Montenegro: Country Overview

Natural beauty and soon-to-be EU-Member State

Montenegro, a small nation of the Balkans, has amazing mediterranean beaches, medieval architecture and rugged mountains. It’s economy is based on a mix of tourism, energy production and agriculture. Many wealthy immigrants are drawn to the country due to its low taxes, proximity to Europe and visa-free EU access once you become a citizen.

The country convinces with its mild climate, affordable gastronomy, and many outdoor sports. The ports along the coast of Montenegro are well-known to harbour plenty of superyachts all year around. Whether it’s exploring the UNESCO-listed Bay of Kotor, hiking in the majestic Dinaric Alps, or soaking in the sun on the Budva Riviera, Montenegro has a lot to offer for its comparably small size.

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Montenegro: Residency by investment

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Montenegro – Country Highlights

Economy

GDP (nominal): $7.06bn
Comparable to the Maldives and Togo

GDP/capita: $11,339
Comparable to Brazil and China

GDP growth: 4.5% (annual, 2023)
Steady rate of 3.5% forecasted (2024-2028)

Population

Size: 620,000 people

Median age: 39 years
Compares to 48 in Italy and 45.8 in Greece

Density: 46 people/km²
Comparable to Lithuania and Colombia

Climate

Average temperature: 11°C
Winter 3-10°C, Summer 18-30°C

Sunshine hours/year: 3,247h
Compared to 1,749h in Switzerland or 3,314h in Cyprus

Average precipitation/year: 1290mm
Comparable to the UK and the Bahamas

Language

Montenegrin 37% (official)
Serbian 42.9%, Bosnian 5.3%, Albanian 5.3%, Serbo-Croat 2%, other 3.5%, unspecified 4%

Religion

Orthodox 72.1%
Muslim 19.1%, Catholic 3.4%, atheist 1.2%, other 1.5%, unspecified 2.6%

Security

Legatum Safety Ranking: 41st of 167
Comparable to Cyprus and France

Armed Forces of Montenegro: 2,350 (active)
Last military conflict was in 1999 during the NATO bombing of Yugoslavia.

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Real estate market

Average Price per Square Meter: $3386 (Budva)
$2143/m2 in Podgorica (Capital)

Gross Rental Yield
In City Center: 5.8 – 6.3%
Outside City Center: 5.5 – 6.1%

Increasing interest from foreign investors.

Government

Partly Free Country
Freedom Score 69/100 according to the Freedom House World Report

Parliamentary Republic
Executive: President & Prime Minister
Legislative: Parliament (4 year term)
Judiciary: Supreme Court

Elections are every 5 years. Montenegro is in accession to become a EU member.

Taxes

Worldwide tax law
9-15% tax on global income for residents
9-15% tax on local income for non-residents
13-15% local surtax
7-21% value added tax

Tax haven
9-15% capital gains tax
9-15% crypto tax
10-30% dividend tax
3% inheritance tax

Cost of living

Annual Inflation (CPI): 8.27% (2023)
Latest 4.35% (Feb 2024); forecasted to decline <2%

Cost of fuel: $1.45/liter

Cost of electricity: $0.09/KWh

Annual cost of food: $2,077
Compared to $3,234 in France and $3,168 in Italy

Healthcare

Social Health Insurance
95% of people are covered. Montenegro ranks last in European comparison. Private sector is experiencing recent growth and staff speaks English.

Doctors per capita: 2.77
per 1,000 people, WHO Global Workforce Statistics, 2021

Life expectancy: 76.3
(HMD 2023)

Education

Free public school through high school
98.98% adult literacy rate

Tertiary Education attainment: 21.45%
of adult population; Panama ranks 48th globally

Good international school are available with international degrees and English speaking.

Living in Montenegro: Unique Benefits

No military service

In 2006 Montenegro decided to end compulsory military service. Since then the country has maintained a purely professional army. Being a citizen of Montenegro means you and your children don’t have to do any military service.

Visa-free access to EU and Russia

Passport holders of Montenegro enjoy visa-free or visa on arrival in 127 countries in total. It’s very special that Montenegrins have both visa-free access to the EU and to Russia.

Montenegro EU Candidate

Montenegro applied to become a member of the European Union in 2008 and at the moment it is expected that it might become a member of the EU in the year 2025. Citizens of Montenegro have a good chance to be soon citizens of the European Union as well.

Euro outside of EU

Since 2002 Montenegro uses the Euro as their domestic currency, although they are not yet part of the EU. So you can open Euro bank accounts in Montenegro without being in the European Union yet.

Member of the NATO

Montenegro has a tiny military of just 2,000 soldiers, however, it is a full Member of the NATO since 2017. This gives the small country the enormous security of being defended by all 32 powerful NATO alliance member countries.

Duty-free trade

Montenegro enjoys free trade and customs agreements with the whole European Union, Switzerland, Turkey and many other countries. This gives you easy access to all European products and European online shopping.

Montenegro: surprising must-knows and fun facts

Venice of the Adriatic

The city Perast, with its baroque architecture and scenic waterfront, is reminiscent of Venice and boasts 16 churches and 17 grand palazzos. It’s a travel’s secret to enjoy the coastal towns of Montenegro and the beautiful Adriatic Sea there with much less tourists than in other countries of the region.

Europe’s deepest canyon

The Tara River Canyon in Montenegro, part of the Durmitor National Park, is Europe’s deepest and longest canyon. Walking along the Tara River Canyon you can enjoy amazing wide views and also swim in the cool waters. If you are more adventurous you can try zip lining, canyon rafting and hikes through this untouched national park.

Home to Europe’s first national park

Durmitor National Park, established in 1952, was the first national park in Europe, showcasing Montenegro’s commitment to conservation and natural beauty. The park contains 48 mountains which are up to 2,500 meters high, 18 glacial lakes and the three canyons Draa, Susica and Tara. In winter you can even go skiing and snowboarding for around 120 days a year at Savin kuk, Štuoc and Javorovača.

A nation of olive trees

Montenegro’s Bar region is home to one of the oldest olive trees in the world, estimated to be over 2,000 years old, symbolizing peace and prosperity. Even today there are more than 95,000 olive and 80,000 citrus trees in the region around the Port of Bar. Enjoy the fragrance of the many orange, lemon and tangerine trees while going for a walk.

Only Fjord in southern Europe

The Bay of Kotor is actually a submerged river canyon, looking like a fjord and the only one of its kind in southern Europe, with an absolutely unique landscape. It’s an experience to enjoy the Bay of Kotor both from the water on a boat or by walking along its shores.

Tallest people in the world

Original Montenegrins, a south slavic ethnic group, are amongst the tallest people in the world. The average height for men is around 1.86m (6.1ft) and for women the average height is 1.71m (5.6ft). You’ll be living in a country of top models.

Montenegro: An overview

Montenegro, a small country of the Balkans, close to the EU, is known for its beaches, medieval architecture, and stunning national parks. This nation, in Serbian language also referred to as Crna Gora, thrives on a dynamic mix of tourism, energy production, and agriculture. It attracts wealthy immigrants with its low taxes, proximity to major European destinations, and visa-free access to the EU for citizens. Montenegrins enjoy the amazing nature like the UNESCO-listed Bay of Kotor or the sun-soaked Budva Riviera in their free time. Overall the country is a unique combination of cultural richness and natural beauty.

Economic and demographic highlights

With a GDP of $7.06 billion and a steady annual growth rate, Montenegro’s economy is on a strong upward trajectory, comparable to nations like the Maldives and Togo. The country has a population of 620,000, characterized by a variety of linguistic and religious backgrounds. Economic forecasts are optimistic, as Montenegro continues to attract global investors due to its strategic position and economic stability. The real estate market, in particular, has seen a significant increase in foreign investment, with property prices being still very low right now in European comparison and rental yields promising profitable returns.

Climatic paradise: Mediterranean meets mountains

Montenegro provides the perfect year-round European climate, with mild winters and warm summers. The average temperature ranges from cozy 3°C in winter to pleasant 30°C in summer. The summers are ideal to spend at the beach while the mountains of Montenegro are tall enough to provide snow for alpine skiing in winter. The country enjoys over 3,247 hours of sunshine per year, making it a sun-lover’s paradise. This comfortable weather supports a range of outdoor activities, from hiking in the Dinaric Alps to yachting along the Adriatic coast.

Investing in Montenegro: A pathway to residency

Montenegro offers an attractive residency by investment program, perfect for those looking to acquire property and to establish roots in a growing European nation. Pallas supports you in acquiring permanent residency and, ultimately, citizenship. This can be achieved by investing in Montenegro real estate. Cities like Kotor, Budva, and Podgorica offer a range of properties, from luxurious waterfront villas in Baosici to charming apartments in the historic Stari Bar, meeting the tastes and budgets of all investors.

Montenegro’s real estate market: An investor’s haven

The Montenegrin real estate market presents numerous opportunities with properties averaging $3,386 per square meter in Budva and $2,143 per square meter in Podgorica. Rental yields range from 5.5% to 6.3%, supported by a growing demand from international buyers. Whether you’re considering a retreat in Perast or a strategic investment in Tivat, Montenegro’s property market is well-positioned. With our leading realty and immigration service, we offer at Pallas tailored consultations to help you navigate this profitable market effectively.

Montenegro’s strategic advantages: Economic and political stability

Montenegro’s political system is stable, with democratic elections and a strategic path towards EU accession. The country operates under a parliamentary republic system, ensuring a balanced governmental structure and promoting international business relations. Additionally, Montenegro’s tax regime is highly favourable, with low tax rates on global and local income, making it an attractive destination for entrepreneurs and investors alike.

A hub for culture and outdoor enthusiasts

Montenegro is not just about economic benefits; it has a lot of culture and nature to explore. Relax while having a coffee in the baroque city of Perast or pump up your adrenaline while rafting in the Tara River Canyon. The country also boasts Durmitor National Park, Europe’s first national park. There you can hike while observing breathtaking landscapes and abundant wildlife.

Montenegro’s commitment to global standards: Healthcare and education

Despite its small size, Montenegro is committed to providing high-quality healthcare and education. The country offers comprehensive health insurance and has a growing private healthcare sector that meets international standards. Education is equally prioritized, with free public schooling and a variety of international schools offering English-language curricula, ensuring that expatriates feel at home.

Why choose Montenegro for your next investment?

Montenegro’s residency by investment program is a great way to get access to a country using the Euro as currency and soon becoming part of the European Union. With pleasant economic policies, a stable political climate, and a high quality of life, investing in Montenegro is an investment in your future. Whether you are drawn to its beautiful nature, solid economy, or rich cultural heritage, Montenegro offers a unique combination that is hard to find elsewhere. Explore the potential of Montenegro with Pallas, your trusted partner in real estate and residency services. Contact us today to learn how you can become a Montenegrin resident through real estate investment.