Living in Montenegro as a Foreigner

Living in Montenegro as a Foreigner

Cost of Living, Security, Advantages and Disadvantages

Montenegro attracts attention with the appropriate tax system, especially in terms of trade. In addition, the expected EU membership in the next 3-4 years and the right to free movement in Europe are also noteworthy. One of the most important advantages of its preference is profitable real estate investments that can be made even with low budgets.

For these or other reasons, we have prepared a series of articles that include the answers to the most frequently asked questions for those interested or investigating the country of Montenegro. The information provided here is based on the compilation and summarization of national resources without any comment. If there are any requests for information on matters other than this information, it will be evaluated if it is written as a message.

In your follow-up posts, you will find answers to questions on a wide range of issues, from subsistence costs in Montenegro to how to retire.

Best Places to Live in Montenegro

Construction and house prices are relatively high in coastal areas, as many tourists are also interested in these areas after their visit. However, Podgorica is more favored by those who will live and invest. The reason for this is that the cost of living is lower and it is preferred more for long-term apartment rentals. In addition, the capital, Podgorica, is the first choice of people with a high and stable population and access to everything needed.If you have a plan to buy or build a home, it is best to consider the following information, as well as your personal preferences.

Podgorica 

In terms of living, it has important advantages that make Podgorica one step ahead of other regions. In general, the cost of living is cheaper than in tourist areas. Due to being a capital city, all important institutions are at your fingertips. As a city where one third of the country’s population lives and has a stable population, it has an economy unaffected by seasonal changes.Since the headquarters of consulates and local and foreign companies are located in this city, the so-called White Collar people live in this city.For these reasons, it is the first choice of families with children due to the presence of private schools (providing foreign language education) and hospitals.When it comes to investment and construction, it is a city with high demand. However, the Sales Price of the Residential M2 is at the level of 1,500 Euro / m2. In addition, it is the city with the highest sales and rental rates for both residential and commercial properties.  

Budva 

Budva is a very old town on the Adriatic coast of Montenegro. It is known as the center of Montenegrin tourism because it is an indispensable stop for tourists with its picturesque views of Old Town, nightlife and beaches. The season lasts about 4 months and is secluded with low resident populations out of season. Especially in July and August, tourists make the area very crowded.Those looking for a quiet and peaceful retirement, especially near the sunny beaches, tend to choose Bečići or Sveti Stefan instead of living directly in Budva.When it comes to investment and construction, it is the city with the highest demand (about 70% of total demand). Selling Speed ​​is also so high. House M2 Sales Price is at the level of 2.000 Euro / m2. Depending on a number of conditions, during the season, when the tourist is rented daily, the return on your investment is around 10-12 years. However, when this operation is to be carried out as an agent, this rental income and return on investment will take up to 15 years. 

Tivat

Tivat, considered the most ornate part of Montenegro, is situated on the east coast of the Bay of Kotor. It is a relatively new settlement compared to the nearby ancient cities.Porto Montenegro is a super marina and luxury resort complex on the Tivat beach. The luxury project was started in 2007 by Canadian billionaire Frank Stronach with the chairmanship of LVMH and Lord Rothschild.In addition to the marina, it is also home to Montenegro’s second airport. The Knightsbridge Schools International, Montenegro’s most prestigious international school, is also in Tivat.In other words, Tivat is a region that is preferred by tourists and foreigners who want to live a more luxurious life in Montenegro.

Except for the summer season, it is more secluded than Budva, one of the cities with a low resident population.In terms of investment and construction, there is demand but not high (about 10% of total demand), and therefore the Sales Speed ​​is low. However, the Sales Price of the Housing M2 is at the level of 2,000 Euro / m2. It is the region most preferred by Russian citizens after Budva.

Cost of Living in Montenegro

Montenegro is one of the most suitable countries in Europe in terms of living costs. The approximate monthly costs are as follows.

• If you live in a rental property in Montenegro, the cost of rent varies according to the location of the house. However, under 250 € / month, it is difficult to find housing in preferred areas of the city. Monthly rents for a two-bedroom, well-located and in good condition are around 500-600 € / month.

• The costs of electricity, water, internet vary between 50 € / month and 100 € / month depending on the size of your house.• Although there is a difference between cities, the monthly bus ticket is usually around € 20 / month.

• Nightlife and outdoor dining costs can be reduced to 50 euros per person at popular destinations in Tivat, Kotor and Budva’s tourist areas, and up to 5 euros per person in economic locations.

• Private health insurance costs around EUR 300 per year. Doctor’s appointment is less than 25 euros and basic medication prices are less than 10 euros.

• Supermarket costs in Montenegro are very reasonable. The monthly supermarket expenditure of a four-person household is less than 400 euros.

Can I Retire in Montenegro?

In 2006, leaving Serbia, prior to the declaration of independence, Montenegro was also one of the countries that retired in other European countries preferred to settle.In addition, a number of reasons for choosing to retire in Montenegro are listed below.

• Possibility to invest with low budgets and low taxes throughout the country,

• Property prices and ease of settlement are still achievable compared to Croatia, although real estate prices in general are rising.

• Facilitation in the transfer of pension and pension benefits to other countries through international agreements,

• Very low cost of living compared to countries such as Germany, France, Italy or the United Kingdom.If a retirement plan is being made in Montenegro, buying a house is probably the easiest way to get a temporary residence permit.

 Is it Safe to Live in Montenegro?

Due to the low crime rate, living in Montenegro is very safe. Especially violent crimes are low compared to other developed countries. In the US Department of State assessment, Montenegro is shown in the Level 1 Safe country category. Montenegro is seen as a safe place especially for women. 

 Living in Montenegro: pros and cons

As in every country, living in Montenegro has its pros and cons. Personal experiences differ in this regard. It should be noted that there are serious differences between coastline cities, Podgorica and the rest of Montenegro.However, there are a few points here that give you an idea of ​​what it’s like to live in Montenegro.

Advantage: Citizenship Program and EU Membership provides:

Getting Montenegro citizenship:

• The conditions for obtaining a temporary residence permit are fulfilled.

• Required renewal application is made for five years.

• After the first five years, a five-year Permanent Residence Permit application is made.

• An application for citizenship can be made when this five-year period, ie a total of 10 years, has been completed.Ten years is a long time, but it is clearer and more precise than in many countries.

Advantage: Low Taxes and Cost of Living

While living standards are high, there is no other country where the income tax is 9%.Compared to Croatia, the cost of buying real estate is much lower in Montenegro. Housing prices showed flexibility due to the decline in demand from Russian citizens in 2018, but have steadily risen since the 2008 global financial crisis.

Advantage: Pleasant, Natural Environment

Montenegro is known for its warm and sunny climate. Take Kotor as an example:

• While the average maximum level of August is 24 °, it receives 10 hours of sunlight per day.

• In October, the air temperature is between 10 ° – 20 °. It rains for an average of 11 days per month. The sea temperature is 20 °.

• In January, which is the coldest and rainy, Kotor rarely falls below freezing point and it rains a total of 10cm during the season.Montenegro also stands out with its physical geography. On one side the ocean beaches, on the other the mountains and natural beauties make Montenegro a paradise.

Disadvantage: Language Difficulties:

Montenegrin is a difficult language to learn.For example, two different alphabets are used. Some Montenegrins use Latin and some Cyrillic.English is very common in bars, restaurants and hotels in tourist areas, but after long life, the local language must be learned. This is especially important for communicating with government officials and local tradesmen.And, of course, if you want to get Montenegrin citizenship, it is compulsory to learn enough language to pass a basic proficiency exam.

Disadvantage: Montenegro is a Small Country:

The Montenegrin government is implementing a number of strategies to improve the health system, but it is still behind other European countries.The number of doctors per person is low. Therefore, it may be necessary to go to Croatia or Serbia when comprehensive health care is required.

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