Why is Montenegro the most popular place for buying luxury real estate?

Montenegro has always lived large. Since gaining independence in 2006, it has been the fastest-growing tourism sector until 2019, with the number of visitors increasing from 953,000 to 2.6 million. The beauty of the Adriatic coast, new five-star hotels, luxury shops, and restaurants are just some of the reasons why tourists return here every year. But with new developments, they soon won’t have to leave.

The grand prize for tourists

Boka Bay, a picturesque bay in Montenegro from the Adriatic Sea. The waterfront is dotted with elegant yachts, motorboats, and cruise ships, with 500 of them visiting each year, filled with tourists eager to explore the UNESCO World Heritage site of Kotor. But the bay has another reason for its growing international reputation - three major marinas with residential complexes: Porto Montenegro, Lustica Bay, and Portonovi.

Three resorts

These complexes are at different stages of development, but they all have residents and five-star hotels from world-renowned brands.

Porto Montenegro

The first and most established resort is a symbol of glamour and luxury, a place for meetings and events with high-end shops and, in general, a young audience. Lustica Bay is a year-round living destination, the largest of the three, covering 690 hectares, while Portonovi offers residential homes, including One & Only villas, sold for over 10 million euros.

Real estate prices

In all three resorts of Boka Bay, property prices have never fallen, says Kiren Kelleher from Dream Estates Montenegro. Porto Montenegro, owned by the Dubai sovereign fund since 2016, opened in 2009 and leads in average price per square meter at around 10,000 euros, compared to 9,000 euros in Portonovi and 7,000 euros in Lustica Bay.

Investments and taxes

Montenegro completed its Citizenship by Investment Program in December 2022. Property owners can apply for a one-year residence permit and, after five years, obtain permanent residency. The income tax and corporate tax do not exceed 15 percent regardless of income. The property transfer tax for resold real estate was increased in 2023 from a flat 3 percent to a sliding scale of 3 to 6 percent.