How to make a good property investment in Tivat

Last updated on January 18, 2024

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

Tivat, a coastal town in Montenegro, offers real estate investment prospects along the Adriatic coast. There are, actually, a lot of opportunities in this picturesque Mediterranean destination known for its marinas, scenic beauty, and growing property market.

How is the real estate market there? Are prices going up or going down? Do people make profits on their real estate investments? What about the rental demand?

We'll answer all these questions for you! When building and updating our property pack for Montenegro, our team has been researching and surveying this area. Actually, lots of customers are interested in investing there. So we thought it would be a good idea to add some information about it in our pack.

Investing in real estate in Tivat

Is Tivat an attractive destination for property investment?

Tivat, nestled in the heart of the Bay of Kotor in Montenegro, has emerged as an attractive destination for property investment for several reasons.

Its stunning Adriatic coastline, mild Mediterranean climate, and the development of luxury marina Porto Montenegro have all contributed to its allure. The real estate market in Tivat is dynamic, with a significant increase in demand for luxury properties, particularly since the introduction of Porto Montenegro, which has become a magnet for affluent buyers and investors.

One data point that underscores the dynamism of Tivat's real estate market is the steady rise in property prices over recent years.

For instance, the average price per square meter in Tivat has seen a consistent upward trend, reflecting the growing interest in the area. This is partly due to the Montenegrin government's efforts to attract foreign investment through programs like the Citizenship by Investment scheme, which have made it easier for non-residents to invest in property and gain residency or citizenship.

Historically, the real estate market in Tivat, like many others, has experienced fluctuations.

However, it has shown resilience and a capacity for recovery, particularly after the global financial crisis of 2008. Since then, the market has rebounded, with a noticeable influx of foreign investors and a robust growth in property values. The crisis served as a catalyst for regulatory improvements and increased transparency in the real estate sector, which has further bolstered investor confidence.

Investments in waterfront properties, luxury apartments, and villas within or near the Porto Montenegro marina tend to perform well due to their high demand among affluent buyers and renters. The budget for these types of investments can vary widely, but premium properties in prime locations command the highest prices. The region around the Bay of Kotor, including Tivat, is particularly sought after due to its natural beauty, historical significance, and the lifestyle it offers.

One very specific and positive aspect of properties in Tivat is the integration of luxury living with nautical lifestyle. Porto Montenegro, for example, is not just a marina; it's a comprehensive luxury community with residences, retail spaces, and leisure facilities all designed to cater to yacht owners and maritime enthusiasts. This unique blend of high-end real estate with a world-class marina facility is a distinctive feature that sets Tivat apart from other investment locations.

When it comes to the safety and stability of investing in Tivat, the region has proven to be a reliable choice. Montenegro's political stability, its potential accession to the European Union, and its adoption of the Euro as its currency all contribute to a secure investment environment.

Moreover, the country's legal framework for property ownership is friendly to foreign investors, providing additional peace of mind.

While knowing the local language is always an advantage in any foreign investment, it is not a necessity in Tivat. English is widely spoken, especially in the real estate and tourism sectors, and many agencies offer services in multiple languages to accommodate international clients.

However, having a local advisor or legal representative who understands the nuances of Montenegrin property law and the local market can be invaluable in ensuring a smooth investment process.

What are the trends forecasts for the real estate market in Tivat?

Tivat has been experiencing a real estate boom, largely driven by foreign investment and the appeal of the Adriatic coast.

The town, known for its luxury marina Porto Montenegro, has become a hotspot for affluent buyers seeking vacation homes or investment properties. The trend has been towards upscale development, with a focus on high-end apartments and villas that cater to a luxury market.

Looking ahead, there are several factors that could influence the trajectory of Tivat's housing market. The ongoing development of Porto Montenegro continues to attract wealthy international buyers, which suggests that demand for luxury properties is likely to remain strong. This development has not only provided high-end residential units but also brought with it an increase in amenities and services that make the area more attractive to both tourists and long-term residents.

Another factor that could contribute to a buoyant real estate market in Tivat is Montenegro's tax regime, which is relatively favorable compared to other European countries. The low income and corporate tax rates, along with a straightforward residency-by-investment program, make Tivat an attractive location for both living and doing business. This could continue to drive demand for real estate in the area.

However, there are also potential challenges on the horizon. Political stability and economic policies in Montenegro can greatly impact investment confidence. Any significant political upheaval or changes in economic policy that negatively affect the investment climate could deter foreign buyers and investors, potentially cooling the market.

Moreover, the global economic climate can also have a significant impact. Factors such as the European debt crisis or fluctuations in the Euro could affect the purchasing power of potential buyers from the EU, which is a key market for Tivat's real estate.

In terms of legislation and government policies, any changes to property taxes, real estate laws, or the residency-by-investment program could have a direct impact on the market.

For instance, if the government were to increase property taxes significantly or impose stricter regulations on foreign property ownership, this could dampen investor enthusiasm.

It's also worth considering the potential impact of environmental policies. As coastal development continues, there may be increased scrutiny on the environmental impact of such projects. Stricter environmental regulations could slow down new developments or increase costs for builders, which in turn could affect property prices and the attractiveness of the market.

Make a profitable investment in Tivat

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

What types of property can you buy in Tivat? What are the prices and yields?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Montenegro.

When considering investing in property in Tivat, Montenegro, you have a variety of options ranging from apartments and condos to luxury villas and undeveloped land.

Building a property is certainly doable, but it requires navigating local regulations, securing permits, and working with reliable contractors. The feasibility of such a project would depend on your budget, the location of the land, and the purpose of the investment.

The average cost of residential properties in Tivat can vary widely based on factors such as proximity to the waterfront, amenities, and the size and condition of the property. As an estimate, prices can range from a few thousand euros per square meter for luxury properties to more affordable options that might be less centrally located or require renovation.

In Tivat, as in many tourist destinations, there is a mix of renters and owners. Many investors buy properties with the intention of letting them out, especially given the city's growing popularity as a tourist destination. The rental yield potential can be attractive, particularly during the high season when demand for short-term rentals increases. This demand is driven by tourism, which significantly affects the property market. Properties that cater to tourists, such as those with good locations, views, and amenities, can command higher rental prices during peak periods.

The rental demand in Tivat is seasonal, with peaks during the summer months when tourists flock to the area for its beautiful coastline and luxury marina. This seasonality should be factored into your investment calculations, as the income generated during the high season must cover periods of lower demand.

Regarding the ease of reselling property, it can vary depending on market conditions and the type of property. Generally, properties in prime locations with high demand, such as those near the waterfront or in the city center, are easier to resell. The typical holding period for an investment property can range from a few years to a decade or more, depending on your investment strategy and market trends.

Capital gains prospects are harder to predict and will depend on the economic conditions in Montenegro, the state of the global property market, and local developments in Tivat. Historically, areas that see infrastructure improvements and increased popularity among tourists and expats may experience higher capital appreciation.

Which areas in Tivat offer the best investment opportunities?

When looking at Tivat, a coastal town in Montenegro, it's clear that it has become a hotspot for foreign property buyers, particularly due to its beautiful Adriatic coastline, the luxury marina Porto Montenegro, and its relatively affordable cost of living compared to other European coastal destinations.

The town attracts a diverse group of foreigners, including Russians, Western Europeans, and increasingly, Middle Eastern investors, all drawn by the potential for a Mediterranean lifestyle, investment opportunities, and in some cases, the benefits of Montenegro's tax system.

The most sought-after area for high-end investors is undoubtedly around Porto Montenegro, a luxury yacht marina with a surrounding residential village that offers upscale apartments, retail spaces, and leisure facilities. This area is particularly attractive for those looking for luxury and convenience, with everything from designer shops to fine dining readily available.

However, properties here come with a premium price tag.

For those looking for more budget-friendly options, neighborhoods like Donja Lastva and Seljanovo are still within close proximity to the marina but offer more affordable prices. These areas are nice for investment as they are still close to the main attractions of Tivat but without the high costs associated with Porto Montenegro. They are also experiencing a gradual increase in popularity as the spillover from the luxury market seeks more cost-effective solutions while maintaining a desirable location.

Looking at areas that are trending up and becoming more popular, one could consider the outskirts of Tivat and the surrounding villages. These areas offer more space and a quieter lifestyle, which could be appealing to those looking to escape the hustle and bustle of the town center or the marina. As infrastructure improves and the region continues to develop, these areas could see an increase in demand, leading to potential property price increases.

In terms of predictions, areas that are currently undervalued but have potential due to their location or planned developments could see an increase in property prices and rental demand.

For example, areas with planned improvements in infrastructure, such as better roads or expanded marina facilities, could become more attractive to investors.

Additionally, as Tivat continues to grow in popularity as a tourist destination, properties that can be used as vacation rentals may see an increase in demand.

However, there are also regions that might be less attractive to investors. Areas that are far from the coast and lack amenities or are not easily accessible might not see the same level of demand as those closer to the main attractions.

Additionally, areas that have not been well-maintained or are known for higher crime rates should be approached with caution.

When considering an investment in Tivat, you have to weigh the pros and cons of each area. Upscale areas like Porto Montenegro offer luxury and convenience but at a higher cost, while more budget-friendly neighborhoods may not have the same level of amenities but offer potential for growth. It's also crucial to consider the long-term plans for the area, as infrastructure developments and tourism trends can significantly impact property values and rental demand.

As with any property investment, it's essential to conduct thorough research, possibly consult with local real estate experts, and consider your own investment goals and risk tolerance. The Montenegrin property market has its nuances, and understanding these can be key to making a successful investment.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Montenegro.

Area	Attractions	Price Level	Investor Interest	Notes
Porto Montenegro	Luxury yacht marina, upscale apartments, retail spaces, leisure facilities	Premium	High-end investors	Luxury and convenience with high costs
Donja Lastva and Seljanovo	Close to main attractions	Affordable	Budget-conscious investors	More cost-effective, increasing popularity
Outskirts of Tivat and surrounding villages	More space, quieter lifestyle	Variable	Investors seeking tranquility	Potential for future demand and price increases
Areas with planned infrastructure improvements	Location potential, planned developments	Undervalued	Strategic investors	Could become more attractive and see price increases
Regions far from the coast or lacking amenities	Limited attractions	Lower	Less attractive to investors	Lower demand, caution advised

Make sure you understand the real estate market in Tivat

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.

Who can invest in real estate in Tivat?

Investing in property as a foreigner in Tivat

If you're considering investing in housing property in Tivat, Montenegro, you have to understand the legal framework regarding foreign property ownership.

Generally, foreigners have the right to purchase buildings and apartments in Montenegro, just like local citizens.

However, when it comes to owning land, there are certain restrictions.

Foreign individuals and companies can own property, but with the exception of agricultural land, forests, and cultural monuments of great and exceptional importance, which are protected by law. For such types of land, you would typically need to establish a company in Montenegro to acquire the land indirectly. This is a common practice and is legally permitted.

There is no difference in property rights based on the country you're from, as Montenegro applies its property laws equally to all non-residents. You do not need to live in the country to purchase and own property, and a tourist visa is generally sufficient for the buying process.

However, if you plan to stay longer and enjoy your property, you might want to consider applying for a residence permit.

Ownership of property in Montenegro is not limited by time, so you can hold onto your property indefinitely. You can also pass it on to heirs or sell it to another foreigner without additional restrictions, following the same legal procedures as Montenegrin citizens.

When purchasing property, you will need to obtain a Tax Identification Number (TIN), which is necessary for the transaction and future tax obligations. This is a standard procedure and can be obtained from the local tax authority.

While you don't need specific authorization from a governmental institution to purchase property, the transaction must be registered with the Real Estate Administration, which is a standard procedure to ensure the transfer of ownership is legally recognized.

Having a local bank account is not strictly necessary, but it can facilitate the process of paying for the property and handling other expenses related to property ownership, such as utility bills and taxes. It's also worth noting that while you can make payments in foreign currencies, the official transactions will be converted and processed in Euros, which is the official currency of Montenegro.

Foreigners are subject to the same tax rates as locals when it comes to property taxes. The tax rate is determined by the local municipality and is based on the location, type, and value of the property.

Residency in Tivat

If you're considering Tivat, Montenegro, as a place to become a resident through property investment, you have to understand the country's specific requirements and procedures.

Montenegro offers a residency-by-investment program, which allows foreign nationals to obtain residency by purchasing real estate.

To start the process, you would need to find and purchase a property in Montenegro. There isn't a universally fixed minimal investment amount, but the value of the property should be significant enough to demonstrate your commitment to the country. It's advisable to consult with a local real estate agent or legal expert to understand the current market and any changes in the investment threshold.

Once you've purchased a property, you'll need to apply for a temporary residence permit. This involves submitting various documents, including proof of ownership, a valid passport, proof of health insurance, and evidence of sufficient funds to support yourself without needing employment in Montenegro. The exact requirements can vary, so you have to check with the Montenegrin embassy or a local immigration lawyer for the most up-to-date information.

After successfully obtaining a temporary residence permit, you'll need to renew it annually. During this period, you must maintain your investment and comply with local laws to remain eligible for residency. The number of people who have used this scheme varies over time, and such statistics are not readily available without current data.

Temporary residency can potentially lead to permanent residency after a certain period, usually five years of continuous legal residence.

However, this is subject to meeting additional criteria set by the Montenegrin government, which may include language proficiency, integration into Montenegrin society, and a clean criminal record.

As for citizenship, owning property and holding residency can indeed pave the way to applying for citizenship, but it's not automatic. After a period of legally residing in Montenegro, which is typically 10 years, you may be eligible to apply for citizenship through naturalization. This process would require you to demonstrate ties to the country, knowledge of the language and culture, and potentially renounce your previous citizenship, as Montenegro generally does not allow dual citizenship.

Remember, immigration laws and policies can change, and the success of such applications often depends on individual circumstances. It's always best to seek professional advice and ensure you have the most current information before making any decisions or investments.

Don't lose money on your property in Tivat

100% of people who have lost money in Montenegro have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

How to get started to invest in real estate in Tivat?

What is the step-by-step process to buy property in Tivat?

We'll give her a brief overview. However, there is a detailed and dedicated document to the buying process in our property pack for Montenegro.

When you decide to buy a property in Tivat, which is a coastal town in Montenegro, the process begins with you making an offer on a property you're interested in.

Once your offer is accepted, you'll need to sign a preliminary contract and pay a deposit, which is typically around 10% of the purchase price. This contract outlines the terms of the sale and the timeline for the remaining payments.

Next, you'll need to conduct due diligence, which involves checking the legal status of the property, ensuring there are no outstanding debts or liens, and verifying that the seller has the right to sell the property. This step is crucial and can be complicated, as it requires a thorough understanding of local property laws and regulations. Errors in due diligence can lead to significant problems down the line, so it's often wise to hire a local lawyer or real estate agent to assist you.

After due diligence is complete and everything checks out, you'll move on to signing the main sales contract. This is a formal agreement that transfers ownership from the seller to you. At this point, you'll pay the remaining balance of the purchase price, and the seller will provide you with all necessary documents, such as the title deed.

One unusual aspect of buying property in Montenegro, which may not exist in other countries, is the need to register the purchase with the local real estate cadaster to obtain full legal ownership. This step is essential and involves submitting the sales contract and other required documents to the cadaster office. The registration process can be bureaucratic and time-consuming, and it's another area where language barriers can cause delays if you're not familiar with Montenegrin.

The entire property buying process in Tivat can take anywhere from a few weeks to several months, depending on various factors such as the efficiency of the local bureaucracy, the complexity of the property's legal status, and whether you encounter any issues during due diligence. The most time-consuming parts of the process tend to be the due diligence and the registration with the real estate cadaster.

While you don't absolutely need to know the local language to navigate the property buying process, it can be extremely helpful. Many legal documents and procedures may only be available in Montenegrin, and communicating with local authorities and service providers can be challenging without language proficiency. Hiring a local professional who speaks English and Montenegrin can help bridge this gap.

As for cultural norms and practices, you have to be aware of local customs when it comes to negotiations and business dealings. Montenegrins may have a more relaxed approach to time and deadlines, which can be frustrating if you're used to a more punctual and fast-paced environment.

Additionally, personal relationships and trust play a significant role in business transactions, so it's beneficial to establish a good rapport with the seller and local professionals assisting you.

Overall, while the process of buying property in Tivat can be complex and requires attention to detail, it's manageable with the right assistance and preparation. Hiring knowledgeable local experts can help you navigate the most complicated steps and avoid common pitfalls, ensuring a smoother path to owning your new property in Tivat.

Looking for property in Tivat

Please note that there is a list of contacts (real estate agencies, lawyers, notaries, etc.) and websites in our property pack for Montenegro.

When you're looking to find a house in Tivat, Montenegro, you have several options at your disposal.

People often start their search online, where numerous housing portals showcase available properties. These websites are user-friendly and allow you to filter your search according to your preferences, such as location, price, and type of property.

Real estate agents are also a common route for house hunters in Tivat. Agents typically have a portfolio of listings and can provide valuable local insights and assistance throughout the buying process. Working with a real estate agent is recommended, especially if you're not familiar with the area or the local real estate market. They can guide you through the intricacies of the buying process, which can be particularly helpful if you're a foreign buyer.

While many real estate agents are reliable and professional, you have to be cautious. Not all agents are created equal, and it's wise to look for those with a good reputation and proper credentials. Red flags to watch out for include agents who are pushy, those who are not transparent about fees, or those who seem to have little knowledge of the local market.

In Tivat, as in many places, buyers can access property listings directly, but an agent can provide a more curated selection based on your needs and preferences. The role of a buyer's agent is to represent your interests in the transaction, helping you to find the right property and negotiate the best possible price. A seller's agent, on the other hand, is focused on representing the seller's interests and achieving the highest sale price.

Commissions for real estate agents in Tivat are not standardized and can vary. It's important to discuss fees upfront and understand what services are included. Typically, the seller pays the agent's commission, but this can be a point of negotiation in the sale agreement.

When dealing with real estate agents, it's beneficial to be clear about your needs and budget from the outset. Good negotiation strategies include being well-informed about the local market, showing willingness to walk away if your terms aren't met, and being ready to move quickly if you find the right property. Remember, the more research you do beforehand, the better positioned you'll be to negotiate effectively.

Buying property in Tivat

When you're looking to buy a house in Tivat, or anywhere in Montenegro for that matter, negotiation is quite common.

It's a part of the buying process, and most sellers expect some level of negotiation. The amount you can negotiate off the selling price can vary widely depending on the property's location, condition, and how long it's been on the market. Typically, buyers might start by offering 5% to 10% below the asking price, but this is very situational. Some properties might have little room for negotiation, especially if they are in high demand or priced competitively from the start.

Conducting due diligence is a critical step in the home-buying process. It involves a series of checks and investigations to ensure that the property you're interested in is a sound investment and that there are no legal issues attached to it. You'll want to check for any outstanding debts, liens, or encumbrances that could affect your ownership. Also, you have to verify that all property taxes have been paid and that there are no hidden costs that could surprise you after the purchase.

For the title search and ensuring clear title ownership, you can start by requesting the extract from the Real Estate Cadastre, which is the public registry that contains information about the property, including its legal status and the identity of the owner. This will help you confirm that the seller is the true owner of the property and that there are no legal claims or disputes over the property.

While it's not mandatory to hire a lawyer or a notary in Montenegro, it is highly recommended, especially if you're not familiar with the local real estate laws and practices. A lawyer can help you navigate the legal aspects of the purchase, while a notary is involved in the final stages of the transaction to certify the documents and ensure that the transfer of ownership is conducted legally. The cost for these services can vary, but you should budget for legal fees as part of your overall purchase costs.

Regarding the specific documents required for the purchase, you'll need a valid passport or another form of identification, proof of funds, and the sales contract. The seller should provide you with the property's title deeds, proof of no outstanding debts, and an energy performance certificate. If the property is part of a homeowners' association, you might also need documents related to the association's rules and financial status.

The property ownership is officially transferred and registered with the government through a process that involves signing a sales contract, which is then certified by a notary. After the contract is notarized, the buyer must pay the property transfer tax. Once the tax is paid, the notary submits the contract and proof of tax payment to the Real Estate Cadastre to register the change of ownership. The Cadastre issues a confirmation that the property has been registered in the buyer's name, which is the final step in the process.

Remember, buying a house is a significant investment, and you have to take the time to understand the process and ensure that all legal aspects are thoroughly covered. Working with professionals like real estate agents, lawyers, and notaries can provide you with the guidance and peace of mind you need to make a successful purchase.

Make a profitable investment in Tivat

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

Financing a property acquisition in Tivat

If you're a foreign investor looking to finance property investments in Tivat, Montenegro, there are several factors to consider, including the financing options, payment schedules, and associated costs.

Financing a property as a foreigner can be more challenging than for a local buyer. In Montenegro, it's less common for foreigners to obtain a mortgage from local banks due to the stringent requirements and higher interest rates compared to those in many Western countries.

However, it's not impossible. If you do manage to secure a loan, the interest rates can vary widely, but they are generally higher than what you might expect in the EU or the US. You'll need to provide proof of income, a good credit history, and often a larger down payment.

Speaking of down payments, when you find a property you wish to purchase, you'll typically pay a deposit to secure the property. This is usually done after you've agreed on the price but before the purchase agreement is signed. The deposit amount can range, but it's often around 10% of the total sale value. This shows the seller that you're serious about the purchase.

The full price of the house is usually paid after the signing of the purchase agreement, and the payment schedule can be outlined within that agreement. It's essential to have a clear understanding of when each payment is due to avoid any misunderstandings.

Closing costs and fees associated with buying property in Tivat can include legal fees, notary fees, real estate agency fees, and property transfer taxes. Legal fees for a lawyer to help you through the process can vary, but you should budget for around 1% of the purchase price. Notary fees are typically lower, but they are still a necessary part of the process. Real estate agency fees are usually around 3-5% of the purchase price and are typically paid by the buyer in Montenegro.

When it comes to taxes, you'll need to pay a property transfer tax, which is 3% of the property's market value in Montenegro. This is a one-time tax paid upon the transfer of ownership. There's also an annual property tax, which varies depending on the location and size of the property but is generally quite low, ranging from 0.1% to 1% of the property's market value.

Capital gains tax is another consideration if you decide to sell the property. If you sell the property within 10 years of purchasing it, you'll be subject to capital gains tax, which is calculated based on the profit you make from the sale. The rate can vary, so you have to consult with a tax professional to understand the potential tax implications.

Additional fees might include utility connection fees if the property is new and requires such services to be set up. Also, consider the ongoing maintenance costs, homeowners' association fees if applicable, and insurance for the property.

Remember, you have to do thorough due diligence and possibly consult with a local real estate expert or legal advisor to navigate the specifics of property investment in Tivat. They can provide guidance tailored to your situation, ensuring that you understand all the financial commitments and legal requirements before proceeding with your investment.

What are the risks and pitfalls when buying property in Tivat?

When you're considering property investment in Tivat, Montenegro, you have to be aware of the common risks and nuances of the local real estate market.

While Tivat, with its stunning Adriatic coastline and luxury marina development, has become an attractive spot for foreign investors, there are certain factors you should consider to ensure your investment is secure.

Firstly, property rights for foreigners in Montenegro are generally secure, provided that due diligence is done correctly. Foreigners have the right to own property, but you have to ensure that you have a clear title and that the property is registered properly. Engaging a reputable local lawyer who understands the intricacies of Montenegrin property law is essential.

There are pitfalls unique to Tivat that you might not be aware of.

For instance, some properties might be advertised with potential for development or expansion, but local zoning laws could be restrictive. It's not uncommon for foreign investors to purchase property with the intention of making significant changes, only to find out that local regulations prevent them from doing so. Another pitfall could be the reliance on verbal agreements or handshake deals which are not uncommon in the region. These informal agreements might not be legally binding, leading to disputes or financial losses.

Environmental risks do exist in the region, including seismic activity since Montenegro is in an earthquake-prone area. While Tivat is not known for severe natural disasters, climate change implications such as rising sea levels could potentially affect coastal properties in the future. These factors could influence property values and should be considered when making your investment.

Regarding case studies of foreign investment failures, detailed information might not be readily available due to privacy concerns and the reputational interests of involved parties.

However, common themes in unsuccessful investments often include failure to properly assess the market, underestimating renovation costs, or encountering legal disputes over property boundaries or titles.

Insurance is a critical consideration for protecting your investment. In Montenegro, property insurance is available and can cover a range of risks, including fire, theft, and natural disasters. Liability insurance is also advisable, especially if you plan to rent out your property, as it can protect you against claims from tenants or visitors who might get injured on your property.

To mitigate these risks, thorough research and professional advice are key. Engage with local real estate agents, lawyers, and financial advisors who have a proven track record with foreign investors. They can provide valuable insights into the local market and help navigate the legal and regulatory landscape.

In case of conflicts, Montenegro has legal protections in place for property buyers, including foreign investors. The country's legal system is based on civil law, and there are courts that handle commercial and property disputes.

However, the efficiency and reliability of legal proceedings can vary, and it's generally advisable to settle disputes through negotiation or mediation when possible.

Remember, investing in property in Tivat, as with any location, requires a careful approach. By being aware of the local market conditions, legal framework, and potential risks, and by seeking the right professional support, you can make a more informed decision and increase the likelihood of a successful investment.