THE EVER-ATTRACTIVE MONTENEGRO
Montenegro is richly endowed. With a unique cultural heritage, gastronomy, sunny beaches, a Mediterranean climate, proximity to Italy and Croatia, and a reasonable cost of living, the Montenegrin beauty has a lot of advantages.
Its real estate market is currently one of the most reasonable among luxury destinations in Europe and is ideal for purchasing a primary or second home or for making a rental investment.
The average price of an apartment in Montenegro is still a few times lower than in Paris, but rental prices are nearly on the same level. This puts the Montenegrin market under pressure from international clients, who are moving to Montenegro or seeking to invest there.
Montenegro continues to be the top destination for global investors like Azmont Investments, Orascom Developments, Qatari Diar, or Investment Corporation of Dubai (ICD). The growth and dynamism make Montenegro’s coastal cities stand out for anyone looking to live comfortably or looking to capitalize on their investment. The market is still on an upward trend, both for sales and rentals.
The average price is upwards of euro 2,500 per square meter, reaching euro 10,000 per square meter for prestigious homes offering spacious proportions in a landscaped location.
Offering beautiful architecture, spacious villas and apartments along with still affordable prices and perfect quality of life, Montenegro increasingly attracts affluent families who are looking for a safe place for their kids, while still being in the center of Europe. Today nearly 80% of luxury property purchases are made by international investors, including many Europeans - mainly from Norway, France, England, and Russia.
Popular for its location, safety, climate and regained international reputation, along with continuous development of new prestigious estates and marinas, Montenegro shows unfailing dynamism on the European real estate market.
MONTENEGRO IS AN OPEN ECONOMY, DEVOTED TO IMPROVING LUXURY TOURISM AND BUSINESS
Montenegro’s economy is small but open, and focused on encouraging new businesses. It is recognized as an emerging economy with significant growth potential.
The tax system has undergone substantive reforms in order to create a business-friendly environment and attract foreign investors. The tax regime ranks amongst the most competitive in Europe.
PRINCIPAL TAXES IN MONTENEGRO:
Personal Income Tax – 9% (11% for gross personal income)
Corporate Income Tax – 9%
Withholding Tax – 9% on dividends/profit distribution, capital gain, royalties, intellectual property rights, rental income, consulting, marketing and auditing services
Investors are able to remit dividend and interest profits fully, without any restrictions.
Value Added Tax – 21% (reduced to 7% for tourism, 7% on marine related services and 0% for some basic products)
Another important aspect is the use of euro as currency. It has a positive impact on foreign investors, since it significantly reduces inherent foreign exchange risk as well as inflation risk when conducting business in Montenegro.
In late 2010, Montenegro was granted candidate status for European Union Membership and in June 2012, the European Council opened accession negotiations. In December 2015, the country also received a formal invitation to become a member of NATO and finally became a member in June 2017.
The country is dedicated to improving luxury tourism and infrastructure. International bodies such as the World Bank, the European Investment Bank and the EBRD have partnered with the Government of Montenegro and foreign engineering firms to improve the country’s infrastructure. It is predicted that Montenegro will become one of the hottest tourist destinations in the following years. It also has the potential to become a magnet for investment. Apart from tourism, there is also significant potential in real estate, infrastructure, agriculture and renewable energy.
REASONS TO INVEST
- Dynamic economic growth and development
- Multi-ethnic harmony and political stability
- Strategic geographic location, full sea access
- Foreign and domestic investors have the same rights
- Easy business start-ups (four days to set up a company)
- The tax system is one of the most competitive in Europe (9% tax rate)
- Euro as the national currency
- Excellent quality of life
- Hub for regional business
- Qualified human resources
- Young population with multilingual talent