Is Montenegro Good to Retire? A Comprehensive Guide

19.08.2024

Is Montenegro Good to Retire? A Comprehensive Guide

If you’re thinking about where to spend your golden years, Montenegro might not be the first place that comes to mind—but it should definitely be considered. This small Balkan country offers stunning natural beauty, a laid-back lifestyle, and a surprisingly affordable cost of living. But is Montenegro really good for retirement? Let’s dive into everything you need to know, fr om the cost of living and taxes to the food, activities, and international travel options.

1. Cost of Living: Affordable Comfort

One of the biggest draws of retiring in Montenegro is the cost of living which compared to it’s other European counterparts is extremely affordable, especially with the recent price increases across a number of sectors.

• Housing: Whether you’re looking to rent or buy, housing in Montenegro is reasonably priced. You can find a one-bedroom apartment in a city like Podgorica or along the coast for as little as €300-€500 per month. If you’re buying, which tends to be the preferred option amongst many of the expats here, expect to pay anywhere from €1,200 to €2,500 per square meter, depending on the location. Popular coastal areas such as Kotor or Budva, will always command a higher price.
• Utilities: Monthly utilities, including electricity, heating, cooling, water, and rubbish collection, typically cost around €100-€150 for a modest apartment.
• Groceries: Local markets are usually the best place and will offer a variety of fresh produce from the surrounding farmland at affordable prices, and a typical bill for a couple can range from €200 to €300 per month. There are of course the larger supermarkets, wh ere you’ll find both traditional Montenegrin and International options.
• Healthcare: Montenegro offers both public and private healthcare options. While the public system is affordable, many expats and retirees will prefer private care, which is still reasonably priced. Health insurance can cost around €50-€100 per month depending on your coverage.

2. Taxes and Fees: What You Need to Know

Understanding the tax system is crucial if you’re planning to retire in Montenegro. The country’s tax system is relatively straightforward, but there are a few things to keep in mind.

• Income Tax: If you become a tax resident (living in Montenegro for more than 183 days per year), you’ll be subject to a tax rate of between 9% & 15% on your worldwide income. However, if you’re drawing a pension from another country, you’ll need to check if there’s a double taxation agreement between Montenegro and your home country. For example, Montenegro and the UK have an agreement, along with Belgium, Denmark, France, Germany, Sweden and Turkey.
• Capital Gains Tax / Pension Tax: The capital gains tax rate is 9% and the pension tax rate is set at 0%.
• Property Tax: If you decide to buy a home, property tax in Montenegro depends on whether you end up buying a New Build or a Re-Sale Property. If you buy a Re-Sale property (direct from the owner) it’s 3%, but if you buy a New Build (direct from the developer) it’s 0%.
• VAT: The Value Added Tax (VAT) in Montenegro is 21% on most goods and services, but some essentials, like food and medicine, are taxed at a reduced rate of 7%.

Montenegro’s tax rates are relatively low, making it a tax-friendly destination for retirees, especially compared to many Western countries.

3. Eating Out: Culinary Delights at Great Prices

One of the joys of retirement is having the time to enjoy good food, and in Montenegro, you can do just that without breaking the bank.

• Local Cuisine: Montenegrin food is a delicious blend of Mediterranean and Balkan influences. Fresh seafood, grilled meats, and seasonal vegetables are staples. A meal at a mid-range restaurant will typically cost you between €10 and €20 per person, including drinks.
• International Options: In cities like Podgorica, Kotor, and Budva, you’ll find a growing number of international restaurants offering Italian, Asian, and other cuisines. Prices are still quite reasonable, with a meal for two at an Italian restaurant costing around €25-€40.
• Cafés and Bakeries: Montenegro has a vibrant café culture, with many locals enjoying a leisurely coffee at any time of day. A cappuccino typically costs around €1.50-€2.00, and you can grab a fresh pastry for under €1.

Whether you’re dining out every night or just enjoying the occasional meal, eating out in Montenegro is affordable and offers a variety of delicious options.

4. Activities and Leisure: Plenty to Keep You Busy

Retirement in Montenegro isn’t just about relaxing, and there’s plenty to keep you active and engaged.

• Outdoor Activities: Montenegro is an outdoor enthusiast’s paradise. From hiking in the mountains of Durmitor National Park to sailing along the stunning Adriatic coast, there’s no shortage of activities. The country’s diverse landscape offers opportunities for everything from skiing in the winter to swimming and sunbathing in the summer.
• Cultural Experiences: Montenegro has a rich history and culture, with numerous UNESCO World Heritage sites, ancient monasteries, and charming old towns to explore. Cities like Kotor and Cetinje are steeped in history, offering plenty of museums, galleries, and cultural festivals.
• Social Life: The expat community in Montenegro is growing, particularly in coastal areas. Many retirees find it easy to make friends and join social groups, whether through language classes, hobby clubs, or simply meeting people at local cafés and events.
• Golf: Golf is very much an upcoming sport in Montenegro, and the first course at the prestigious Lustica Bay is currently under construction. Designed by Gary Player it will be the first course in Montenegro, with 9 holes set to be finished by 2026 and the full 18 holes set to be finished by 2028.

Whether you prefer an active lifestyle or a more relaxed pace, Montenegro has something for everyone.

5. International Travel: Easy Access to Europe and Beyond

Montenegro’s location makes it an excellent base for exploring the rest of Europe and beyond.

• Air Travel: The country has two international airports—one in Podgorica and another in Tivat. These airports offer direct flights to major European cities like London, Rome, Vienna, and Istanbul, making it easy to travel for leisure or visit family and friends. There are plenty of flights from the UK to both airports, and only a few short weeks ago Easyjet opened their new route from Bristol to Tivat.
• Road Trips: Montenegro’s location also means you’re just a short drive from neighbouring countries like Croatia, Bosnia and Herzegovina, Serbia, and Albania. Whether you’re taking a weekend trip to Dubrovnik or exploring the beautiful Albanian Riviera, there’s plenty to see and do nearby.
• Public Transport: Within Montenegro, public transportation is reliable and affordable, with buses connecting major towns and cities. However, many retirees prefer to have a car for the convenience of exploring at their own pace.

The ease of travel from Montenegro makes it an ideal retirement destination for those who want to explore Europe without the hassle of long-haul flights.

Conclusion: Is Montenegro Good to Retire? Absolutely!

Montenegro is an excellent choice for retirement, offering a low cost of living, stunning natural beauty, and a relaxed lifestyle. The country’s favorable tax system, affordable healthcare, and wide range of activities make it a compelling option for retirees looking for a new adventure.

Whether you’re drawn to the picturesque coastal towns, the majestic mountains, or the rich cultural heritage, Montenegro has something to offer every retiree. And with its central location in Europe, you’ll have the perfect base for exploring the continent.

So, if you’re asking yourself, “Is Montenegro good to retire?”—the answer is a resounding yes.