Authored by the expert who managed and guided the team behind the Montenegro Property Pack
Everything you need to know before buying real estate is included in our Montenegro Property Pack
Montenegro has become a magnet for foreign property investors who want to earn rental income on the Adriatic coast or in the capital Podgorica.
This guide covers everything you need to know about renting out residential property in Montenegro as a foreigner, from legal requirements to realistic yield expectations.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in Montenegro.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Montenegro.
Insights
- Coastal Montenegro short-term rentals in Budva, Kotor, and Tivat achieve occupancy rates around 54% to 56%, while Podgorica sits at just 41%, making the coast significantly more lucrative for Airbnb-style hosting.
- The average nightly rate in Tivat reaches about $142, nearly 2.5 times higher than Podgorica's $57, reflecting the premium tourists pay for marina and beach proximity in Montenegro.
- Gross rental yields in Montenegro range from 4.5% to 6.5%, with Podgorica often delivering higher yields due to lower purchase prices relative to rent levels compared to coastal trophy properties.
- Montenegro's property tax is set by municipalities within a legal range of 0.25% to 1.00% of assessed market value, making your tax bill highly dependent on where you buy.
- AirDNA tracks over 6,000 active short-term rentals in Budva alone, signaling serious competition where only listings with parking, AC, and professional management stand out.
- Foreign owners do not need residency to rent out property in Montenegro, but they do need to be identifiable to the Tax Administration, typically through a local accountant or tax representative.
- Furnished apartments rent significantly faster in Montenegro because expats, seasonal workers, and tourists expect move-in-ready units, especially on the coast.
- Long-term landlords in Podgorica should budget for about 0.5 to 1 month of vacancy per year, while coastal annual leases may see 1 to 2 months vacant due to seasonal demand shifts.
Can I legally rent out a property in Montenegro as a foreigner right now?
Can a foreigner own-and-rent a residential property in Montenegro in 2026?
As of early 2026, foreign individuals can generally buy residential property and rent it out in Montenegro without major legal barriers.
Most foreign investors hold property directly in their personal name, though some use local companies for larger portfolios or specific tax planning reasons.
The main challenge is not ownership itself but rather ensuring you stay compliant with Montenegro's tax obligations and, if you rent short-term, with the tourism registration requirements under the Law on Tourism and Hospitality.
If you're not a local, you might want to read our guide to foreign property ownership in Montenegro.
Do I need residency to rent out in Montenegro right now?
No, you typically do not need a Montenegro residence permit to own property and collect rental income, since the foreigners law governs entry and residency rather than property or tax matters.
However, you should assume you will need a local tax identification number because Montenegro taxes income earned within its borders, and registering with the Tax Administration is standard practice for landlords.
A local bank account is not always legally required, but it is highly recommended because tenants prefer local transfers and it simplifies paying utilities, HOA fees, and contractors.
Yes, managing a rental remotely is feasible if you set up local support, meaning someone to handle guest handover, maintenance issues, and administrative paperwork on your behalf.
Thinking of buying real estate in Montenegro?
Acquiring property in a different country is a complex task. Don't fall into common traps – grab our guide and make better decisions.
What rental strategy makes the most money in Montenegro in 2026?
Is long-term renting more profitable than short-term in Montenegro in 2026?
As of early 2026, short-term rentals tend to generate higher gross income on the Montenegrin coast if you execute well with professional management, dynamic pricing, and strong reviews, while long-term rentals often win on net stability in Podgorica.
A well-managed coastal Airbnb can gross 30% to 50% more annually than a long-term lease on the same property, but after higher operating costs (cleaning, platform fees, turnover), the net advantage shrinks to roughly 10% to 25% in many cases.
Properties in prime coastal micro-locations like Budva Old Town, Kotor Bay waterfront, or Porto Montenegro in Tivat favor short-term renting because tourists will pay a premium for beach access, sea views, and walkability to attractions.
What's the average gross rental yield in Montenegro in 2026?
As of early 2026, the average gross rental yield for residential properties in Montenegro sits between 4.5% and 6.5%, depending on location and property type.
The realistic range spans from about 3.5% in premium coastal trophy locations where purchase prices are high, up to around 7% in Podgorica neighborhoods where purchase prices are more affordable relative to achievable rents.
Studios and one-bedroom apartments typically achieve the highest gross rental yields in Montenegro because they attract the largest pool of tenants, including expats, young professionals, and short-term visitors, while keeping purchase costs lower.
By the way, we have much more granular data about rental yields in our property pack about Montenegro.
What's the realistic net rental yield after costs in Montenegro in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Montenegro ranges from about 3.0% to 4.8% for long-term rentals and 3.5% to 6.0% for well-run short-term rentals.
Most landlords actually experience net yields between 2.8% and 5.5%, with the wide range reflecting differences in property tax rates, management efficiency, and vacancy levels.
In Montenegro specifically, the three main cost categories that eat into your gross yield are property tax (which municipalities set between 0.25% and 1.00% of assessed value), HOA and building maintenance fees (especially high in newer coastal developments with elevators and amenities), and management or letting fees (which run higher for short-term rentals due to constant guest turnover and cleaning).
You might want to check our latest analysis about gross and net rental yields in Montenegro.
What monthly rent can I get in Montenegro in 2026?
As of early 2026, typical monthly rents in Montenegro range from about 330 to 450 EUR for a studio, 420 to 950 EUR for a one-bedroom, and 550 to 1,400 EUR for a two-bedroom, depending heavily on whether you are in Podgorica or on the coast.
A realistic entry-level monthly rent for a decent studio in Podgorica starts around 330 EUR (about $360 USD), while coastal studios in Budva or Kotor typically start around 450 to 500 EUR ($490 to $545 USD).
A typical one-bedroom apartment in Podgorica rents for about 420 to 600 EUR per month ($460 to $655 USD), while coastal one-bedrooms range from 600 to 950 EUR ($655 to $1,035 USD).
For a two-bedroom apartment, expect to pay 550 to 850 EUR per month ($600 to $925 USD) in Podgorica, rising to 850 to 1,400 EUR ($925 to $1,525 USD) on the coast, with premium marina or sea-view units pushing even higher.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Montenegro.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Montenegro versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Montenegro in 2026?
What's the total "all-in" monthly cost to hold a rental in Montenegro in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Montenegro runs about 170 to 350 EUR ($185 to $380 USD) in Podgorica and 230 to 520 EUR ($250 to $565 USD) on the coast.
The realistic range for most standard rental properties spans from around 150 EUR per month for a basic Podgorica apartment up to 600 EUR or more for a fully serviced coastal unit in a premium building with high HOA fees.
In Montenegro specifically, the single largest cost category tends to be building maintenance and HOA fees, which can run 30 to 120 EUR per month in newer coastal complexes with elevators, pools, or concierge services.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Montenegro.
What's the typical vacancy rate in Montenegro in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Montenegro runs about 4% to 8% in Podgorica and 8% to 17% on the coast for annual leases.
In Podgorica, you should budget for about 0.5 to 1 month of vacancy per year because demand is steadier and less seasonal, while coastal landlords with annual leases should expect 1 to 2 months vacant due to the seasonal nature of the rental market.
The main factor driving vacancy differences across Montenegro neighborhoods is proximity to year-round employment and services, with areas near universities, government offices, and business centers in Podgorica staying occupied more consistently than pure tourist zones.
On the coast, the highest tenant turnover and vacancy typically occurs in late September through November, when the summer season ends and tourists leave, creating a gap before any winter demand materializes.
We have a whole part covering the best rental strategies in our pack about buying a property in Montenegro.
Get fresh and reliable information about the market in Montenegro
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Where do rentals perform best in Montenegro in 2026?
Which neighborhoods have the highest long-term demand in Montenegro in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Montenegro are City Kvart and Preko Morace in Podgorica and Dobrota in Kotor Bay, each offering a mix of amenities, accessibility, and tenant appeal.
Families in Montenegro tend to favor neighborhoods like Preko Morace and Gorica in Podgorica for their space, schools, and parking, while Donja Lastva in Tivat attracts families who want a year-round coastal lifestyle with good infrastructure.
Students concentrate in Podgorica neighborhoods like Stari Aerodrom and Zabjelo, where rents are more affordable and access to the university and city center is convenient.
Expats and international professionals gravitate toward Porto Montenegro and Donja Lastva in Tivat, Dobrota and Old Town Kotor, and upscale pockets in Budva like Gospostina, where English-speaking services, marina amenities, and lifestyle conveniences are readily available.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Montenegro.
Which neighborhoods have the best yield in Montenegro in 2026?
As of early 2026, the top three neighborhoods with the best rental yield in Montenegro are Zabjelo and Stari Aerodrom in Podgorica (where lower purchase prices boost returns) and Rozino in Budva (which rents well year-round without the trophy-level price tag of beachfront stock).
These top-yielding neighborhoods typically deliver gross rental yields in the 5.5% to 7% range, compared to 3.5% to 5% in premium coastal trophy locations like Porto Montenegro or Kotor Old Town.
The main characteristic that allows these neighborhoods to achieve higher yields is that purchase prices have not inflated as much as in headline tourist zones, yet rental demand remains solid because they serve locals, students, and budget-conscious expats who need affordable, livable housing year-round.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Montenegro.
Where do tenants pay the highest rents in Montenegro in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Montenegro are Porto Montenegro in Tivat, Dobrota seafront and Old Town Kotor in Kotor Bay, and Gospostina in Budva.
In these premium neighborhoods, a standard one-bedroom apartment typically rents for 900 to 1,400 EUR per month ($980 to $1,525 USD), while two-bedrooms can reach 1,500 to 2,200 EUR ($1,635 to $2,400 USD) or more for exceptional properties.
The main characteristic driving these high rents is direct marina access, sea views, and walkability to Old Town attractions or beach promenades, which creates scarcity value that tenants are willing to pay a premium for.
The typical tenant profile in these highest-rent neighborhoods includes wealthy expats, seasonal residents from Western Europe and Russia, yacht owners, remote workers with high incomes, and corporate renters servicing the tourism and hospitality industry.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Montenegro. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Montenegro in 2026?
What features increase rent the most in Montenegro in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Montenegro are parking (a huge differentiator in congested coastal towns like Budva and Kotor during summer), reliable air conditioning (expected by virtually all tenants on the coast), and a sea view or balcony with outdoor space.
A dedicated parking space can add 10% to 20% to achievable rent in coastal areas like Budva and Kotor Bay, where summer congestion makes off-street parking extremely valuable.
One commonly overrated feature that landlords invest in but tenants do not pay much extra for in Montenegro is luxury interior finishes like marble countertops or designer furniture, since most tenants prioritize practical amenities over aesthetics.
One affordable upgrade that provides a strong return on investment for landlords in Montenegro is installing or upgrading air conditioning and heating systems, because tenants will pay more for year-round comfort and these improvements are relatively inexpensive compared to structural changes.
Do furnished rentals rent faster in Montenegro in 2026?
As of early 2026, furnished apartments typically rent about 2 to 4 weeks faster than unfurnished ones in Montenegro because most renters, especially expats, seasonal workers, and short-stay tenants, expect move-in-ready units.
Furnished apartments in Montenegro generally command a rent premium of 10% to 20% over unfurnished equivalents, though the premium is higher on the coast where turnkey holiday-style rentals are the norm.
Get to know the market before you buy a property in Montenegro
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
How regulated is long-term renting in Montenegro right now?
Can I freely set rent prices in Montenegro right now?
In Montenegro, landlords have broad freedom to set initial rent prices based on market conditions, since there is no statutory rent control regime like those found in some Western European cities.
Rent increases during a tenancy are primarily governed by what you agree in the lease contract, as Montenegro does not impose a nationwide cap on annual rent increases, though general contract law principles of fairness apply.
What's the standard lease length in Montenegro right now?
The most common lease length for residential rentals in Montenegro is 12 months, often with an option to renew, though shorter or longer terms are negotiable between landlord and tenant.
Market practice for security deposits in Montenegro is usually one month of rent, sometimes two months for higher-end furnished units or tenants with limited local references, which translates to roughly 400 to 1,400 EUR ($435 to $1,525 USD) depending on the property.
Montenegro law requires landlords to return the security deposit at the end of a tenancy minus any documented damages beyond normal wear and tear, and best practice is to include a detailed inventory and condition report in the lease to avoid disputes.
We made this infographic to show you how property prices in Montenegro compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Montenegro in 2026?
Is Airbnb legal in Montenegro right now?
Airbnb-style short-term renting is legal in Montenegro, but it is regulated as a tourism and hospitality activity under the Law on Tourism and Hospitality, not as an informal side hustle.
To operate a short-term rental legally, you must register your property for hospitality services, typically categorized as "hospitality services in a household," and comply with guest registration and tourist tax obligations through your local municipality.
Montenegro does not currently impose a nationwide annual night limit like the 90-day caps seen in some European cities, though local municipal rules can affect operations, so you should verify requirements in your specific area.
The most common consequence for operating an unlicensed or non-compliant short-term rental in Montenegro is fines from local authorities, plus potential issues with tax compliance that could lead to penalties from the Tax Administration.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Montenegro.
What's the average short-term occupancy in Montenegro in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Montenegro varies significantly by location, ranging from about 31% nationally to 54% to 56% in prime coastal markets like Budva, Kotor, and Tivat.
The realistic range for most short-term rentals spans from around 25% in weaker locations or poorly managed listings up to 65% or higher for top-performing properties with great reviews, prime locations, and professional management.
The highest occupancy rates for short-term rentals in Montenegro occur during June, July, and August, when Adriatic beach tourism peaks and coastal towns fill with European visitors.
The lowest occupancy rates typically hit in November through February, when tourism slows dramatically and only properties positioned for off-season demand, such as those near ski areas or with strong digital nomad appeal, maintain meaningful bookings.
Finally, please note that you can find much more granular data about this topic in our property pack about Montenegro.
What's the average nightly rate in Montenegro in 2026?
As of early 2026, the average nightly rate for short-term rentals in Montenegro ranges from about $57 (roughly 52 EUR) in Podgorica to $119 to $142 (roughly 110 to 130 EUR) in prime coastal markets like Budva, Kotor, and Tivat.
The realistic range for most short-term rental listings spans from about $40 to $60 (37 to 55 EUR) for basic apartments in secondary locations up to $200 or more (185+ EUR) for premium sea-view properties in Porto Montenegro or Kotor Old Town.
Peak season rates in July and August can be 50% to 100% higher than off-season rates, meaning a property that fetches $100 per night in winter might command $150 to $200 per night during the summer rush.
Is short-term rental supply saturated in Montenegro in 2026?
As of early 2026, the prime coastal markets in Montenegro show meaningful saturation, with AirDNA tracking over 6,000 active rentals in Budva, over 4,000 in Kotor municipality, and over 1,500 in Tivat.
The number of active short-term rental listings in Montenegro has been growing steadily, though the pace of new supply has slowed compared to the rapid expansion seen in earlier years.
The most oversaturated neighborhoods for short-term rentals in Montenegro include central Budva, the immediate Old Town area of Kotor, and the core Porto Montenegro marina zone in Tivat, where competition is fierce and only top-tier listings stand out.
Neighborhoods that still have room for new short-term rental supply include secondary coastal areas like Risan, Mrcevac near Tivat, and parts of Petrovac, where listing density is lower and well-positioned properties can capture underserved demand.
Don't lose money on your property in Montenegro
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Montenegro, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Government of Montenegro Law on Tourism and Hospitality | Official government publication of core tourism law. | We used it to define what short-term renting legally means in Montenegro. We anchored registration and compliance requirements for hospitality services on this law. |
| ILO NATLEX Law on Foreigners | Reputable international legal database with consolidated text. | We used it to separate foreigners and residency law from property ownership rules. We confirmed that owning and renting does not require residency. |
| Montenegro Tax Administration | Official tax authority landing page for Montenegro. | We used it as the anchor source for tax compliance obligations. We framed practical steps for registration and filing through IRMS portal. |
| Montenegro Law on Immovable Property Tax | Official legal text from government endpoint. | We used it to cite the statutory property tax rate range of 0.25% to 1.00%. We built the all-in monthly holding cost budget from this legal baseline. |
| MONSTAT Tourism Statistics | National statistical agency with official methodology. | We used it to support the tourism demand story behind short-term rentals. We justified why coastal markets behave differently from Podgorica due to seasonality. |
| Global Property Guide Montenegro | Long-running property research publisher with clear methodology. | We used it to estimate gross rental yields using consistent methods. We adjusted their figures to net yields based on Montenegro-specific costs. |
| AirDNA Budva | Widely used short-term rental data provider with transparent metrics. | We used it to estimate occupancy, ADR, and revenue for Budva STRs. We benchmarked this tourism hotspot against the national average. |
| AirDNA Kotor | Market-level STR data for a key Montenegrin municipality. | We used it to provide Kotor-specific occupancy and ADR benchmarks. We discussed saturation using their tracked listing counts. |
| AirDNA Tivat | Market-level STR data for another top coastal investor area. | We used it to benchmark Porto Montenegro and Tivat dynamics. We anchored STR budgeting assumptions on their higher ADR figures. |
| Cushman & Wakefield Montenegro Property Market Report | Major global real estate services brand with professional research. | We used it to triangulate supply and price dynamics across regions. We used it as a professional-market lens alongside official statistics. |
| Chambers Global Practice Guides Real Estate Montenegro | Respected legal reference from a major legal publisher. | We used it to cross-check the legal environment for real estate. We simplified legal concepts for non-professional readers based on their summaries. |
| PwC Tax Summaries Montenegro | Top-tier professional services firm with reviewed tax summaries. | We used it to frame how Montenegro taxes residents versus non-residents. We avoided relying on blogs for tax rates by using their professional summaries. |
We have made this infographic to give you a quick and clear snapshot of the property market in Montenegro. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.