Montenegro residence permit through the purchase of real estate

Author of the article:

Ilya

Montenegro real estate specialist

Date:  12.11.2024

Updated: 12.11.2024

Reading time: 15 min.

Views:  165

In recent years, Montenegro has attracted more and more foreigners dreaming of a new place to live and invest. One of the most convenient ways to obtain a residence permit in this wonderful country is the purchase of real estate. In this material we will consider in detail how exactly you can get a residence permit in Montenegro through investment in real estate, what advantages it gives, as well as what steps you need to take for successful registration.

Advantages of Montenegro as a place to live and invest

1. Affordable real estate prices

One of the most significant advantages of Montenegro is the affordability of real estate prices. Unlike many other European countries, where the cost of housing can be prohibitive, here you can find great deals. For example, for the amount you spend on a small apartment in Moscow, in Montenegro you can buy a spacious house overlooking the sea. This creates excellent conditions both for comfortable living and for profitable investments.

2. loyal tax system

Montenegro offers attractive conditions for investors due to its tax system. Tax on rental income is only 9%, which is significantly lower than in most Western European countries. In addition, the property transfer tax varies from 3% to 5% depending on the region, which also makes the process of buying real estate more affordable. These conditions contribute to the fact that many foreigners choose Montenegro to rent out their properties.

3. mild climate and high standard of living

Montenegro's climate is another important advantage. Here the sun shines almost all year round and mild winters make life comfortable. I myself noticed how quickly I adapted to local life, enjoying the warm weather and beautiful natural scenery. In addition, the quality of medical services and education in Montenegro meets European standards, which makes the country attractive not only for investors, but also for families planning to relocate.

4. Prospects for EU accession

We should not forget about the prospects of Montenegro's accession to the European Union. This event is expected by many and can significantly increase the value of real estate in the country. Accession to the EU will also simplify life for holders of residence permits, giving them more rights and opportunities. If you are planning a long-term investment, this is an extremely important point to consider when deciding to buy real estate.

5. Attractive culture and lifestyle

Apart from economic advantages, Montenegro offers a unique culture and lifestyle. The locals are friendly, and the variety of events and festivals allows everyone to find something to enjoy. I myself adore local festivals, where you can taste delicious cuisine and socialize with people from different parts of the world. It creates an atmosphere in which you want to live and develop.

6. Developing infrastructure

Every year Montenegro is actively developing its infrastructure. New roads, airports and tourist facilities make the country even more attractive to investors. For example, recent investments in tourism infrastructure have increased the number of international flights and improved accessibility to popular resorts. This creates additional opportunities for rental properties and increases demand for housing.

Overall, Montenegro offers many advantages for living and investing, and these factors make the country attractive to foreign investors. If you are looking for a place where you can not only live comfortably but also invest profitably, Montenegro can be your ideal choice.

Basic requirements for obtaining residence permit in Montenegro through the purchase of real estate

If you have decided to take a step towards a new life in Montenegro and obtain a residence permit through the purchase of real estate, you should be aware of a few key requirements. These rules will help you prepare for the process and avoid unexpected situations.

Minimum real estate value and categories of objects

The first thing to consider is the minimum value of real estate required to obtain a residence permit. Currently, this amount is 250,000 euros, and it applies to properties located in less developed regions of the country. If you want to buy a property in more popular locations such as Budva or Kotor, the minimum amount increases to 450,000 euros. This may seem like a significant amount, but given the growth potential of the market, many investors consider it a sound investment.

Examples of objects

I remember when an acquaintance of mine, an investor from Russia, bought an apartment in Budva for 400,000 euros. He not only provided himself with comfortable accommodation, but also became the owner of an object in one of the most sought-after tourist destinations in Montenegro. Now his apartment brings in a stable rental income, which makes the investment even more profitable.

Requirements for the execution of the transaction

The next important point is the requirements for the execution of the transaction. It is important to remember that in order to obtain a residence permit, you will need to own the property for at least five years. This means that you will not be able to simply buy an apartment, get a residence permit and immediately sell it. It is also worth considering that you will need to provide documents confirming the legality of the transaction and the absence of debts on taxes and utilities.

The transaction process

The formalization of the transaction includes several stages:

1. Preliminary agreement: Once you have found the property you want, you need to sign a preliminary contract. It will specify all the terms of the deal, as well as the amount of the deposit.
2. Document verification: Before signing the main contract, it is important to check all property documents to avoid problems in the future. This includes checking the title, no debts or other encumbrances.
3. Notarization: The main sale and purchase agreement must be notarized. This is a mandatory step that guarantees the legality of the transaction.
4. Registration in the land Register: After signing the contract, you will need to register your ownership at the local land registry. This process can take from a few days to a few weeks.

Limitations and exemptions for certain categories of real estate

Some types of real estate may have restrictions. For example, if you plan to buy a plot of land or agricultural land, you will need to consider additional rules. In most cases, foreigners can only purchase land through setting up a company in Montenegro. This may seem complicated, but many lawyers and real estate agencies can help you understand this issue.

Additional restrictions for agricultural land

If you are considering the purchase of agricultural land, it is important to remember that such transactions may be restricted. Generally, foreigners can only purchase such land for agricultural-related businesses. This means that you will have to provide a business plan and prove that you will actively use the land.

Documents required to apply for a residence permit

When you have completed the process of buying a property, you will need to put together a package of documents to apply for a residence permit. Here is what you will need:

• Passport (original and copy).
• Proof of real estate (sale and purchase agreement, certificate of ownership).
• A certificate of no criminal record from your country.
• Medical insurance valid in Montenegro.
• Financial documents that prove your ability to support yourself in the country.

Compliance with all these requirements and preparation of the necessary documents will help you to successfully complete the process of obtaining a residence permit in Montenegro. If you have any questions, do not hesitate to seek help from real estate and migration experts. They will be able to provide you with up-to-date information and support every step of the way.

The process of applying for residence permit through the purchase of real estate

Now let's look at the step-by-step process of obtaining a residence permit through the purchase of real estate. It may seem complicated, but with the right approach and the support of experts, you will be able to go through it without much difficulty.

1. Selecting a property and submitting an application for purchase

The first step is to choose an object. It can be an apartment, a house or even a commercial property. Once you have decided on your choice, you will need to submit a purchase order. Don't forget that it is important to do a pre-purchase inspection of the property to make sure that everything is in order.

2. Real estate inspection and legal support

Once you have found a suitable option, it is advisable to engage a lawyer to help you check all the documents. This is important to avoid unpleasant surprises in the future. I myself faced a situation when one of my acquaintances bought an apartment that had unregistered debts. This caused a lot of problems, and fortunately, a timely connected lawyer helped him to solve the situation.

3. Drawing up a contract of sale

Next, you will need to draw up a sale and purchase agreement. This is an important stage, as the further process of obtaining a residence permit depends on the correctness of the contract. The contract must clearly specify all the terms of the transaction, including the rights and obligations of the parties.

4. Registration of property and registration of rights

Once you have signed the contract, you will need to register your ownership with the local land registry. This process can take from a few days to a few weeks, depending on how busy the registry office is.

5. Required documents for applying for a residence permit

When all the documents are in place, you can start collecting the necessary papers to apply for a residence permit. This includes your passport, real estate documents, certificates of no criminal record and medical insurance. I recommend preparing all the documents in advance to avoid delays.

Application processing timeframe and stages of obtaining the status

After you submit your application, you will have to wait a little while. Usually, the review process takes from 2 to 4 months. It is important to remain patient and be prepared for possible inquiries from the migration services.

In the next part we will take a closer look at the types of properties suitable for a residence permit and what additional costs you will incur when buying.

Types of real estate suitable for obtaining a residence permit

When it comes to buying real estate to obtain a residence permit in Montenegro, it is important to understand which properties are suitable for this purpose. Basically, there are several categories of properties that you can consider.

Residential properties

The first thing that comes to mind is, of course, residential real estate. It can be apartments, houses, villas and even townhouses. I remember being amazed by the variety of offers on the market. In Budva, for example, you can find both modern apartments with sea views and cozy houses in the old town.

If you want to live in Montenegro, buying an apartment in a new apartment complex can be a great option. Many of them offer developed infrastructure, swimming pools and even fitness centers. I myself have seen friends enjoying life in such complexes - it is really comfortable and convenient.

MOGREN HILL

from € 110,000

Montenegro, Budva

A1 Quartier

from € 55,350

Montenegro, Budva

Locca Budva

from € 237,143

Montenegro, Budva

Tara

from € 240,000

Montenegro, Tivat

Mountain Retreat by Dukley

from € 350,000

Montenegro, the town of Kolasin

Royal Blue

from € 270 000

Montenegro, Tivat

Commercial real estate

The second option is commercial real estate. If you have plans to open a business or want to rent out the premises, this can be a very profitable solution. I know several investors who have bought commercial premises in Podgorica and Budva and are now receiving stable rental income.

However, it is worth remembering that there may be additional requirements and restrictions for buying commercial real estate. Therefore, it is better to consult a lawyer or real estate agent in advance.

Restrictions on the purchase of certain types of real estate

It is also important to note that not all types of real estate are eligible for a residence permit. For example, if you want to buy a plot of land or agricultural land, you will need to consider some restrictions. Generally, foreigners can only purchase land through establishing a company in Montenegro. This may seem complicated, but many experts will help you to understand this issue and go through all the necessary steps.

Additional costs and taxes when buying real estate in Montenegro

When buying real estate in Montenegro, it is important to consider not only the cost of the property itself, but also the additional costs and taxes that may arise in the process. This will help you avoid unpleasant surprises and better plan your budget.

Advantages of Montenegrin real estate for investors

Now let's talk about the advantages that Montenegrin real estate provides for investors.

Potential for real estate value growth

Firstly, Montenegro shows a steady increase in real estate prices. According to statistics, over the past five years, the value of real estate in popular tourist regions has increased by 30-40%. This makes real estate investments very attractive for those looking for long-term investments.

Opportunities to rent out real estate

Secondly, the high demand for rental accommodation in tourist areas creates excellent income opportunities. I personally know several people who have bought apartments in Budva and successfully rent them out to tourists. This not only brings a stable income, but also allows you to use the property for personal purposes in the off-season.

Comparison of real estate prices with other European countries

Finally, it is worth noting that real estate prices in Montenegro are still lower than in most other European countries. For example, the cost per square meter in Budva is significantly lower than in Croatia or Spain. This gives investors the opportunity to get quality housing at a reasonable price.

In the next installment, we will discuss the obligations and restrictions for residence permit holders, as well as how to extend your status in the future.

Citizenship by Investment Program in Montenegro

In recent years, Montenegro has developed the Citizenship for Investment program, which attracts the attention of many investors. This is an excellent way not only to obtain a residence permit, but also to become a full-fledged citizen of the country.

Overview of the program and differences from the residence permit

The program "Citizenship by Investment" implies higher investment requirements than for obtaining a residence permit through the purchase of real estate. To become a Montenegrin citizen, you will need to invest at least 350,000 euros in less developed regions or 450,000 euros in more developed areas. This is considerably more than the minimum amount for obtaining a residence permit, but in return you will receive all the rights of a citizen, including the possibility of visa-free entry into 124 countries.

Benefits of citizenship

Obtaining citizenship gives you many benefits such as:

• Visa-free access: Visa-free travel to 124 countries, including Schengen countries.
• Right to work: You will be able to work and do business in Montenegro and other EU countries.
• Education and healthcare: Access to quality educational and health services at the citizen level.

Minimum investment amount for citizenship

As I mentioned, the amount of investment for citizenship is higher than for a residence permit. However, many people consider it as a long-term strategy. For example, a friend of mine, who has been living in Montenegro for several years, decided to invest in a project to restore an ancient building and obtained citizenship. Now he can travel freely around Europe, which makes his life much easier.

Additional costs

Apart from the amount of investment, you also need to consider additional costs such as:

• State fees: Usually around 100,000 euros for the citizenship process.
• Legal services: It is recommended to hire a lawyer to accompany the process, which can cost between 1,500 and 5,000 euros.

Comparison of residence permit through purchase of real estate and citizenship program for investment

If you want to obtain citizenship, it is worth carefully weighing the pros and cons. The citizenship by investment program requires a large investment, but also offers more opportunities. While a residence permit through the purchase of real estate may be a more affordable option for those who are not ready to make large investments right away.

Key Differences:

Conclusion

Obtaining a residence permit in Montenegro through the purchase of real estate is a great way to start a new life in one of the most beautiful countries in Europe. You will not only get the right to reside, but also the opportunity to enjoy all the benefits that this amazing country offers.

If you are planning to move to Montenegro or want to learn more about the process of obtaining a residence permit, I highly recommend contacting real estate and immigration experts. They will help you understand all the nuances and make the process as comfortable as possible.

For more information and consultations, please contact our company. We are ready to help you every step of the way on your way to a new life in Montenegro!