How to Get Residency in Montenegro by Buying Property: 2026 Complete Guide
Are you dreaming of a life on the Adriatic coast? Montenegro has long been a hidden gem for investors, but 2026 marks a pivotal year for the local real estate market. With the recent updates to the Law on Foreigners, navigating the path to residency requires up-to-date knowledge.
In this guide, we’ll break down exactly how you can secure a residence permit through property ownership, the costs involved, and the best areas to invest in 2026.
The 2026 Residency Rule Change: What You Need to Know
For years, Montenegro allowed residency through property ownership regardless of the purchase price. However, as of January 2026, the government has implemented a new threshold:
- Minimum Investment: To qualify for a temporary residence permit (VNZ), the residential property (house, apartment, or villa) must be valued at at least €200,000.
- Property Type: The property must be “clean”—meaning it must be fully legalized and registered in the Real Estate Cadastre (List nepokretnosti) without any legal encumbrances.
Step-by-Step Process to Buying Property in Montenegro
Buying property as a foreigner is straightforward, but legal due diligence is non-negotiable.
1. Selection and Due Diligence
Once you find a property on Nekra.me, your lawyer must verify the title deed. In 2026, with the stricter legalization laws, ensures the building has all necessary permits.
2. The Sales Contract and Notarization
All real estate transactions must be finalized before a licensed Montenegrin Notary. A 10% deposit is standard, followed by the signing of the final Purchase Agreement.
3. Payment and Registration
Payments must be made in Euros via bank transfer. Once paid, the notary submits the contract to the Cadastre for the title deed transfer into your name.
Costs and Taxes in 2026
Budgeting for your investment means looking beyond the sticker price. Here are the current tax rates:
Buying property as a foreigner is straightforward, but legal due diligence is non-negotiable.
1. Selection and Due Diligence
Once you find a property on Nekra.me, your lawyer must verify the title deed. In 2026, with the stricter legalization laws, ensures the building has all necessary permits.
2. The Sales Contract and Notarization
All real estate transactions must be finalized before a licensed Montenegrin Notary. A 10% deposit is standard, followed by the signing of the final Purchase Agreement.
3. Payment and Registration
Payments must be made in Euros via bank transfer. Once paid, the notary submits the contract to the Cadastre for the title deed transfer into your name.
Montenegro Costs and Taxes in 2026
Budgeting for your investment means looking beyond the sticker price. Here are the current tax rates:
- Real Estate Transfer Tax (RETT): Montenegro uses a progressive system for resale properties:
- Up to €150,000: 3%
- €150,001 – €500,000: €4,500 + 5% of the amount over €150k.
- Over €500,000: €22,000 + 6% of the amount over €500k.
- VAT (21%): Only applicable to brand-new properties purchased directly from developers.
- Annual Property Tax: Ranges from 0.25% to 1% of the market value annually.
Applying for Your Residence Permit
After your name is on the title deed, you can apply for residency at the Ministry of Internal Affairs (MUP). You will need:
- Proof of Ownership: A fresh copy of the List nepokretnosti.
- Financial Solvency: Proof of at least €3,650 in a Montenegrin bank account.
- Clean Criminal Record: From your home country (apostilled and translated).
- Health Insurance: Valid in Montenegro.
The permit is valid for one year and is renewable annually as long as you own the property.
Best Investment Locations for 2026
- Budva: The “Tourism Capital.” Highest rental yields for short-term holiday lets.
You can explore the latest [properties for sale in Montenegro] to find the best investment opportunities. - Kotor Bay: UNESCO heritage site. Best for luxury villas and long-term value appreciation.
- Tivat (Porto Montenegro): High-end lifestyle and a magnet for yacht owners.
- Bar: Growing popularity for families due to year-round infrastructure and schools.
Conclusion
Montenegro remains one of the most attractive investment destinations in Europe, offering a path to residency and a high quality of life. While the new €200,000 limit has changed the landscape, it ensures a more stable and premium real estate market for serious investors.
Ready to start your journey? Browse our exclusive listings in Montenegro or contact our team for a free consultation.
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