When it comes to moving or staying abroad for a long time, many foreigners choose the strategy of obtaining a residence permit through the purchase of real estate. Montenegro provides such an opportunity.
In this article, we will analyze the pros and cons of this path so that you can make an informed decision based not on myths, but on real facts.
How it works
The scheme for obtaining a residence permit in Montenegro through real estate is quite simple: buying real estate → submitting documents → obtaining a residence permit.
After registration of ownership, the owner submits an application to the migration authorities. Upon approval, he receives the status of a temporary resident, which allows him to legally live in the country for a year. You can open accounts with local banks and use basic public and private services. In the future, permanent residence, and then obtaining citizenship.
Which facilities are suitable for obtaining a residence permit?
By law, you can choose any property option.:
residential: apartment, apartment, house, villa, country house (vikendica);
commercial: office, restaurant, hotel, warehouse or other office space.
For approval, it is important that the property is legally clean.: without mortgages, courts, or tax debts.
The purchase of a land plot does not give the right to a residence permit.
Advantages of obtaining a residence permit through real estate
1. Residence permit is available to co-owners
Not only the sole owner can apply for a residence permit, but also the co-owner of the property, if he owns at least 50% of the property. This option is convenient for spouses, business partners, or family investments.
2. Relatively fast process
The Ministry of Internal Affairs of Montenegro considers an application for a residence permit for up to 40 calendar days. Taking into account the preparation of the documents and the purchase, the whole process takes 2-3 months.
By comparison, in Portugal, waiting for a residence permit can take a year or longer.
3. Cost
Currently, there are no minimum conditions for the price of an object, a residence permit is issued both when buying a small apartment and when purchasing an expensive villa. But it is worth considering that recently, on November 17, 2025, the “Law on Foreigners” was amended. If they are accepted, new residence permits will be issued only for the purchase of housing worth 200,000 euros or more.
But at the moment there are no clear conditions for the purchase of real estate. You can buy a small house in the north of the country or a large villa on the coast. The cost of the property does not affect obtaining a residence permit.
4. Residence permit can be extended without restrictions
The first residence permit is issued for one year. It can then be extended indefinitely if the property remains owned, the owner has not violated the rules of stay in the country and the remaining conditions are met.
5. Real estate as an investment
The purchased object can be rented out. The average yield is 3.5–6.5% per annum. And in tourist cities and in high season, it can reach up to 10%.
An additional plus for investors is that real estate prices have continued to rise in the Montenegrin market in recent years.
6. Practical convenience
Own real estate eliminates the need to search for housing and renew the lease every year. Depending on the plans, you can choose how to use the property: live by yourself, rent it out, or use it to save investments.
Disadvantages
1. There is no direct connection between the purchase and the residence permit
The very fact of owning real estate does not automatically grant a residence permit. This is exactly the argument for submitting an application. The decision is made after a comprehensive check of the documents. There are also refusals to issue a residence permit if the applicant has provided false information.
2. You can’t sell
If the object on the basis of which the residence permit was issued is sold, the status of your residence will be canceled. The property must remain owned until you need the documents.
3. Expenses
You need to be prepared to
spend on utilities, home maintenance, management company services, and minor repairs.;
taxes on purchase:
up to 150,000 euros — 3% tax;
over 150,000 to 500,000 euros — 4,500 euros fixed + 5% of the amount above 150,000 euros;
over €500 000 — 22 000 euro fixed + 6% of the amount above 500,000 euros.
If you buy a property from a developer directly, you are exempt from the purchase tax.
annual property tax: 0.25–1% of the market/cadastral value. It depends on the city, zone, condition and type of housing;
expenses and taxes from rent: depends on the type of owner – a legal entity or an individual.
These costs are unavoidable, even if you use the accommodation for 2-3 weeks of vacation.
Despite its nuances, for many, a residence permit through real estate is still one of the most reliable ways to legalize it. With a proper approach, risks can be taken into account in advance and minimized even at the stage of choosing an object.
We only work with verified objects. With the help of the Montebook agency, you will find an attractive and most suitable property for your purposes. We accompany the client at all stages of the purchase and sale, and also help to prepare the property for commercial activity.
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