Montenegro vs Spain: Where to buy real estate and where to invest?

Have you ever wondered where it is more profitable to buy real estate abroad: in picturesque Montenegro or sunny Spain? Let's find out together what these countries offer to potential investors.

Choosing between real estate in Montenegro and Spain can be a difficult choice. Both countries appeal with their unique advantages. In this article we will compare real estate markets, buying procedures, living standards and other key aspects to help you make an informed choice.

Analysis of the real estate market in Montenegro

Montenegro, with its picturesque landscapes and Adriatic coastline, continues to attract the attention of investors from all over the world. The country's real estate market is showing steady growth, especially in the coastal regions, where demand for housing remains high.

Popular regions for investment:

• Budva Riviera: The towns of Budva, Becici and Petrovac are centers of tourist activity. The cost of real estate here varies, but, for example, a three-bedroom house can cost approx. €300,000-400,000.
• Boka Kotor Bay: The historic towns of Kotor, Herceg Novi and Tivat are known for their cultural value and tourist attraction. The prices of accommodation in these places are often higher than the national average.
• Bar Riviera: The city of Bar, which is a major port and business center, offers more affordable real estate options. Here you can find a house with a sea view for €150,000-200,000.

Dukley Gardens

from € 1,130,000

Montenegro, Budva

Mountain Retreat by Dukley

from € 420 000

Montenegro, Kolashino

Villas Elleven

from € 420 000

Montenegro, city of Budva, village of Krimovica

Horizon

from € 425 000

Montenegro, Tivat

Lustica Bay: Centrale

from € 429 000

Montenegro, Tivat

Tivat Gardens 

from € 120,000

Montenegro, Tivat

Price and demand dynamics:

In recent years, there has been a steady increase in real estate prices in key regions of Montenegro. This is due to increased tourist traffic and limited supply of new housing. Experts predict that prices will stabilize in the near future as current construction projects are completed, especially in the capital city of Podgorica, where new apartments are being actively built.

It is interesting to note that the rental market is also experiencing significant changes. Since 2022, the cost of rental housing in Montenegro has increased significantly, in some regions almost doubling, which makes investment in rental property particularly attractive.

Analysis of the real estate market in Spain

The real estate market in Spain in recent years has demonstrated sustainable growthSpain's residential real estate market is estimated to reach USD 166.01 billion in 2024 and is expected to reach USD 231.75 billion by 2029, at a compound annual growth rate. According to the data, Spain's residential real estate market size is estimated at USD 166.01 billion in 2024 and is expected to reach USD 231.75 billion by 2029, at a compound annual growth rate of 6.90% during the forecast period.

Popular regions for investment:

• Madrid and Barcelona: The country's largest cities with developed infrastructure and high demand for housing.
• Valencia: Attracts investors due to its combination of urban convenience and coastal living.
• Andalucía (Costa del Sol): Known for its resort towns such as Marbella and Málaga, popular with foreign buyers.

Apartments in a complex in Almeria, Spain

from € 161,000

Spain, Almeria

Energy efficient villa in a prestigious location in Mihas

from € 1,250,000

Spain, Mijase

Spacious villa in Benalmadena with picturesque sea views

from € 1,495,000

Spain, Benalmadene

New duplex apartments in Marbella next to a golf course

from € 1100 000

Spain, Marbella

Luxury villa with special amenities in Marbella, Malaga

from € 4,995,000

Spain, Malaga

Spacious house with pool near the sea in Benalmadena

from € 1,545,000

Spain, Malaga

Price and demand dynamics:

In 2024, real estate prices in Spain continued to rise. For example, in Cantabria, the cost of housing increased by 11% compared to the previous year, making it the second most expensive autonomous region in the country. Overall, the average price per square meter in Spain is about 1,753 euros.

Construction activity has also increased, with 2024 issuances of 127 721 a building permit, which on 17% more than in 2023. This is the highest figure for the last 16 years. However, despite the increase in construction, supply is still not keeping up with high demand, especially in major cities. This leads to further price increases and competition among buyers.

For foreign investors, it remains attractive to receive "golden visa" when purchasing real estate in the amount of 500,000 euroswhich entitles you to a residence permit in Spain.

Comparison of key investment factors

Montenegro attracts investors with more affordable real estate prices and high growth potential, especially in tourist regions. Spain, on the other hand, offers a stable market with developed infrastructure and a high standard of living, which makes it attractive for long-term investments.

Nuances when buying a home

Montenegro

Real estate purchase procedure: In Montenegro, foreigners can purchase real estate without significant restrictions, except for agricultural land. The purchase process includes several stages: selection of the object, signing a preliminary contract, making a deposit (usually about 10% of the value), checking the legal purity of the object and the conclusion of the main contract at the notary. Registration of ownership takes 1-2 months on average.

Additional Costs: When buying real estate in Montenegro, the buyer pays property transfer tax in the amount of 3% of the appraised value of the property. In addition, the costs of notary services and registration should be taken into account, which can amount to about 500-1,000 euros.

Estimated real estate prices: The cost of housing in Montenegro varies from region to region. In popular tourist destinations, such as Budva or Kotor, prices for apartments start from 1,500 euros per square meter. In the capital, Podgorica, prices can be somewhat lower - from 1,200 euros per square meter.

Residence permit: Buying real estate in Montenegro offers the possibility of obtaining a temporary residence permit. However, certain requirements must be met, including proof of financial solvency and health insurance.

Spain

Real estate purchase procedure: In Spain, foreigners have the right to purchase real estate without restrictions. The process includes obtaining a foreigner identification number (NIE), opening a bank account, signing a preliminary contract with a deposit (usually 10% of the price) and concluding the final contract of sale at a notary. Transaction processing time can vary from several weeks to several months.

Additional Costs: Buyers of real estate in Spain should take into account additional costs, which can amount to up to 10-15% of the value of the property. These include: property transfer tax (from 6% to 10% depending on the region), notary fees, registration fees and legal fees.

Estimated real estate prices: Housing prices in Spain vary considerably from region to region. In large cities, such as Barcelona and Madrid, the cost per square meter can exceed 3,000 euros. In coastal areas, such as on the Costa Blanca, prices for apartments start from 1,500 euros per square meter.

Residence permit: The purchase of real estate in Spain for an amount of 500,000 euros or more provides the opportunity to obtain a "golden visa" - a residence permit for investors. This allows you to move freely around Schengen countries and enjoy the benefits of being a resident of Spain.

Mortgage lending: Foreign buyers can take out a mortgage with Spanish banks. Usually lenders require that the monthly mortgage payment does not exceed 30-35% of the borrower's monthly income. Interest rates and terms vary depending on the specific bank and the borrower's financial situation.

Note to self: Some regions of Spain, such as Catalonia, are planning to increase the property transfer tax for large investors and on the purchase of entire buildings from 10% to 20% from 2025. This is aimed at combating speculation in the real estate market.

Prospects for growth and development of resort real estate

Montenegro

Montenegro continues to attract the attention of investors due to its picturesque landscapes and growing tourist flow. In 2024, the country's real estate market is thriving due to strong demand, improving construction activity and a robust economy.

In coastal towns such as Kotor and Budva, real estate prices have increased significantly. For example, The cost of a three bedroom house is around €300,000-400,000.

Spain

Spain remains one of the leaders in the resort real estate market. National real estate prices continue to rise in 2024. In coastal regions such as the Costa del Sol and the Balearic Islands, price increases reached 20%.

In 2025, the hotel sector in Mallorca expects bookings to grow to 20% and rates to increase by 5%. An important factor is the increased interest of middle and high-income tourists, which contributes to the development of the rental market and increased return on investment. In Barcelona and Madrid, real estate prices remain stable, with moderate increases between 5-10%.

Overall, the growth prospects for resort real estate in Spain look positive, especially in popular tourist areas.

Yield from short-term and long-term leases

Montenegro

Montenegro's rental property market continues to develop, especially in coastal regions such as Budva and Kotor. The demand for short-term rentals increases during the tourist season, allowing property owners to earn a significant income. The average cost of renting a one-bedroom apartment during the season can be as high as €50-€70 per day. Out of season, this figure drops to €30-€40 per day.

Long-term rentals in Montenegro are less common, but can also be profitable. The monthly rent for a one-bedroom apartment is approx. €300-€500Depending on the location and condition of the accommodation. However, it is important to keep in mind that outside the tourist season, the demand for long-term rentals may decrease, which affects the stability of income.

Spain

Spain offers a more mature and stable rental real estate market. Short-term rentals, especially in tourist centers such as Barcelona, Madrid and the Costa del Sol, bring significant profits to owners. The average cost of renting a one-bedroom apartment in popular tourist areas is approx. €80-€150 per day in the high season. According to the data, the profitability of tourist rentals can be by 60% above.than from a long-term lease, even with additional taxation.

Long-term rentals in Spain also remain attractive to investors. In major cities such as Madrid and Barcelona, monthly rents for a one-bedroom apartment range from €700 to €1,200. However, there has been an increase in room rental prices in 2024, reaching an average of . €520 per month for a room of about 8 square meters. This indicates a high demand for rental housing, which can be profitable for property owners.

Comparison and recommendations

There are several factors to consider when comparing rental yields in Montenegro and Spain:

• SeasonalityIn Montenegro the income from short-term rentals is highly dependent on the tourist season, while in Spain the tourist flow is more evenly distributed throughout the year.
• Regulation: Spain has stricter laws governing short-term rentals, which may require additional licenses and compliance with local regulations.
• Profitability: Although the initial investment in real estate in Spain may be higher, the stable demand and the possibility of higher rents make it an attractive long-term investment.

Economy and Life

Montenegro

Montenegro attracts many with its picturesque nature and relatively low cost of living. Average salary here is about 718 euros per month. citeturn0search2 Rent a studio apartment In coastal towns such as Bar or Budva, the cost will be 270 to 350 euros per month.

Foodstuffs in Montenegro are affordable. For example, a liter of milk costs about 0.80 eurosa loaf of bread-- 0.50 eurosand a kilo of apples 1.20 euros. Public utilities for a small apartment costs about 100 euros per month.

Education public schools are free of charge for residents, but instruction is in Montenegrin. In larger cities, such as Podgorica, there are private schools with instruction in English or Russian, where tuition is about 450 euros per month.

Medical care in Montenegro is represented by both public and private institutions. Public clinics provide basic services free of charge for residents, however, many people prefer to go to private clinics because of the higher quality of service, where a doctor's appointment costs approx. 30-50 euros.

Spain

Spain is known for its high standard of living and developed infrastructure. Average salary in the country is about 2000 euros per month. Rent a studio apartment in the center of Madrid or Barcelona can cost 800 to 1200 euros per month, while in smaller cities prices are much lower.

Foodstuffs in Spain are of high quality and variety. A liter of milk costs about 0.90 eurosa loaf of bread-- 1.10 eurosand a kilo of apples 1.50 euros. Public utilities for an 85 m² apartment costs approx. 120-150 euros per month.

Education in public schools is free of charge and is conducted in Spanish. There are also international schools with English-language instruction, where tuition fees can be as high as 1000 euros per month.

Medical care in Spain of a high standard. The public health care system provides free services for residents, but many people choose private health insurance to access a wider range of services and reduce waiting times. The cost of private insurance starts at 50 euros per month.

Montenegro offers a lower cost of living, which attracts many expats and retirees. Spain, although more expensive, offers a high level of comfort and developed infrastructure, making it attractive to those who value quality of life and are willing to pay for it.

Education and medicine

Montenegro

Education

Montenegro's education system includes pre-school, secondary and higher education. Foreign students may enroll in local universities by submitting a high school diploma and demonstrating knowledge of the Serbian language. Tuition at public universities is free of charge for Montenegrin citizens, but foreign students are subject to a fee of approx. 1,500-3,500 euros per year. Some universities offer programs in English, which makes it easier for international students to adapt.

Medicine

The health care system in Montenegro is evolving, providing both public and private health care services. Public health care facilities are available to citizens and residents, but the quality of care can vary. Many foreigners prefer to go to private clinics, where the cost of a doctor's consultation is approx. 30-50 eurosand specialized procedures may cost more. It is advisable to take out medical insurance to cover the costs of treatment in private facilities.

Spain

Education

Spain offers high quality education that is recognized worldwide. International students can enroll in Spanish universities by submitting the appropriate academic documents and proving proficiency in Spanish or English, depending on the program. Tuition fees at public universities for international students range from 750 to 2,500 euros per year for undergraduate studies and may reach 3,500-4,500 euros per year for a master's degree. Private universities set their own prices, which can be much higher.

Medicine

The Spanish health care system is considered one of the best in the world. The public health care system provides free medical services to citizens and residents, financed by taxes. Non-resident foreigners can access emergency medical care free of charge, but private health insurance is recommended for routine treatment. The cost of private insurance depends on age and health status, but on average is as follows 50-200 euros per month. Without insurance, a consultation with a private physician will cost approx. 100 eurosand specialized procedures can cost considerably more.

Roads and transportation

Montenegro

Montenegro is a country with picturesque landscapes, but the transportation infrastructure here is still developing. Major roads connect major cities and tourist centers, but the the quality of the coating may vary. In mountainous areas, roads are often narrow and winding, requiring drivers to pay extra attention.

Public transportation is represented by buses that connect the main settlements. However the schedule may be irregularespecially in remote areas. Intercity bus fares vary depending on the distance; for example, a trip from Podgorica to Budva will cost approx. 7-10 euros.

Rent a car - a popular mode of transportation among tourists and investors. Rental cost starts at 20-30 euros a day depending on the season and class of car. However, it is worth bearing in mind that parking spaces in tourist areas may be limitedand parking is often paid for.

Spain

Spain has developed and modern transportation infrastructure. Highway network (autopistas) and expressways (autovías) cover the whole country, providing convenient connection between cities. Road quality is highwhich makes for a comfortable ride.

Public transportation in cities is represented by subways, buses and streetcars. For example, in Barcelona there are extensive metro networkwhich allows you to quickly get to any part of the city. Fare depends on the type of ticket. Map of T-Usualproviding unlimited number of trips within 30 daysit's worth about 21.35 euros for one zone. T-Casual ticket on 10 trips would cost about 12,12 euros. citeturn0search1.

Railroad connection between cities is carried out by high-speed trains AVEthat are traveling at speeds in excess of 300 kilometers per hour.. For example, a trip from Madrid to Barcelona takes approx. 2.5 hours.. Ticket price varies according to class of service and time of purchase, ranging from 40-50 euros with early booking.

Rent a car in Spain is also popular, especially for traveling through the regions. Rental prices start at 25-35 euros per daydepending on the city and the season. Parking in city centers often for a fee, and it can be difficult to find an empty seatespecially during tourist season.

Spain offers a more developed and diverse transportation systemwhich provides greater mobility and comfort. Montenegroalthough it does have natural beauty, requires more autonomy in organizing movementespecially in remote areas.

Legal and tax specifics

Montenegro

The process of buying real estate in Montenegro relatively simple, but still requires care. Foreigners can buy real estate without special restrictions if they do not intend to purchase agricultural land. However, it is important to remember that you will need a local legal representative to formalize the transaction to avoid potential legal pitfalls.

The main stage of the purchase is. purchase agreement signing and its registration with the local land registry. You will also need to obtain a tax number (PIB), which is mandatory for all real estate transactions. The cost of legal services in Montenegro varies from 500 to 1,000 eurosdepending on the complexity of the transaction.

With regard to taxes, Montenegro applies exemption from value added tax (VAT) on the purchase of real estate if it was used as a residential property. However, if you purchase commercial real estate, you will need to pay VAT - it is approx. 21% of the transaction value.

Annual property tax approx. 0.1-0.3% of the market value of the property. The specific percentage depends on the municipality. It is a fairly low tax compared to most European countries.

Taxes on the sale of real estate are also available, and they may amount to 3% of the transaction valueIf you sell the property three years after purchase. If the holding period is shorter, capital gains tax is as follows 9%.

Spain

Spain is a country with a more complex taxation system and many legal nuances to consider. However, it offers a higher degree of protection of property rights, which is an important factor for foreign investors.

The process of buying real estate in Spain involves several mandatory steps. In addition to obtaining NIE (Número de Identificación de Extranjero)Foreign buyers need to open a Spanish bank account. All real estate transactions in Spain also require a notary to certify the transaction. The cost of legal services may be 1,000-2,500 eurosDepending on the complexity of the transaction and the value of the property.

Real estate taxes in Spain are pretty high. You will have to pay the following taxes at the time of purchase:

1. Property transfer tax (ITP) - from 6% to 10% of the value of the property depending on the region.
2. VAT RATE - 10% when purchasing a new home (if the property is sold by a builder).
3. Tax on the execution of documents - about 1-2% of the transaction value.

In addition, the annual property tax (IBI) in Spain depends on the location and value of the home, but averages from 300 to 1,000 euros per year for properties of average value. In some cases, if the property is rented out, additional charges may apply. taxes on rental incomewhich range from 19% to 24% depending on the region.

When selling real estate in Spain, you also need to consider capital gains tax (plusvalía). This tax depends on the increase in the value of the land during the ownership of the property and can vary depending on the region and time of ownership. The average amount of this tax can range from 5% to 15% of the difference between the purchase and sale price.

The main difference between Montenegro and Spain in terms of taxes is that in Montenegro property taxes and transactions are lower and easier for foreigners. Spain, on the other hand, has higher taxes, but also a more stable and protected system, which can be an important factor for those looking for long-term stability.

What to choose for an investor: Montenegro vs Spain?

Choosing between Montenegro and Spain for real estate investment depends on your goals, budget and preferences. Let's consider the pros and cons of each market.

Pros of investing in Montenegro:

• Low real estate prices. In Montenegro real estate is still affordable, especially when compared to other European resorts. For example, apartment with sea view in Budva could cost anywhere from 80,000 to 150,000 euros depending on the area and location. This is a great opportunity for those who are looking for not only a profitable investment, but also a vacation in one of the most beautiful parts of Europe.
• High value growth potential. Montenegro is still an untapped market and its development is only gaining momentum. Given the increasing tourist flow, especially in the season, real estate prices in coastal areas are increasing every year. Even now, buying a home on the coast can be a profitable investment in the long term. For example, in Kotore or Tivate prices over the last 2-3 years have increased by 10-20%and this trend will continue.
• Ease and accessibility of purchase for foreigners. Foreigners can easily purchase real estate in Montenegro, and the purchase procedure is relatively quick and does not require much bureaucratic effort. Transactions will require a minimal set of documents: passport, identification number, and possibly proof of financial solvency.
• Inexpensive maintenance costs. The annual real estate tax in Montenegro is only 0,1-0,3% of the assessed value, which is one of the lowest in Europe. This makes Montenegro a great option for those looking for minimal property maintenance costs.

The cons of investing in Montenegro:

• Less developed infrastructure. Although Montenegro is actively developing the tourist sphere, but the infrastructure in some regions still leaves much to be desired. For example, if you want to buy property in more remote areas, you may lack quality roads or developed social services.
• Seasonality of the rental market. Despite the growth of tourism, short-term rentals in Montenegro are highly seasonally dependent. During the winter period the demand for rentals can significantly decrease. This is important to consider for investors focused on stable income.

Pros of investing in Spain:

• Developed infrastructure. Spain is not only stunning beaches and architectural masterpieces, but also one of the most developed infrastructures in Europe. Major cities and popular resorts have everything from quality medical care to transportation links. For example, in Barcelona or Madrid The purchase of real estate is often justified not only for personal residence but also for commercial purposes.
• Stable real estate market. Spain is one of the most stable countries in terms of the real estate market. Even in the face of global economic changes, prices in regions such as Costa del Sol or Canary Islands, remain relatively stable. Cost apartments in the center of Barcelona can range from 250,000 euros and higher, depending on the neighborhood.
• Year-round rental demand. Unlike Montenegro, Spain offers a consistently high demand for rental properties throughout the year. Especially in demand are rentals in major cities and tourist destinations. For example, in Malagué or on Costa Brava it is always possible to find tenants both in summer and winter. This gives confidence that the rental income will be stable.
• High standard of living and security. Spain is a country with a high standard of living, developed health care and education system. This makes it attractive not only for investors, but also for those who want to live here.

The cons of investing in Spain:

• High real estate prices. In major cities and popular tourist areas, Spain has long been an expensive market. For example, the cost of apartments in the center of Barcelona may reach 350,000-500,000 euros depending on the area, and such prices remain stable, making investments more costly compared to Montenegro.
• Complex bureaucracy. In Spain, foreigners need to go through a more complicated procedure to buy real estate. For example, it is necessary to obtain NIE (alien number), as well as to address tax liabilities. In addition, real estate tax and other fees may be as high as 6-8% of the transaction valuewhich makes the purchase more costly.

Recommendations for investors

• For those looking for growth prospects and affordable rates: Montenegro is a great option. The market there is actively developing, and you can get a good return in the future by investing in real estate on the coast. The approximate cost of a sea view apartment in Montenegro is from 80,000 to 150,000 euros. It's a chance to get into a growing market at relatively affordable prices.
• For those looking for stability and developed infrastructureSpain is suitable for those who want to invest in real estate with a guarantee of stability and long-term income. Despite the higher prices, the real estate market in Spain is stable, and resort and urban real estate remains in demand all year round. In major cities such as Barcelona or Madrid, the price of an apartment can start from 250,000 euros.

In conclusion, the choice between Montenegro and Spain for real estate investment depends on your goals and preferences. Montenegro offers low prices and high growth potential, while Spain offers a stable market with developed infrastructure and year-round rental demand. Evaluate your options and strategy to make the right choice that will bring the greatest benefits in the future.