva Riviera
and the northern mountain retreats – and explains why
EuropeanProperty.com is a trusted platform for serious international buyers.
The Bay of Kotor (Boka Kotorska): UNESCO Scenery & Heritage Waterfront Living
The Bay of Kotor is Montenegro’s crown jewel. The old Venetian port towns of Kotor, Perast, Dobrota and Risan sit on deep, fjord-like water surrounded by dramatic cliffs.
The entire bay is UNESCO-protected, which helps preserve its historic stone villas, baroque palaces and waterfront promenades.
Why high-end buyers love Kotor Bay
- World Heritage cachet: UNESCO status protects character and limits overbuilding, which supports long-term value.
- Views + privacy: You’re buying forever views – mountains dropping straight into the Adriatic.
- Proximity: 15–20 minutes to Tivat Airport and the Porto Montenegro superyacht marina.
- Rental demand: High-end travellers pay a premium for restored waterfront houses and boutique apartments.
Typical pricing
Restored stone waterfront villas in Kotor Bay commonly range from €700,000 to €3M+, depending on direct water access, berthing options, and restoration quality.
Example opportunity
On
EuropeanProperty.com you’ll find a 4,323 m² plot in Risan overlooking the Bay of Kotor. It’s positioned as an “unparalleled panoramic view” site – ideal if you want to design a statement villa or small boutique hospitality project that leans into the heritage/slow luxury narrative of the bay.
Fast facts: Kotor Bay
Property style: Historic stone waterfront houses, hillside villas with terraces, boutique hotel conversions.
Buyer profile: Yacht owners, heritage lovers, “I want Lake Como, but quieter.”
Hold term: Strong for legacy ownership – UNESCO status protects supply.
Browse Bay of Kotor & Risan listings on EuropeanProperty.com »
Porto Montenegro, Luštica Bay & Portonovi: The Adriatic Marina Lifestyle
The triangle of Porto Montenegro (Tivat), Luštica Bay, and Portonovi (near Herceg Novi) is where Montenegro competes directly with the French Riviera and the Costa Smeralda.
These master-planned, marina-front communities combine five-star hotel brands,yacht berths, designer retail, medical/wellness, private beach clubs,
and managed rental programmes. Portonovi, for example, is anchored by Europe’s first One&Only resort; Luštica Bay is adding Montenegro’s first Gary Player–designed 18-hole golf course;Porto Montenegro has evolved into a lifestyle district with luxury retail, dining, and
branded residences for yacht owners and long-stay residents.
Why high-end buyers love the marinas
- International environment: English widely spoken, concierge-level services, feels “plug and play.”
- Security + management: Gated / managed communities ideal for lock-up-and-leave ownership.
- Resale and rental strength: Limited supply and global awareness keep demand resilient even in slower markets.
Typical pricing
- Porto Montenegro / Luštica Bay apartments: often from ~€500,000+ for one- to three-bed marina-view units.
- Townhouses / villas in newest phases (e.g. The Peaks at Luštica Bay): ~€900,000+.
- Large waterfront villas in Portonovi: €2.7M+ and up.
On EuropeanProperty.com we highlight
prime marina-view apartments and can introduce buyers to off-market penthouses and villas.
Many of the most desirable homes in these resorts never hit normal portals – they’re shown by request only.
Fast facts: Porto Montenegro / Luštica / Portonovi
Buyer profile: Yachting lifestyle, UAE/Qatar/Saudi buyers, London finance, tech founders, long-stay expats.
Value story: Comparable marina/resort product on the Côte d’Azur can easily be ×2–×3 the price.
Future upside: Luštica Bay’s golf course and long-term masterplan aim to make it a full-scale coastal city, with only ~10% of the land to be developed
Budva Riviera & Bar Coast: Modern Villas, Pools, Rental Yield
South of Kotor Bay, the coast around Budva, Sveti Stefan, Petrovac and Bar
is where you’ll find contemporary Mediterranean villas: glass, terraces, infinity pools,
outdoor kitchens. This stretch blends lifestyle (restaurants, nightlife, beaches)
with investment logic (short-term holiday rentals in peak summer).
Why international buyers like Budva / Bar
- Accessibility: Reachable from both Tivat and Podgorica airports.
- Established rental season: Budva is Montenegro’s summer playground.
- Lower entry than the marinas: You can still get a luxury spec villa under €1M.
Typical pricing
High-spec four-bedroom villas with private pool are typically advertised in the
€600,000 – €900,000 range, depending on sea view, finish level,
and proximity to the waterfront.
Featured property
EuropeanProperty.com is currently marketing a 4-bedroom / 5-bath luxury villa in Kunje
(near Bar), approx. 170 m², with private pool and modern finish,
listed at around €750,000. That sits right in the sweet spot
for UK and Middle East cash buyers who want personal use plus seasonal rental returns. :contentReference[oaicite:6]{index=6}
Fast facts: Budva Riviera & Bar
Buyer profile: Lifestyle investors who still want yield from July/August rentals.
Hold term: Medium-term rental + holiday home play, exit via resale to same buyer profile.
Look here if you want: “I want my own pool, I want a view, and I want to be on the Adriatic for under €1M.”
Montenegro’s Northern Wilderness: Eco-Luxury & Land Banking
Montenegro is not just coast. The north – around the Tara River Canyon,
Plužine, and Durmitor National Park – is an alpine world of lakes,
forests, canyons and hiking trails. It’s the new frontier for buyers who want a wellness retreat,
boutique lodge, or long-term “legacy” estate surrounded by protected nature.
Why investors and lifestyle buyers look north
- UNESCO-grade nature: Tara Canyon is one of Europe’s deepest river canyons.
- Land availability: Large plots are still accessible, unlike crowded Alpine regions.
- Eco-tourism trend: Wellness, adventure sports and “off-grid luxury” are growing fast.
Typical pricing
Scenic land for private villas / eco-lodges often sits around
€200,000 – €400,000+, depending on size, permits and direct views.
We’ve identified plots above 4,000 m² offered in the mid-€300Ks. :contentReference[oaicite:7]{index=7}
Featured property
On EuropeanProperty.com
you’ll find a beautiful plot in the Tara River Canyon region,
marketed at around €345,000 for 4,000+ m² of dramatic mountain scenery.
The pitch is “immersive nature, eco-retreat potential,” which fits the global
demand for low-density, nature-led hospitality. :contentReference[oaicite:8]{index=8}
Fast facts: Montenegro North
Buyer profile: Wellness hospitality, boutique lodge concepts, ultra-private family compounds.
Hold term: Long-term appreciation + potential eco-rental revenue.
Look here if you want: “I want to own wilderness in Europe.”
Taxes, Residency & Buying Costs in Montenegro
Purchase taxes & fees
For resale property, buyers typically pay a 3% real estate transfer tax
on the agreed price. For brand-new / first-sale property,
Montenegro applies VAT (recently quoted at around 19%) instead of the 3% transfer tax. :contentReference[oaicite:9]{index=9}
The all-in transaction cost (including tax, notary, legal,
agent commission etc.) is commonly estimated at around 6%–9% of purchase price.
Note: In Montenegro, notarisation of the sale contract is compulsory and must be done in front of a licensed notary.
Annual property tax
Once you own, you’ll pay annual property tax. Most guidance puts this at roughly
0.1%–1% of the property’s assessed value depending on location and property type.
This is considered competitive versus Mediterranean alternatives, and it’s one reason Montenegro is seen as
“low holding cost” for second homes.
Rental income & capital gains
Rental income and capital gains are generally taxed at flat rates around
15% according to recent investor guidance. :contentReference[oaicite:13]{index=13}
Investors often structure their purchase through a local company for efficiency.
Montenegro’s corporate tax is known for being low by European standards, historically starting at about
9% for lower profit bands and scaling up to 12–15% for higher profits.
Residency & structuring
Foreign buyers can purchase property in Montenegro even without residency.
The country applies the same purchase tax rates to residents and non-residents.
However, many buyers choose to obtain a 1-year renewable residence permit by opening a Montenegrin company
or via property-related investment. Holding residency also helps with things like bank accounts,
vehicles, and time spent in-country. Corporate ownership can be a gateway to that residency route.
Some advisors describe Montenegro’s tax system as “territorial / low-rate” and attractive for asset protection,
but it’s not a zero-tax haven. Income tax and corporate tax generally fall in the 9%–15% range.
Always get independent legal and tax advice. Use a lawyer who represents you, not one recommended
solely by the selling party or agent, to avoid conflicts of interest.
Why Start With EuropeanProperty.com
EuropeanProperty.com curates premium listings across coastal villas,
marina residences, heritage bay homes and large-scale mountain plots –
all in one place. We work with reputable local partners, marina developers,
and independent lawyers to keep international buyers protected and informed.
- Coastal villas under €1M:
Explore pool villas near Budva and Bar from ~€700k–€900k.See current coastal villas » - Waterfront / marina lifestyle:
Porto Montenegro, Luštica Bay, Portonovi – yacht berths, five-star hotels,
golf, branded residences, from ~€500k for apartments
to €2M+ for signature villas.See marina residences » - UNESCO bay and legacy plots:
Build your own statement home overlooking the Bay of Kotor or create an intimate eco-retreat
in Tara Canyon starting in the €300k–€400k land range.
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