Montenegro vs. Spain - Which is the Better Place to Buy a Holiday Home?
05.02.2025
Montenegro vs. Spain: Which is the Better Place to Buy a Holiday Home? When considering buying a holiday home in Europe, many people immediately think of Spain due to its well-established property market, warm climate, and vibrant culture. However, an increasing number of savvy buyers are turning their attention to Montenegro, which sits on the Adriatic and offers incredible value, breathtaking landscapes, and a booming property market. But which is the better choice for your holiday home? Let's explore key factors like affordability, investment potential, lifestyle, and regulations to see why Montenegro could be your ideal destination.1. Property Prices & Affordability
One of the biggest advantages of Montenegro over Spain is affordability. Property prices in popular Spanish regions like Marbella, Mallorca, and Ibiza are significantly higher than those in Budva, Kotor, or Tivat. In Spain, coastal properties in prime areas often exceed €500,000, whereas in Montenegro, you can find luxury apartments with sea views from €150,000 and stunning villas for much less than their Spanish counterparts.
| Location | Average Apartment Price (€ per m²) | Average Villa Price (€) |
|---|---|---|
| Budva, Montenegro | €2,500 - €4,000 | €250,000+ |
| Kotor, Montenegro | €2,200 - €3,500 | €300,000+ |
| Marbella, Spain | €4,500 - €8,000 | €1M+ |
| Ibiza, Spain | €7,000 - €12,000 | €2M+ |
For those looking for a high-end lifestyle without the high-end price tag, Montenegro is the clear winner.
2. Investment Potential & ROIMontenegro’s property market is growing rapidly due to increasing tourism, infrastructure development, and foreign investment. The government offers tax incentives and residency options for property buyers, making it an attractive market for investors.
Meanwhile, Spain’s property market is mature, meaning higher prices and less room for rapid appreciation. Rental yields in Spain are around 4-5%, while in Montenegro, short-term rentals, especially in touristic hotspots like Kotor Bay and Tivat, can yield 6-8% per year, boosted by a booming luxury tourism industry.
3. Ease of Purchase & Foreign Ownership RulesBoth countries allow foreign buyers to purchase property, but Montenegro offers a more straightforward process:
- Montenegro: No restrictions on foreign buyers, low property taxes (3%), and straightforward legal procedures.
- Spain: Requires NIE (Número de Identificación de Extranjero), has high property taxes (up to 10%), and more complex bureaucracy.
In Montenegro, there are also lower ongoing costs, making it easier and more affordable to maintain a holiday home.
4. Lifestyle & ClimateSpain has a diverse climate, with hot summers and mild winters, but some regions can be overcrowded and suffer from mass tourism.
Montenegro enjoys a Mediterranean climate with 240+ sunny days per year, stunning beaches, and a less commercialized atmosphere.
Spain’s coastal cities can be overrun by tourists, making some areas lose their charm. In contrast, Montenegro’s coastline is pristine, and while tourism is growing, it still retains an exclusive and unspoiled feel.
Montenegro’s coastline features dramatic fjords, hidden coves, and some of the clearest waters in Europe. Spain has beautiful beaches too, but many have become heavily developed.
Montenegro’s Porto Montenegro in Tivat and the Lustica Bay Marina are fast becoming world-class luxury destinations, attracting yacht owners and elite travelers. This level of exclusivity is comparable to Marbella or Ibiza but at a fraction of the cost.
5. Cost of Living & TaxesMontenegro: Lower taxes, cheaper property maintenance, and affordable high-end living.
Spain: Higher income taxes, property taxes, and living expenses compared to Montenegro.
| Factor | Montenegro | Spain |
| Property Purchase Tax | 3% | 8-10% |
| Rental Income Tax | 9% | 19-24% |
| Capital Gains Tax | 9% | 19-23% |
| Annual Property Tax | 0.1 - 1% | 0.3 - 1.3% |
Montenegro’s low taxes make it a cost-effective choice for property buyers looking for a smart investment.
While Spain has an established reputation, Montenegro offers better value, stronger investment potential, and a more exclusive lifestyle. It provides the same Mediterranean charm, with lower property prices, fewer bureaucratic hurdles, and more room for appreciation.
More affordable luxury properties
Higher rental yields and strong investment growth
A quieter, more exclusive Mediterranean experience
Lower taxes and cost of living
An easier path to residency with fewer restrictions
If you’re considering buying a holiday home in Montenegro, now is the time to invest before prices rise further!
Contact us today to explore the best properties in Budva, Kotor, Tivat, and beyond.
Reviews
In period May-August 2022 we sold our flats in St-Petersburg Russia and have bought two ones here in Montenegro, Becici. We decided to move here and make new home and business with my husband. Our agent Milica Zugic is really became our angel - provider here in Montenegro. She is very reliable, responsible , professional employee of CMM Budva department. She has developed intuition and found very fast necessary properties which we needed. Also she helped us to speed up the process of registration documents in MUP.( list nepokretnosti, etc). She was our real provider here. Very appreciated her and all staff of Budva department for there assistance. Separately to lawyer Ivan and his legal team. Very recommended choose Milica Zugic as real estate manager when you search for assistant in this complicated and important field as buying property in Montenegro.
Liudmila Nosova St-Petersburg Russia , 13.09.2022 09:20:09
At the beginning of April 2022, our family living in Prague bought a house in Sutomore with the assistance of your company.
Let me express my gratitude to the management of your company for the service provided, and especially to your employees - Anastasia Zeyak, Alexei Grachev and Elena Bozhovich for their attention, patience and even care for the whole time of buying real estate and the services provided after the purchase.
I would really like all companies to work with the same quality of service. After coming into contact with this kind of attitude towards the client, all our environment, if necessary, will refer to your company only.
With gratitude on behalf of our family.A.V. Ter-Gazaryan, 12.07.2022 10:32:19
Based on my experience with CMM in Budva, Montenegro, I can say that they are reliable, fast, and they deliver what they promise. They take really good care of their clients. For instance, I was offered a lift from the airport, and they would take me back and forth from Tivat to Budva and Becici to see various properties. They would answer all of my questions and respond promptly. They have an excellent team: Katarina, Alexander, Natasha, Martin and some other guys whose names I don’t remember. Katarina, my wonderful agent, went to every length to help me find a perfect home. Unfortunately, my situation changed and I had to postpone my relocation to Montenegro.
I would strongly recommend this company to anyone who is looking for a property in Montenegro.Val , 13.05.2022 02:18:13
We were introduced to CMM by friends who had already done research on Montenegro and CMM. We purchased our apartment in Dobrota, just outside Kotor, all remotely from South Africa, during the lockdown. Everything was seamless without any problems at all. All the CMM departments work together well from the sales team, head office, legal, interior design and rental department. Every detail was well communicated with an abundance of zoom meetings, videos, emails etc
We are thrilled with the outcome and enjoyed working with the CMM team. They were incredibly professional.
After sales service is also excellent as we move into the rental phase of the apartment and over all management of the apartment including maintenance.
We have been directly and indirectly involved with many houses/apartments all over the world and this was the up there with the best service we have received.
Thanks to everyone we dealt with at CMM it has been an absolute pleasure dealing with you all. We look forward too many happy years working with you on our rental.Mandy and Antoine, 06.10.2021 08:56:22
Biz Montenegroda CMM komandayla tanish olmushug. Snejana ve Milan bize cox yaxshi destek olublar. Artig bizim burada evimiz de var. Bize gosterdiler cox yuksek service, ve artig butun bizim senedler de gaydasindadir. Boyuk hormetle onlara Cox sagol bildiririk!
Dilara, 01.10.2019 06:17:27
Last year we decided to find a new home close to the sea. It was quite difficult in the beginning to make the right choice. Once we found CMM Company was a great luck! We immediately received detailed consultation on the country and purchase opportunities. Being attracted by Kotor - one of the most amazing parts of the coast, we decided to take a family trip and maybe make our dream of new home come true. As just discoverers of Montenegro, we were accepted like at home which was a one more pleasant surprise. The most important, we received all detailed information about country regions and procedure of buying property during the first few days. And how beautiful the car journeys were! Difficult choice, but when you find the home you want you can't refuse it. CMM did best to help us with this finding! All the purchase procedure passed well with CMM professional work! Now we are happy owners of a wonderful house with a Kotor bay view, being perfectly served by CMM Management company (of course, we've chosen CMM as professional house manager). Hope our friends and relatives would also move to Montenegro with the CMM help soon !!!
Kate, 22.03.2019 11:06:21