Montenegro is a small mountainous country of the Balkan Peninsula with a population of just over 620,000 people, whose Western border is washed by the Adriatic sea. At one time, it was part of Soviet Yugoslavia, and now it is a candidate member of the European Union and relatively recently (since 2017) is part of NATO. Real estate in Montenegro is a popular investment destination for Russian residents: buyers are attracted by the climate, prices and proximity to the largest European countries.

Best areas to live in

The choice of location depends on the purpose of purchasing real estate: periodic beach holidays, purchase for further moving to permanent residence and for doing business, search for a “place in the sun” in old age. The capital Podgorica is located in the flat part of the country a few dozen kilometers from the sea, but the main and largest cities are located along the coast. From North to South the coastal part of the country is occupied by the municipalities of five cities:

  1. Herceg Novi (or Herceg Novi) stands on a mountain and is known for its steep terrain, with many staircases connecting the coast with the mountainous areas of the city.
  2. The sea port of Kotor is famous for Its old town, which is protected by UNESCO. Its red tiled roofs are the hallmark of The city.
  3. Budva is a business center and the largest resort in Montenegro with all the pros and cons of a tourist city. Developed infrastructure attracts tourist flows during the season, the cost of apartments and houses is higher compared to other areas. The bus ride to Herceg Novi takes 1.5 hours. There are smaller localities around Budva, whose names are often found in real estate ads: Becici, Petrovac, Przno, Sveti Stefan.
  4. Port Bar is one of the sunniest cities in Europe (270 Sunny days per year). The Bar has a railway station that connects the city with the capital Podgorica, as well as a ferry service to Italy.
  5. Ulcinj, near the border with Albania, is the southernmost city in the country with a significant share of the Albanian population.

All these localities are connected by a two-lane Adriatic highway as part of the European route E65.

Prices for apartments and villas

Why do Russians buy property in Montenegro? This is due to the fact that housing on the Adriatic will be cheaper compared to houses and apartments with similar characteristics in Russia. In addition, the visa-free regime makes it much easier to enter the country. In 2019, Russians can stay in the country without a visa for up to 90 days in the period from April 15 to October 31, and the rest of the time-no more than 30 days.

The official currency of Montenegro is the Euro, so all prices on profile real estate sites are listed in this currency. Often offers that include the subsequent free registration of a residence permit (residence permit) as a bonus when buying.

The cost of housing, as a General rule, depends on the location and footage. For example, a Studio of 23 square meters in Herceg Novi half a kilometer from the sea with a Parking space and a residence permit as a gift can be purchased for 29,000 euros, and a Villa of 340 square meters with a pool in Ulcinj will cost almost 600,000 euros. The average price tag for an apartment in a new building in Budva with a sea view and an area of 52 square meters is 110000 euros. These amounts should be used by potential buyers.

According to unofficial data, about 20,000 Russian citizens purchased real estate in the country. Most of them do not live in Montenegro permanently, but come at different times of the year. Homeowners do not pay tourist tax.

Buying process

To buy an apartment in Montenegro, a foreign passport is enough. When registering real estate as property, the algorithm of actions will be as follows:

  1. Selecting an object (most often through a realtor or on a website with ads).
  2. Registration of the contract of sale with a notary (in Montenegrin).
  3. Transfer of documents by a notary to the cadastral and tax services.
  4. Obtaining a certificate of ownership by the new owner.
  5. Payment of tax on acquisition of real estate.

The buyer will face expenses at different stages of acquisition and ownership of the property:

  • cost of own real estate;
  • payment for notary services;
  • 3% tax — it does not need to be paid if the property is purchased in a new building and the developer is a VAT payer;
  • payment for realtor services (if applicable);
  • court interpreter’s fee for interpretation and sometimes written translation (if the contract needs to be translated into Russian);
  • annual property tax.

In order for the owner to legally rent out his apartment in Montenegro, the administration of the locality must obtain a permit, which is renewed annually (its absence threatens a fine). The tax on delivery depends on the area of housing.

How to get a residence permit

According to the law on foreigners in 2018, a residence permit in Montenegro can be obtained for several reasons, including the purchase of residential or commercial real estate of any value. An apartment or house should not have encumbrances, in other words, housing purchased with a mortgage will not allow you to get a residence permit.

The residence permit is granted for 1 year with the possibility of extension. With this permission, you will not be able to get a job legally, but you can open an account in a local Bank and receive rent from renting out housing — this is a legitimate source of income. Real estate objects are understood as:

  • apartments;
  • villas;
  • cafes and restaurants;
  • offices.

Conditions for obtaining a residence permit:

  • passport (the validity period of which must be at least 3 months longer than the period of granting a residence permit, otherwise the term of the latter will be reduced);
  • bank statement about the presence of a minimum of 3650 euros on the account;
  • medical insurance policy;
  • proof of availability of a place to live (in this case, a document of ownership).

When purchasing real estate, pensioners receive a residence permit on a General basis, no special privileges are granted to them. You can get a pension from Russia on a Bank card.

Important! It will not be possible to make Montenegro a permanent place of residence (get permanent residence) on the basis of purchasing real estate, even if you repeatedly extend your residence permit. To do this, for example, you need to establish a company in Montenegro and meet a number of additional conditions.

Briefly about climate, education, and medicine

On the coast, the climate is Mediterranean, with long hot and relatively dry summers and short winters. In the interior of the country, a temperate continental climate prevails, the temperature in winter can fall to -10°C, precipitation in the form of snow lasts for several months. In General, the climate is very favorable for living.

School-age children with a residence permit can study in Russian schools in Budva and Podgorica, but tuition is paid. Another option is free tuition at a Montenegrin state school, which is taught in the state language. From a long-term perspective, the second option is preferable.

To continue education for the purpose of obtaining a specialty, you will need a local school graduation document or a Russian school certificate, translated and certified by the Ministry of education of Montenegro. Tuition is paid, knowledge of the language is desirable, but not mandatory. for example, the Institute of management in Herceg Novi accepts applicants who do not know Montenegrin. In any case, the student will have to learn it in the future.

The health insurance policy must be issued before entering the country, its cost depends on the validity period and the selected set of insurance cases. When obtaining a residence permit through the purchase of real estate rights to free medical care does not occur, but it exists and health insurance, which is one of the conditions for obtaining a residence permit.

Conclusion

Buying an apartment or Villa in Montenegro is a responsible business for a Russian citizen. The pros and cons should be calculated, especially given the current international climate. The only climate that you should not worry about in Montenegro is the mountain — sea Adriatic, which attracts our compatriots and tourists from all over Europe.