Investing with Ena Capital Partners gives you access to exclusive properties that can offer maximum return on investment with minimal risk.
MONTENEGRIN INVESTMENT OPPORTUNITIES
Montenegro is a competitive and dynamic destination with the clear strategic objective of developing a sustainable tourism portfolio while protecting its abundant natural resources. Since the adoption of the Euro currency in 2002 and the declaration of independence in 2006, Montenegro has persistently pursued its goals of EU membership and tourism growth. NATO membership since 2016 prompted a surge in foreign investment interests, elevating the real estate sector to unprecedented heights.
Montenegro is a safe haven for investors, offering vast investment opportunities and government incentives. The most appealing sector for foreign investors is luxury real estate, due to low supply and a growing demand for luxury tourist accommodation. With its mild Mediterranean climate, stunning natural landscapes, cultural heritage and access to the Adriatic Sea, Montenegro makes a perfect destination for high-end development projects.
GOVERNMENT INCENTIVES & TAXES ON INVESTMENT
The Montenegrin government has been working hard to attract and retain foreign investors. Private property is protected in Montenegro’s constitution and foreigners (including investors) are placed on an equal legal footing.
Montenegro stands out for its low personal and corporate tax rates – some of the lowest in Europe and within the Balkan region. However, as of 1 January 2021, a new progressive taxation system was introduced.
Montenegrin real estate taxes are among the most competitive in Europe – ranging between 0.25% - 5% of property value per year – making it an attractive destination to invest in luxury real estate. Montenegro has signed double-taxation treaties on income and property with over 40 countries; thus avoiding double taxation on personal and corporate income as well as income from real estate.
Buying a Property in Montenegro
Montenegro is an ideal place to live with a fairly straightforward real estate system. Buying a property in Montenegro comes with many advantages:
Since NATO's membership in 2016, the real estate sector has seen unprecedented growth due to a surge of foreign investments.
There is a low supply and a growing demand for luxury real estate properties.
The rental yield on Montenegrin property is estimated at 6% - 10%, which is one of the highest in the region.
Montenegro’s favorable tax system also applies to real estate. That means that land-transfer, property and capital gains taxes are lower than they are in most parts of the world. Tax on capital gains on real estate sales in Montenegro is 9%.
Buying a habitable property entitles you to a temporary residence permit.
Tax on property rental income is 9%.
Montenegro's taxation system, offering a lower tax burden compared to the rest of Europe, has made it an attractive destination for foreign investments, especially for those interested in luxury real estate.
RETURN ON INVESTMENT ON RENTAL PROPERTY
Buying a property in a developing tourist country like Montenegro is one of the most profitable and sustainable investment opportunities. Foreign investors can buy all types of properties, such as commercial property, office space, house, apartment, or land for construction, under the same conditions as the local investor. Investing in Montenegro is safe and reliable, and all major international insurance companies will insure investment projects in Montenegro.
After buying a house or apartment, investors can rent a property while away from Montenegro, and receive a return on investment. Property owners can rent the property independently, or hand it over to an agency for property and rental management. Certain luxury residential and tourism projects in Montenegro guarantee their buyers a return on investment of 8% per year.
The rental yield on Montenegrin property is estimated at 6% - 10%, which is one of the highest in the region.
Kolasin has become an increasingly popular destination for both foreign and local investors in recent years. The construction of the Montenegrin motorway, connecting Kolasin to Podgorica was a major turning point in the development of the town. This infrastructure project, which is the largest ever to be constructed in Montenegro, will eventually serve as a route between Montenegro and other parts of Europe. In addition to this, a modern ski resort has been built in Kolasin which is already amongst the best of its kind in the region and continues to grow. Construction projects of high-class hotels and resorts are developing, and interest in buying apartments, houses and land is growing.
