Why Montenegro is a great place for a holiday home…

A few people have asked me why did we choose Montenegro as a location to launch Ena Capital Partners ?

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The obvious answer really is because we live there!? We fell in love with the place when we got here, and we realised it had the right mix of natural beauty, central location, sunshine, sea, and mountains.? It is one of the few places where you can lounge on a sandy beach in the morning and within an hour or so, be in the mountains.? Indeed, our first project, Terra Homes , is a stylish and peaceful community of mountain homes, situated in Kolasin, the country’s most vibrant mountain town.? Kolasin has great views, access to 45km of world-class ski trails and throughout the year a wide selection of outdoor activities…...

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Montenegro has been listed as a country with the fastest growth of tourism business and long-term growing tourism economy by the World Travel & Tourism Council (WTTC).? Montenegro's breathtaking natural beauty, including its ancient walled towns, UNESCO-protected national park, Europe's deepest canyon, and stunning fjord, captivate all who visit. Despite its small size, Montenegro is rich in natural diversity, showcasing contrasts between its north and south regions through its five national parks, four UNESCO-protected areas, six nature parks, two marine protected areas……well I could go on!? English poet Lord Byron described the country ‘The most beautiful contact between the earth and sea took place at the Montenegrin littoral’.?

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But aside from its beauty and cultural heritage, it is also a dream destination for investors looking for high-end properties in a forward looking and safe country, with quite a few tax incentives and an attractive return on investment.

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The country acquired NATO's membership in 2016, and officially applied to join the EU on 15 December 2008. ?With all the negotiating chapters opened, the country enjoys a widespread support among EU members' officials, and accession of the country to the EU is considered possible by 2025.?

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It is also a safe country.? In the 2022 Global Peace Index report , the Institute for Economics & Peace ranked Montenegro 48th on the list of 163 countries in the world, rating it as a country with a high state of peace. To put that in context, the US has been ranked 129th on the same list, having a low state of peace.?

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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.

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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. Buying a habitable property entitles you to a temporary residence permit.

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The rental yield on Montenegrin property is estimated at 5.95% which is one of the highest in the region.? (Compare France at 4.39%, Croatia at 4.59% for example.)?

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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.

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So, for holiday home buyers who think with their heads or wallets and their hearts, Montenegro is a good bet.? We certainly think so…..and following our Terra Homes project in the mountains, we will be announcing a new project nearer to the sea…..Watch this space!

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