Why do Russians choose Montenegro over Croatia for living and vacationing?

Choosing between Montenegro and Croatia

When choosing a place for vacation or purchasing real estate abroad, Russians typically consider Montenegro and Croatia. These two destinations have an incredibly comfortable geographical location, a characteristic mild Mediterranean climate, and magnificent resorts. However, Montenegro turns out to be more attractive to Russian citizens. According to statistics, the interest in real estate in Montenegro among Russians is four times higher than in similar offerings in Croatia. Similar results are confirmed by data on page visits about Montenegro, which on average exceeds that for Croatia by 20%.

Historical connections

The history of relations between Russia and Montenegro dates back to the 18th century, when Russian troops assisted Montenegro in its struggle against the Ottoman Empire. Since then, after going through many historical phases, the cooperation between these countries has strengthened, particularly in the fields of economy and tourism. Starting in the 2010s, Russians began to actively visit Montenegro not only for vacation but also for purchasing property. Currently, about 15,000 Russian citizens live in Montenegro, where Russian schools, restaurants, and Russian-speaking media, including a newspaper and radio, are already operating. The cities of Bar, Budva, and the Bay of Kotor area have the highest concentration of Russian-speaking population.

Migration legislation

One of the key factors contributing to the popularity of Montenegro is its more favorable immigration legislation compared to Croatia. Foreigners, including Russians, can stay in Montenegro without a visa for up to 30 consecutive days. Russian citizens have the opportunity to remain in the country for up to 90 days within a six-month period, provided they leave the country for a few hours every 30 days. As noted by the director of Montenegro Living, this rule is perfect for short trips, for example, to Bosnia or Serbia. During the summer months, trips to Albania are also allowed.

Advantages of buying real estate

Another attractive feature for Russians is the more convenient and flexible immigration legislation, along with the much more affordable real estate prices. Let's look at the main advantages:

• The costs for processing transactions are significantly lower.
• The processes of acquiring real estate and opening mortgage loans are significantly simpler.
• Lower housing maintenance costs.
• More favorable tax conditions.

Medical and transportation services

Moreover, the cost of medical services here is usually lower than in Croatia, which is especially important for those planning to live in the country for an extended period. The developed transportation infrastructure and its ongoing improvements make traveling around the country comfortable and convenient. The low crime rate, as well as the efficiency of public services and the healthcare system, make Montenegro even more attractive.

Comparison of living conditions

Comparing Croatia and Montenegro, many Russians note that the living and working conditions in Montenegro are much more comfortable. The combination of these factors makes Montenegro an attractive option for those considering immigration or purchasing foreignreal estate. In addition to its pleasant geographical location and comfortable climate, the country is characterized by a friendly attitude towards foreigners, which makes Montenegro especially desirable for living and vacationing among Russian citizens.

Now that Russians are considering a trip to Croatia, they should take care of obtaining a visa that allows them to stay in the country for up to 90 days within a six-month period. Both countries, Montenegro and Croatia, have a friendly attitude towards foreigners, showing no signs of xenophobia. However, according to a report by the World Economic Forum (WEF), Montenegro ranked higher in the friendliness towards tourists in 2013, coming in at 36th place, while Croatia was at 65th. In this ranking, Montenegro received a score of 6.5, while Croatia scored 6.3, which is considered a decent result since the maximum score is 7.

Mentality and religious differences

Anton Shamarin, managing partner of Value.One, expresses the opinion that the mentality of Montenegrins is closer to that of Russians. He notes that religion also plays a significant role in shaping the cultural atmosphere: the majority of Montenegro's residents practice Orthodoxy, while Croats are Catholics. The cultural traditions of Croats are more oriented towards Europe; they exhibit pragmatism and may be less open compared to Montenegrins.

Residents of Montenegro, on the contrary, are generally more friendly and tolerant towards Russians. It is also worth noting that about 90% of real estate transactions in Montenegro are made by Russians and citizens of CIS countries, while in Croatia, properties are eagerly purchased by buyers from Western Europe, who are highly valued by the locals.

Differences in temperament

Ekaterina Kalender, an expert from the Adria Pro project, shares her observations on how Croats and Montenegrins differ. She highlights the calmer temperament of Croats, their restraint, and emphasizes that they are not dependent on Russian tourists and real estate buyers. This means they do not strive to please these elements. Meanwhile, Montenegro's economy largely relies on visitors and buyers from Russia and the CIS, which creates a more welcoming atmosphere, but unfortunately, this is not always sincere.

Real estate prices

As for real estate prices, according to Numbeo, the average cost per square meter in Montenegro is about 1350 euros, which is quite favorable compared to Croatia, where this figure reaches 1667 euros. In Dubrovnik, the most expensive city in Croatia, housing prices exceed those in Kotor, one of the popular resorts in Montenegro, by more than twice.

Approximate real estate prices in Montenegro:

• Kotor — 2500 euros/m²
• Budva — 1650 euros/m²
• Podgorica — 1625 euros/m²
• Herceg Novi - 1500 euros/m²
• Bar - 1400 euros/m²
• Berane — 700 euros/m²

Average housing prices in Croatia:

• Dubrovnik — 5803 euros/m²
• Split - 2039 euros/m²
• Zagreb — 2023 euros/m²
• Šibenik — 1645 euros/m²
• Rijeka — 1447 euros/m²
• Pula - 1333 euros/m²

The dynamics of real estate prices in Croatia

According to the information from the portal Centarnekretnina.net, from September 2012 to September 2013, the average price of houses on the Croatian coast decreased by approximately 1.3% (from 1563 to 1543 euros per square meter). During the same period, apartments on the coast became cheaper by 3.3% (from 1636 to 1581 euros per square meter).

Increase in rental prices in Montenegro

Recently, there has been a 1.5% increase in rental prices for apartments in Montenegro, which translates to between 1953 and 1983 euros per square meter. According to expert Dobrica Ilić, the country experienced a steady rise in real estate prices throughout 2013.

This trend is explained not only by seasonal demand but also by improved investment conditions in Montenegro, as well as the emergence of new attractive properties on the market. The specialist emphasizes that, on average, prices in the country have increased by 10% this year.

Real estate prices

According to the data from the Statistical Office of Montenegro, in the second quarter of 2013, the price per square meter of new residential properties was 11% lower than during the record times of 2008.

Mortgage lending in Croatia and Montenegro

In Croatia, mortgage lending is only available to companies that are genuinely operational and profitable. Often, shell companies are created for the purpose of acquiring real estate, which do not intend to engage in serious business activities. This results in a significant decrease in the likelihood of obtaining a loan.

As for Montenegro, data from banks like CKB show that there are also restrictions there. In both countries, Croatia and Montenegro, mortgage interest rates are in the range of6.20%to8.49%...to which EURIBOR for one year is added. The amount of the loan received can be...50%from the cost of real estate and can vary from15 thousandto250 thousand.euros, with loan terms starting from1to25years in one case and from3to20years in another.

Housing expenses

When it comes to housing costs, they are generally lower in Montenegro than in Croatia. For example, for apartment owners with an area of85 square metersIn Montenegro, you will have to spend approximately2,800 eurosper year, while in Croatia the amount reaches3,100 eurosUtility payments also vary significantly:

• In Montenegro:960 euros
• In Croatia:2,000 euros

Property taxes in Croatia are535 eurosWhile in Montenegro there are no such taxes. The cost of services of management companies is780 eurosin Croatia and1,105 eurosIn Montenegro. Home insurance will cost180 eurosin Croatia and135 eurosIn Montenegro. The total housing expenses amount to:

• Croatia:3,085 euros
• Montenegro:2,780 euros

Utility services and stability

As Ekaterina Kalender notes, public services in Croatia operate more reliably. According to her, "interruptions in water supply and electricity in Croatia are extremely rare, while in Montenegro this remains a constant problem even in developed resort areas like Budva."

Taxes and conditions for business

In terms of tax burden, Montenegro offers more favorable conditions for both individuals and companies. The income tax and corporate tax rate are only9%In Montenegro, while in Croatia these rates vary from12%to40%, with a fixed rate20%for corporate taxes. Rental and capital gains taxes are also lower in Montenegro:

• Rental tax:9%in Montenegro,12%in Croatia
• Inheritance Tax:3%in Montenegro,5%in Croatia

Prices for consumer goods

According to the Numbeo website, the consumer prices in Montenegro by13%lower than in Croatia. Food prices are at15%less, however, lunch at a restaurant in Montenegro will be more expensive by3%Examples of prices include:

• A liter of milk:0.90 eurosin Montenegro,0.79 eurosin Croatia
• Wheat bread:0.70 eurosin Montenegro,0.79 eurosin Croatia
• Rice:1.40 eurosin Montenegro,1.45 eurosin Croatia
• A dozen eggs:1.44 eurosin Montenegro,1.97 eurosin Croatia

Thus, the prices of cheese, fruits, and many other products also vary, reflecting the differences in the cost of food between the two countries.

Transport infrastructure

When it comes to transportation infrastructure, Croatia significantly outpaces Montenegro in this regard. It ranks29thplace in the world in terms of road surface quality,49ththe state of the railways and79thplace in terms of air transportation. At the same time, Montenegro is on the92ndin terms of road quality and103rdRegarding railway connections. This highlights the need to improve the transport infrastructure in Montenegro to reach a higher level, as demonstrated by Croatia.

Airports and transportation

Montenegro has two international airports: one in Podgorica and the other in Tivat. In contrast, Croatia has an extensive network of air connections that covers cities such as Zagreb, Dubrovnik, Rijeka, Pula, and Split, linking them to various destinations across Europe.

The difference in taxi prices in Montenegro is about0.5 euros per kilometer, while in Croatia this figure is slightly higher —0.66 eurosPublic transport in Montenegro costs0.7 eurosfor the trip, while in Croatia the price reaches1.58 euros.

• A monthly travel pass in Montenegro -21 euros
• A monthly travel pass in Croatia -43.38 euros
• The price of gasoline in Montenegro -1.38 euros per liter
• The price of gasoline in Croatia -1.44 euros per liter

Development of tourist infrastructure

According to the World Federation, in 2013 Croatia ranked5th placein the world in terms of the level of development of tourist infrastructure, while Montenegro is positioned at19 placeCroatia boasts a coastline that is1777 kilometersand including the islands, this number exceeds5,700 kilometersWhile in Montenegro, the length of the coastline is about300 kilometers.

In Croatia, the climate is much more diverse, which creates numerous opportunities for acquiring real estate and active recreation, especially for yachting enthusiasts. Ekaterina Kalender notes that this significant advantage makes Croatia more attractive to tourists.

Beach resorts

Yulia Shevaleva, the marketing director of the Adriatica agency, adds that Croatia offers many more beach resorts, considering its larger area compared to Montenegro. In this country, over a hundred beaches and 18 marinas have been awarded the "Blue Flag" for high cleanliness standards, while Montenegro has only 17 such awards.

Both countries offer extensive opportunities for cultural leisure, but Croatia stands out with a larger number of UNESCO World Heritage sites — seven, compared to two in Montenegro.

Medical services

When it comes to medical services, in Croatia they generally cost on average...63% more expensiveAccording to data from the World Health Organization, healthcare spending in Croatia is approximately1169 dollars per person per year...while in Montenegro this figure is equal to...718 dollars.

In the field of medical development, Montenegro occupies55th place, while Croatia —31st.

Safety

In terms of security, Croatia finds itself inin 38th placethat is much higher than45th placeIn Montenegro, Elena Kalender, an expert on local culture, talks about how residents of Croatia tend to leave their keys under doormats and often do not lock their cars when they leave them.

She notes that cases of petty theft are extremely rare here. Of course, there are areas with higher crime rates, such as some tourist camps and major cities like Zagreb and Split, where specific issues may arise, but this is typical for most large cities.

Conclusion

In concluding our review of the differences between Montenegro and Croatia as destinations for real estate purchases and summer vacations, I would like to emphasize a number of key aspects that will undoubtedly play a role in the choices of Russian citizens.

I noted that Montenegro has a number of clear advantages over Croatia:

• More lenient immigration legislation.
• Fewer bureaucratic hurdles.
• More affordable real estate prices.

These factors undoubtedly lead Russians to choose this country for permanent residence or as a storage place for investments.

Moreover, the friendliness of Montenegrins and the cultural similarities between our peoples create a more comfortable atmosphere for living, which is undoubtedly a decisive factor for many. The presence of Russian schools, restaurants, and media contributes to a greater sense of comfort and integration for Russian citizens in Montenegro.

Montenegro attracts not only with its beautiful landscapes and low prices but also with the opportunity for our compatriots to feel at home here. After all, when it comes to choosing a place to live or relax, it's important that the place meets not only aesthetic but also emotional expectations.

Thus, analyzing all the presented facts, it becomes clear why Montenegro has become a more popular option among Russians in recent years. This country offers not only acceptable conditions for living and recreation but also a special atmosphere where one can easily feel at home. All these factors create a unique combination that will undoubtedly continue to attract Russians to Montenegro.