Invest in Montenegro

Investments in Montenegro: Growing Opportunities and Strategic Decisions

Montenegro is becoming one of the most attractive countries for investment in the Balkans. Thanks to sustainable growth in the tourism sector, government initiatives to attract capital, and high demand for real estate, the country offers numerous opportunities to invest in Montenegro. In this article, we will examine key investment areas in Montenegro that can bring significant returns in both short and long-term perspectives.

Invest in Buying an Existing Business: From Cafes to Hotels

One of the most effective and quickest ways to start earning from investments is purchasing an already existing business. Montenegro offers a wide selection of ready-made properties to invest in, ranging from small cafes and restaurants to hotels and even gas stations.

The advantage of buying a business is that it's already functioning, has an established customer base, and a proven business model. This reduces risks associated with launching a new project from scratch. For example, buying a small hotel or restaurant in tourist areas can quickly start generating profit due to steady tourist flow.

We help you invest in and select businesses according to your requirements and investment goals. For example, it can be a hotel, caffe or bar, restaurant, shop, travel agency, transport company, any other specific service or IT business or something else. Conducting detailed market analysis, evaluating growth potential and revenue are important steps in the purchase process, and our team of experts is ready to support you at all stages of the deal.

Table 1: Comparison of Investments in Ready-Made Businesses in Montenegro

Business Type	Average Cost	Payback Period	Seasonal Profit	Annual ROI
Mini-hotel (up to 15 rooms)	€300,000-500,000	5-7 years	15-25%	8-12%
Restaurant/cafe	€100,000-250,000	3-5 years	20-30%	10-15%
Gas station	€400,000-800,000	4-6 years	5-10%	12-15%
Store	€50,000-150,000	2-4 years	15-20%	10-12%

Contact us for available businesses for sale in Montenegro.

2. Invest in Buying Apartments for Airbnb or Booking Rentals

Due to the rapidly developing tourism sector, buying apartments for rental through Airbnb or Booking platforms is becoming one of the most popular investment strategies in Montenegro. The summer season, which attracts millions of tourists from around the world, is particularly favorable for short-term rentals.

Businessmen who invest in Montenegro in property in popular tourist regions such as Budva, Kotor or Tivat, can expect high occupancy during the tourist season and stable income. Average rental prices allow covering property maintenance costs and starting to generate net profit in the short term. Moreover, property values in these regions continue to rise, adding additional benefit upon subsequent sale of the apartment.

Table 2: Rental Yields by Region

City	Cost per m²	Average Nightly Rate (Season)	Occupancy (Season)	Annual Yield
Budva	€2,500-3,500	€80-150	85-95%	8-12%
Kotor	€2,200-3,000	€70-130	80-90%	7-10%
Tivat	€2,300-3,200	€75-140	75-85%	6-9%
Bar	€1,800-2,500	€60-100	70-80%	5-8%

Contact us for selected apartments for Airbnb or Booking rentals.

3. Land Purchase for Long-term Investment in Montenegro: Future Price Growth

Businessmen focused on long-term work can invest in land in Montenegro as a way to obtain significant profit in the future. Land prices in Montenegro, especially in regions with development prospects, are constantly rising. Many investors see this as an opportunity to invest in Montenegro at low prices today and receive significant profits in several years.

Investing in land in Montenegro, whether coastal plots or mountain areas, can become an excellent foundation for future projects. The land can be used for construction of tourist facilities, hotels, residential complexes, or other commercial projects. Plots near major tourist centers are especially promising, where demand for land will only increase.

Table 3: Land Plot Costs and Growth Potential

Location	Price per m²	Expected Growth (5 years)	Target Use
First line	€300-500	40-60%	Hotels, apartments
Second line	€150-300	30-50%	Residential complexes
Mountain areas	€50-150	20-40%	Villas, eco-resorts
Industrial zones	€30-100	15-30%	Manufacturing, warehouses

Contact us for selected land for long-term investment in Montenegro.

4. Invest in Property for Future Price Appreciation

Montenegro remains one of the most affordable European countries for investing in property, while housing prices are steadily rising. This makes residential and commercial real estate purchases profitable investments for those planning to benefit from future asset value growth.

Budva, Kotor, Herceg Novi, Tivat, and Bar are key cities experiencing stable property price growth. These cities attract not only tourists but also new residents, creating high demand for rental and property purchase. Investors can consider both buying properties for personal use and for rental, with subsequent sale at a higher price after several years.

Table 4: Property Price Dynamics by Type

Property Type	Current Price per m²	Growth Last 3 Years	Growth Forecast (2 years)
Premium apartments	€2,500-3,500	15-20%	10-15%
Economy apartments	€1,500-2,000	10-15%	8-12%
Villas	€2,000-3,000	20-25%	12-18%
Commercial	€1,800-2,500	12-18%	8-15%

Contact us for selected property for future price appreciation.

5. Invest in Property Reconstruction: House, Hotel, or Mini-hotel

One of the promising investment directions in Montenegro is buying properties requiring reconstruction. This could be a house, hotel, or mini-hotel which, after renovation and updating, can be sold at a significantly higher price or used for personal operation. Read more about construction in Montenegro.

The real estate market, including old houses and buildings, presents unique opportunities for those ready to invest in reconstruction and modernization. Investments in reconstructing such properties can not only increase their value but also make them attractive to tenants or tourists. Well-executed hotel or mini-hotel reconstruction can significantly increase property operation income.

Table 5: Reconstruction Costs and Profits

Property Type	Purchase Cost	Reconstruction Cost	Potential Value After	ROI
Mini-hotel	€200,000-400,000	€100,000-200,000	€400,000-800,000	30-50%
Villa	€150,000-300,000	€50,000-150,000	€300,000-600,000	25-40%
Apartments	€80,000-150,000	€30,000-70,000	€150,000-250,000	20-30%

Contact us for selected property for reconstruction.

6. invest in Land Purchase for Construction and Operation

For investors interested in construction from scratch, Montenegro offers numerous opportunities. Buying land for subsequent construction of residential complexes, commercial buildings, or tourist facilities can become a strategic decision.

After construction completion, properties can be used for sale or as a long-term investment. Tourism remains one of Montenegro’s key economic drivers, and those investing in hotel or apartment construction for rental can expect high demand from vacationers. Construction land is available in most regions of the country, including both coastal and mountain zones, providing opportunities to invest in Montenegro strategically.

Table 6: Construction Costs and Returns

Construction Type	Construction Cost per m²	Expected Sales Return	Payback Period
Hotel	€1,000-2,500	15-30%	7-10 years
Apartments	€900-2,000	12-25%	5-8 years
Residential complex	€800-1,800	10-20%	6-9 years

Contact us for selected land plots for construction.

7. Invest in Industrial Facility Construction

Besides tourist and residential real estate, there is growing demand for industrial facility construction. This area is particularly interesting for businessmen looking to invest in larger and long-term projects in Montenegro. Construction of factories, warehouse complexes, or production facilities can become a profitable investment, considering low construction and operation costs compared to other European countries.

Industrial projects in Montenegro can also be attractive for international companies seeking new markets for production expansion. Montenegro’s government initiatives to attract investments in the industrial sector additionally create favorable conditions for such projects.

Table 7: Industrial Facility Construction Costs and Profits

Facility Type	Construction Cost per m²	Potential Profit	Payback Period
Factory	€600-1,200	12-20%	8-12 years
Warehouses	€500-1,000	10-18%	6-10 years
Logistics complexes	€700-1,400	15-25%	7-9 years

Contact us for selected land plots for industrial projects.

8. Investment Funds in Montenegro

If you are looking for finance to invest in your projects, below is a list of the largest investment funds that provide grants for some projects, as well as consulting assistance.

• Investment and Development Fund of Montenegro (IDF MN) - governmental company. The Fund core businesses is established through granting loans and extending guarantees, performing activities pertaining to the sale of capital in Fund’s portfolio and other activities aimed at supporting economic development.
• Montenegrin Investment Agency - a Montenegrin Government agency. Investment consultancy services, finding business opportunities in Montenegro.
• Western Balkans Investment Framework (WBIF) - European governmental finance fund. The Western Balkans Investment Framework (WBIF) is a joint initiative of the EU, financial institutions, bilateral donors and beneficiaries, aimed at enhancing harmonisation and cooperation in investments for the socio-economic development of the region and contributing to the European perspective of the Western Balkans.

Company Registration and Accounting

We understand that for successful investment project implementation in Montenegro, it's important not only to choose the right investment object but also to properly organize all legal and accounting processes. That's why our team provides full support in company registration and accounting.

Assistance in company registration includes consultations on choosing the legal form, preparing all necessary documents, and business license registration. We also offer accounting services so you can focus on developing your business without being distracted by administrative tasks.

Table 8: Company Registration Stages and Timeframes

Stage	Description	Completion Time
Consultations and form selection	Determining company structure and type	3-5 days
Document preparation	Preparation of statutory documents	5-7 days
Registration and licenses	Registration with authorities and obtaining licenses	7-10 days

Conclusion

Investments in Montenegro offer unique opportunities for various directions — from business purchase and property rental to construction and industrial development. Montenegro remains one of the most promising markets for investment in Europe, and thanks to our support at all stages, you can be confident that your investments will work for you.

Contact us today to start your profitable business or investment in Montenegro.

Frequently Asked Questions about Investing in Montenegro

Why invest in Montenegro? What makes Montenegro attractive for investors?

Montenegro offers several key advantages for investors:

• Strategic location in Southeastern Europe with ports accessing to the Adriatic Sea
• EU candidate country status with ongoing accession negotiations
• Favorable tax regime
• No restrictions on foreign ownership of companies
• Stable economy with the Euro as official currency
• Growing tourism/consumer sector with significant development potential

Does Montenegro offer citizenship through investment?

No, Montenegro's Citizenship by Investment Program run until the end of 2023.

How to get Montenegro citizenship by investment

You can get Montenegro citizenship after 10 years of living and doing business in the country. Also you can get citizenship of Montenegro after buying a property, flat or house, and living 10 years in the country.

What tax incentives are available?

• 9% corporate tax rate (one of Europe's lowest)
• VAT rates: standard 21%, reduced 7% for essential goods and tourism services
• Tax exemptions in underdeveloped municipalities
• Investment incentives for large-scale projects
• Double taxation agreements with numerous countries

Why is Сhina investing in Montenegro?

China's investment in Montenegro primarily revolves around its Belt and Road Initiative (BRI), with the country serving as a strategic gateway to Southern Europe through its deep-water Port of Bar and crucial infrastructure projects. The flagship investment is the $1 billion Bar-Boljare highway project, which connects the Adriatic coast to Serbia and represents China's largest infrastructure investment in Montenegro. This investment strategy serves multiple purposes: it provides China with direct access to European markets, establishes a significant presence in the Balkans region, and creates economic leverage through infrastructure development.

Is investing in Montenegro a good idea?

The country offers significant advantages, including one of Europe's lowest corporate tax rates at 9%, a strategic location on the Adriatic Sea, EU candidate status, and rapidly growing tourism sector with substantial development potential in both coastal and mountain regions. The government actively encourages foreign investment through various incentives, and the use of the Euro provides monetary stability. However, potential investors should be mindful of challenges such as a relatively small market size (population of around 620,000), some bureaucratic inefficiencies, seasonal tourism dependency, and ongoing infrastructure development needs. The country's real estate market, particularly in tourist areas, shows promise for appreciation, while sectors such as renewable energy, technology, and hospitality continue to expand.

Which countries invest in Montenegro?

The main countries investing in Montenegro represent a diverse international portfolio of investors. Russia has traditionally been one of the largest investors, particularly in real estate and tourism sectors, although investment volumes have decreased since 2022. China has become a significant investor through the Belt and Road Initiative, especially in infrastructure projects including the Bar-Boljare highway. EU countries, particularly Italy, Germany, and Austria, are actively investing in the tourism sector, real estate, and renewable energy. The UAE is showing growing interest in premium tourism projects and real estate, especially along the coast. Turkey is investing in construction, tourism, and manufacturing. The United States is also present in the market, mainly through private investments in the tourism sector and technology. Significant investments come from neighboring Balkan countries, especially Serbia and Croatia, in various sectors of the economy. This diverse mix of international investors contributes to Montenegro's economic development and its integration into global markets.

Where to invest in Montenegro?

Montenegro offers diverse investment opportunities across several key regions and sectors, with the most promising areas being the coastal region (including Budva, Tivat, Porto Montenegro, and Bar) for luxury tourism development, real estate, and hospitality projects; the capital city Podgorica for commercial real estate and business development; and the northern mountain regions (like Kolašin and Žabljak) for winter tourism and eco-resort investments. Tourism-related investments, including hotels, restaurants, and entertainment facilities, show strong returns, especially in coastal areas and emerging mountain resorts. Additionally, the country offers opportunities in renewable energy projects, particularly in wind and solar power, agricultural developments in the fertile Zeta plain, and technology sector investments in Podgorica's growing IT hub, while the Port of Bar presents opportunities in logistics and maritime infrastructure development, supported by ongoing government initiatives and tax incentives.

Is Montenegro a good place to buy property?

Montenegro has emerged as an attractive destination for property investment, offering relatively affordable prices compared to other Mediterranean countries, with strong potential for appreciation, especially in coastal areas like Budva, Tivat, and Porto Montenegro. The country's growing tourism industry, EU candidacy status, and ongoing infrastructure developments contribute to increasing property values, while foreigners enjoy the same property rights as locals (except for agricultural land). With a combination of stunning coastline, mountain resorts, and a favorable tax system, the real estate market is particularly appealing for both holiday homes and rental investments, though investors should be mindful of seasonal tourism fluctuations and carefully verify property titles and permits before purchasing.

Can a foreigner buy property in Montenegro?

Yes, foreigners can buy real estate in Montenegro with nearly the same rights as citizens, with the process being relatively straightforward and secure. Foreign buyers can purchase apartments, houses, and commercial properties without restrictions, though agricultural land ownership is limited to companies registered in Montenegro.