Buying real estate in Montenegro?

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Buying a property in Kotor: a complete guide

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property investment Kotor

Yes, the analysis of Kotor's property market is included in our pack

Considering buying a nice property in Kotor? You're not alone!

Many people are drawn to Kotor's Adriatic allure and fantasize about owning a historic property or a modern apartment in this city.

Would it be a smart investment, though? Are property prices increasing in Kotor? How much does it cost? Is it better to invest in the Old Town or Dobrota? Are there any hidden fees? Can I get a very good rental yield? Where?

In this article, everything is sorted out for you.

The Investropa team knows this market like the back of their hand. Actually, we've gathered all our findings in a pack. Get it now.

In this article, we're happy to share useful information with you.

How's the real estate market in Kotor?

Are property prices rising or falling? Let's consult the most recent data and stats.

Property types

In Kotor, you can find various types of properties for sale, ranging from charming historic houses and cozy apartments nestled within the Old Town's cobblestone streets, to modern waterfront villas with stunning views of the Bay of Kotor.

Additionally, there are vacant land plots available for those interested in building their own dream homes, and commercial properties like shops and offices catering to business needs.

Whether you're seeking a slice of local history, a serene coastal retreat, or a business opportunity, Kotor offers a diverse range of properties to suit different preferences and goals.

Buying vs Renting

(If you're buying for yourself and not to rent out)

If Kotor is your city of choice, you may be pondering the buy vs. rent decision in this stunning coastal town in Montenegro, known for its historic architecture.

Usually, buying is better than renting in Kotor due to the potential for long-term appreciation in property values.

On the flip side, renting offers greater flexibility if that's what you prefer.

Housing prices in Kotor

On average, according to the updated data from Statistical Office of Montenegro, purchasing a property in Kotor will cost you around $3,900 per square meter.

Naturally, things are quite spread out. An apartment in the historic old town of Kotor might have a different price per square meter than a coastal villa. You'll get a more detailed in our pack for buying property in Kotor and in Montenegro.

To put things in perspective, it means that, instead of buying an apartment in a big city like Paris, you can afford 3 properties in Kotor.

Also, housing prices in Kotor are 32% cheaper than in Tivat.

The most expensive neighbourhoods in Kotor are probably Stari Grad and Dobrota, while the cheapest neighbourhoods are likely Prčanj and Muo.

Kotor Property Price per Square Meter


First and foremost, we have to acknowledge that Montenegro offers, today, peace and stability to investors. The last Fragile State Index that has been reported for this place is 57.9.

This is important to remember when wondering if it's a good investment to buy a property in Kotor.

Besides that, if we look at the IMF's GDP forecasts, Montenegro's economy is expected to soar by 13.8% in the coming 5 years, resulting in an average GDP growth rate of 2.8%.

If you want to invest in real estate in Kotor it's a good thing because, usually, when the economy grows, people make more money, and this encourages them to invest in real estate, which drives up the demand and prices for properties.

Also, in Montenegro, the average GDP per capita has changed by 6.7% over the last 5 years. It's a satisfactory number.

This data is a positive signal - housing prices in Kotor might soar in 2024 and after that.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Montenegro right now.

Buying property in Kotor

Buying real estate in Kotor can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Kotor and in Montenegro.

Buying process

Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.

Here, we're presenting you with a more straightforward version.

This is the step-by-step process to purchase a property in Kotor:

  1. Research properties in Kotor and consider market trends.
  2. Engage a local real estate agent familiar with Kotor's property market.
  3. Visit properties and shortlist based on your preferences.
  4. Perform due diligence, including land registry searches and ownership verification.
  5. Hire a Montenegrin lawyer to review contracts, handle legal matters, and ensure compliance with local regulations.
  6. Negotiate the price and terms with the seller, considering the unique factors of the Montenegrin property market.
  7. Sign a Preliminary Sales Agreement, which outlines the terms and conditions of the sale.
  8. Pay a deposit, typically around 10% of the property price, upon signing the agreement.
  9. Obtain a tax identification number (TIN) from the local tax authorities in Montenegro.
  10. Apply for approval from the Ministry of Sustainable Development and Tourism, required for non-resident buyers.
  11. Transfer the full purchase price to the seller's account upon approval and completion of all legal procedures.
  12. Sign the Notary Deed in the presence of a Montenegrin Notary Public, and register the property at the local Land Registry to complete the purchase.
  13. Pay applicable taxes, such as property transfer tax and notary fees, as required by Montenegrin law.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Montenegro.

Make a profitable investment in Kotor

Better information leads to better decisions. Save time and money. Download our guide.

buying property in Kotor

Where to find a property

Explore these websites to find properties in Kotor:

  • - Search for properties for sale in Montenegro and customize your preferences.
  • A Place in the Sun - Browse properties for sale in Montenegro.
  • - One of Montenegro's largest classifieds websites with numerous real estate listings.
  • - A commonly used website in Montenegro for real estate listings.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Montenegro.

What you can get

As mentioned before, the average price per sqm in Kotor is $3,900. A 1-bedroom property of 60 square meters would cost approximately $234,000, and a 2-bedroom of 85 square meters would be around $332,000.

Of course, the price of properties can be influenced by their qualities and the area they're in.

Top neighborhoods in Kotor will come with higher price tags. An apartment in Dobrota might cost you about $450,000, whereas an apartment in Stoliv would be priced similarly at $410,000.

Still, some spots are easier on your budget. You might discover an apartment in a distant area for $80,000 or a residence in Risan for only $250,000.

We give more details about property types and areas in our full pack for buying property in Montenegro.

Risks and pitfalls

Here are the main pitfalls specific to buying a property in Kotor, Montenegro:

  • Limited land availability: Kotor's picturesque location leads to a scarcity of prime properties.
  • Zoning restrictions: Strict regulations may limit property development and alter future plans.
  • Infrastructure challenges: Some areas might lack modern amenities and reliable utilities.
  • Historical property concerns: Older buildings may have preservation limitations and restoration costs.
  • Coastal erosion risks: Properties near the coast could face erosion and related damages.
  • Non-EU buyer restrictions: Non-EU citizens might encounter limitations on property acquisitions.
  • Tourist season impact: Seasonal demand may affect rental income or resale opportunities.
  • Language barriers: Dealing with local transactions and paperwork can be challenging without fluency in Montenegrin or Serbian.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

real estate Montenegro

Everything you need to know is included in our Montenegro Property Pack

Living in Kotor

Living in Kotor is a great experience, with its stunning natural beauty, rich culture, and friendly locals, it's a perfect place to call home.

Cost of living

The cost of living in Kotor is relatively low compared to other cities in Europe. The cost of basic necessities such as groceries, transportation, and housing is much lower than in many other cities.

Here are some examples to better understand the cost of living in Kotor, Montenegro:

  • Rent for a one-bedroom apartment in the city center: $500/month.
  • Monthly public transportation pass: $25.
  • Dinner for two at a local restaurant: $40.
  • 1 liter of gasoline: $1.20.
  • Utilities (electricity, water, cooling) for an 85m² apartment: $100/month.
  • Gym membership at a local fitness center: $30/month.
  • Ticket to a movie at a cinema: $6.
  • Cup of locally brewed coffee at a café: $2.

Neighbourhoods and spots

Since our goal is to present information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Kotor. For yields, prices and rents, check our property pack.

Neighborhood Description Strengths Weaknesses

Stari Grad

Stari Grad, also known as the Old Town, is the historical and cultural heart of Kotor, featuring charming cobblestone streets, medieval buildings, and ancient landmarks.

Cultural heritage, historical significance, scenic views, and bustling atmosphere.

Can be crowded with tourists, limited parking, higher property prices.


Dobrota is a tranquil and picturesque neighborhood located along the bay, offering beautiful sea views, coastal promenades, and a more relaxed living environment.

Stunning sea views, coastal walks, peaceful ambiance, and proximity to the bay.

Farther from the Old Town, limited public transport, fewer dining and shopping options.


Muo is a charming village on the bay, just outside the Old Town, featuring traditional stone houses, fishing boats, and a serene atmosphere.

Picturesque bay views, peaceful surroundings, proximity to the Old Town.

Less developed infrastructure, limited amenities.


Perast is a quaint and historic town located nearby, known for its well-preserved Baroque architecture, iconic islands, and a slower-paced lifestyle.

Scenic beauty, historical landmarks, tranquil atmosphere.

Smaller selection of amenities, limited nightlife options.


Risan is a small coastal town with a rich history, featuring ancient Roman mosaics and natural attractions like the Risan Bay and nearby mountains.

Historical significance, natural beauty, quieter setting.

Smaller town with limited entertainment options, less developed infrastructure.


Kamenari is a coastal village with a ferry port, connecting Kotor to the opposite side of the Bay of Kotor, offering easy access to Herceg Novi and beyond.

Ferry access, scenic bay views, peaceful surroundings.

Smaller village with fewer amenities, some traffic near the ferry terminal.

Life in Kotor

Kotor has a diverse economy, with tourism, fishing, shipbuilding, and agriculture all playing a role. It also benefits from its location on the Adriatic Sea, with a strong port and access to international trade.

What expats usually like the most in Kotor is the stunning beauty of the old town, with its winding cobbled streets and picturesque buildings, as well as the stunning coastal views of the Bay of Kotor.

Access to healthcare in Kotor is generally good, with a number of public and private medical facilities available.

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invest real estate in Kotor

Renting out in Kotor

For those aiming to buy property solely for renting out and earning income.


Tenant Profiles in Kotor

If you decide to buy and rent out to long-term tenants, you should target professionals, students, and retirees who want to live in the heart of the city. Tourists and business travelers may also be interested in short-term rentals.

Here is a little summary table we've made for you.

Property type and area Profiles of potential tenants What they are looking for Expected monthly rent in $

Apartment in Old Town

Tourists, expats

Historic charm, proximity to attractions

$800 - $1500

Villa in Dobrota

Families, retirees

Quiet neighborhood, sea views

$1200 - $2500

Studio in Muo

Singles, couples

Near the waterfront, relaxed lifestyle

$600 - $1000

Condo in Prcanj

Retirees, nature lovers

Tranquil setting, outdoor activities

$1000 - $1800

Apartment in Stoliv

Beachgoers, water enthusiasts

Beach access, coastal living

$800 - $1300

House in Perast

History buffs, artists

Quaint village, cultural heritage

$1500 - $3000

Apartment in Prčanj

Retirees, nature lovers

Peaceful area, coastal lifestyle

$900 - $1600

Rental yields

Nowadays, rental yields in Kotor are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.

Rental yields in Kotor are typically highest for affordable apartments located in the city centre, as these are the most sought-after properties due to their proximity to the city's amenities and attractions. Additionally, properties with sea views tend to have higher rental yields due to the desirability of the views.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Kotor are taxed at 15%, which is not much.


You could also decide to rent short-term to tourists looking to explore the area's historical sites and beauty, or to business travellers looking for a convenient base to explore the Bay of Kotor.

If you decide to go with that option, look for properties in the old town and the waterfront area of Kotor, as they are popular tourist attractions and offer plenty of rental opportunities. Additionally, the neighborhoods of Gornji and Donji Stoliv are also worth considering.

Currently, there are approximately 3,195 active Airbnb listings in Kotor, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $72.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Kotor can make around $800 per month. Also, the average occupancy rate is estimated at 50%.

Is it worth buying real estate in Kotor then?

Whether or not you should buy property in Kotor boils down to your specific situation and objectives. If you're seeking a picturesque, tranquil, and potentially lucrative destination for retirement, a vacation home, or a long-term investment, Kotor's stunning Adriatic setting and historical charm could make it an appealing choice.

It's especially attractive if you plan to enjoy the property yourself or generate rental income during tourist seasons. However, tread cautiously if you're hoping for quick profits through speculation or if your finances are stretched thin, as real estate markets can be unpredictable, and property ownership entails ongoing costs.

Additionally, if you're unfamiliar with Montenegrin laws and customs, seek local expertise to avoid complications.

Conversely, if you're in search of a short-term speculative venture, Kotor's real estate market might not provide the rapid returns you desire. Also, if you're unsure about your future plans or need to maintain flexibility, owning property can be cumbersome due to the time and costs associated with selling.

Ultimately, the decision to invest in Kotor should align with your goals and risk tolerance, backed by thorough research and consultation with local experts.

Make sure you understand the real estate market in Kotor

Don't rush into buying the wrong property in Montenegro. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

real estate market Kotor

The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.