Montepro - Legal Advice in Montenegro

Q:Are foreign nationals allowed to own the land in Montenegro?

A: Foreign nationals can own bare land in Montenegro through a Montenegrin company.

Q:Will we be able to rent the property?

A: The World Travel and Tourism Council predicts an annual growth of 17% each year for the next decade in Montenegro. Surely, that means that there is plenty of rental potential. The season is still a bit short, though. At the seaside it is probably resonable to expect 60 days of full occupancy during the summer months at the ongoing rate of €10 per person per night. There is lack of good quality accomodation and the prices are rising.

Q:What is the weather like?

A: Superb! Coastal region gets about 240 sunny days a year. Average temperatures are very similar to those in Marbella in Spain, but the Montenegrin coast has slightly higher precipitation. For example average high temperature in July and August in Tivat is 30˚C. Climate varies significantly from one region to another.

Q:Are the low cost airlines flying to Montenegro?

A: Not at the moment but there are a lot rumours about Ryan Air starting a flight to Podgorica. The easiest way to fly to Montenegro at the moment is by JAT Airways directly from Heathrow to Tivat (operates only May to end October). Flights are still fairly expensive. Depending where your property is, you can also consider flying to Dubrovnik, Croatia, which is only a short pleasant drive away.

Q:Why buy a property in Montenegro?

A: There are many good reasons to buy a property in Montenegro. Here are the top 10 in our view:

1. Good rental income and capital appreciation
Most reputable sources report an annual growth of about 30%. This is more likely to be a conservative estimate than an exaggeration. It has been like this for a few years now so it cannot last. Or can it? Well, with the fastest tourism industry growth in the world, owners are likely to see their rental income grow and, consequently, the value of their properties. Reputable sources report that a rental return of 7% can be expected. Infrastructure is improving too. It might take a few years to reach those levels but Montenegro has to offer as much as Spain or the South of France.

2. Outstanding natural beauty (see photo gallery)
This place is stunning! Lord Byron wrote that at the birth of our planet the most beautiful contact of earth and sea happened in Montenegro. There are lakes here, too. Lots of them. And the deepest canyon in Europe , the 1300m deep canyon of the river Tara. And let's not forget that the country is called after its mountains. Any investor should take this into consideration in the context of "location, location, location" and not underestimate it. If natural beauty was an Olympic sport Montenegro would be competing for the medals! If you are buying a property only to make a quick profit and are considering selling soon, beware, you may not be able to let go.

A picture is worth a thousand words so please browse through our gallery.

Ooops, we forgot the obvious! There are 117 beaches along the Montenegrin coast! One of them has, in the past, been voted best in the world.

3. Climate
All of the above can be enjoyed in 240 sunny days per year. Locals traditionally open the swiming season on 1 May and it often stretches into October. In September, the temperature of the sea and the temperature of the air even out at about 25˚C. Going for a dip on those days is a truly wonderful experience.

In the north, there is enough snowfall for a skiing season to open on Christmas Day, even when there is little or no snow in the Alps. The skiing season usually lasts until Easter. There are a few glaciers where it is possible to ski in July.

4. Variety
The deepest canyon in Europe (and a few others equally spectacular), mountains, mountain lakes, the biggest lake in the Balkans that is a paradise for bird-watchers, the only Mediterranean fjord, lots of beaches... All of that in an area roughly the size of Wales.

5. Prices still low
Prices in Montenegro are considered to be approximately 30% lower than in Croatia. This is largely due to the overseas investors going there sooner. Prices have been rapidly increasing for the last 5 years and there is a lot there that is reminiscent of the UK market in the late 90's.

6. Euro is the official currency of Montenegro
This is very convenient indeed.

7. Fast growing tourist destination
In 2006 Montenegro had a record tourist season. It also lasted a little longer. As the awareness of what this country has to offer increases the season will extend. The World Travel and Tourism Council predicts that Montenegrin tourism industry will grow at at 17% each year for the next ten years! Not sure whether the builders can keep up. It is probably that for the foreseeable future the demand, particularly for the higher spec accomodation, will outstrip accomodation. Good news for rental market.

8. Low taxation
Property transfer tax in Montenegro is only 2% at the moment whereas in most other popular overseas destinations is about 6%. Montenegrin tax laws are not particularly complex. This is an area where a personal advice is needed.

9. Proximity
Although it is perceived as being in Eastern Europe, geografically, Montenegro is actually fairly central bot in Europe and in the Med. From most major European airports you can get there in 2-3 hours. For example the direct flight from Heathrow to Tivat takes 2hours and 45minutes. That's closer than Malaga, and your transfer time is likely to be considerable shorter, too! Call JAT airways on 020 7629 2007.

Now, we have the added benefit of having a low cost airline, Thomson fly, flying to the neighbouring Dubrovnik Airport in Croatia. This adds about 45 minutes in transfer time but it is considerably less expensive.

10. Well, if it was good enough for 007 …