Retiring in Montenegro – Top 5 Reasons for Making Your Move

27.03.2023

You’ve worked long and hard so now you deserve to retire in style! Have you considered Montenegro, if not then why not? It’s become one of the most popular places to visit in recent years, has highly favourable living conditions, is pushing for full EU membership, has low tax and cost of living rates, a competitive real estate market & a gorgeous landscape with a rich cultural history. Who wouldn’t want to be a part of that?

Here’s five reasons why Montenegro could be the perfect place for you:

Highly Favourable Living Conditions

Thanks largely to a rise in tourism over the last few years along with a massive push on economic stability the standard of living in Montenegro is just as high as many other European countries, and this will only continue to grow as foreign investment increases. Many countries such as Germany, the UAE, America, Austria and the Netherlands have decided to back projects with net foreign direct investment contributing a total of 623 million USD in the first three quarters of 2022, which is around a 70% increase on the same period of 2021. Main areas include Tourism, Real Estate, Energy, Telecoms, Infrastructure and Banking which have all received and will continue to receive significant interest.

The climate is also a big draw here, as it gets warm without getting overly excessive, reaching temperatures of around 27 degrees in the high summer and lows of around 4 to 11 degrees in the Winter.

Full EU Membership

Montenegro has long been pushing for EU ascendancy, and although they aren’t fully fledged members yet, they have started the process, especially as the Euro has been adopted as the official currency. Of course, this greatly eases the process for tourists and expats, as many will be familiar with the Euro already, especially those currently residing in Europe.

Along with the passport benefits (which will come as a result of joining the EU & the additional country access it will grant visa free) there will also be a huge uplift in trade, financial assistance, and support for development and on-going reforms.

Of course, there’s still a lot of work to do, but it does enjoy widespread support for it’s bid by other EU member states + there is a healthy amount of support for EU ascension from it’s citizens, many of whom will benefit greatly from new laws and treaties.

Low Tax & Cost of Living Rates

Montenegro has long been considered a ‘tax haven’ and attracts many foreign nationals to it’s shores because of it’s highly favourable tax conditions. Property purchase tax is between 0%-3% depending on who you buy the property from, Corporate and Personal Tax rates are between 9% and 15%, Capital Gains tax is also 9% and Inheritance and Pension tax rate is currently set to 0%. It also has in place double taxation treaties with many countries, so you won’t get taxed twice.

By European standards the cost of living in Montenegro is also relatively low with estimated monthly expenses set to be around €450 for a single person or €1500 for a family of four. This would probably equate to around 43% lower than the UK (probably more now given the situation there and the increase in rates). Rental prices are also significantly cheaper along with property sales prices, and you’ll also save on food, fuel and other commodities, especially utilities which can cost on average €110 per month. Notably, whilst it is cheaper, they don’t sacrifice on the quality, which is consistently high.

A Competitive Real Estate Market

If there’s one thing that foreign investment and tourism has done for Montenegro, it’s bought significant improvements in the Real Estate Market, with new developments being released onto the market almost daily, comprising of apartments, family complexes, resorts and villas. You’ll find loads of options on offer here and in some of the best places, including the likes of Budva, Bar, Kotor, Tivat and Ulcinj.

Whether you want something in the coastal areas, or in the more rural areas, there really is something for everyone, with all budgets catered for. A growing trend in Montenegro, is also to snap up a land plot and build your own home, complete with amazing views!

Much like anywhere else property prices will vary, and of course if you want to be in a more affluent neighbourhood you’ll pay for the privilege of doing so, however, it’s a fact in Montenegro, that many of the new builds you’ll find now will offer the luxury without the big price tag. As demand for Real Estate continues to grow here, if you do end up buying at the right time, it could be worth a small fortune in the years ahead. Another key point of buying here, is that as a foreigner it’s not that difficult as long as you stick with the official channels and choose a reputable Estate Agent like CMM Montenegro to help you.

A Gorgeous Landscape & Rich Cultural History

Montenegro is simply one of the most beautiful countries in the World with plenty of journalists and media outlets that will back up that statement. Kotor, for example, is on the UNESCO World Heritage list plus it’s Bay offers stunning views of the surrounding mountains and the Adriatic Sea. Steeped in History with Italian and Greek influences you’ve got the old town fortifications, the old town itself with it’s beautiful Cathedral, the many churches and of course the ‘Our Lady of the Rocks’ just off the coast of Perast.

On top of that, you’ve got the Ostrog Monastery, the Lipa Cave, Budva Old Town and Citadel, Sveti Stefan Island as well as all the National Parks at Lovcen, Durmitor and Biogradska. Don’t forget there’s also Lake Skadar along with the Black Lake, Piva Lake, Sas Lake and Bukumirsko.

Festivals also take place at several times throughout the year which really are a must see, including the Venetian style balls, concerts, performances and parades in Kotor, Tivat & Budva, along with the more modern Spring Break Festival at Kamenovo. The most popular festival is of course Boka Night in Kotor, with the boats sailing along the waterfront, and a huge open air concert near the old town.

Further Information

To be honest, it doesn’t just end there, and there’s plenty more reasons as to why you should consider Retiring in Montenegro. If you want further information, CMM Group Montenegro would love to help, please do contact us & we hope to see you here soon!