Authored by the expert who managed and guided the team behind the Montenegro Property Pack
Yes, the analysis of Tivat's property market is included in our pack
Yes, as a foreigner, you can legally own and rent out residential property in Tivat right now.
Montenegro places no restrictions on foreign ownership of apartments and houses, and renting them out is straightforward if you follow the local registration and tax rules.
We constantly update this blog post to reflect the latest regulations and market conditions in Tivat.
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 Tivat.
Insights
- Tivat's average short-term rental occupancy is around 56%, but top-performing properties in Porto Montenegro can exceed 70% during the summer months.
- Gross rental yields in Tivat range from 4.4% to 6.5%, which is lower than Podgorica's 6.4% average because Tivat's purchase prices are significantly higher.
- The price gap between Porto Montenegro at roughly 7,500 euros per square meter and Kalimanj at around 3,500 euros per square meter means your yield can double depending on where you buy.
- Montenegro charges a flat 15% tax on rental income, but you can deduct either actual expenses or a standard 30% to 50% deduction for tourism rentals.
- Furnished apartments in Tivat typically rent 20% to 30% faster than unfurnished ones because expats and seasonal visitors dominate the tenant pool.
- Winter vacancy is the biggest challenge for Tivat landlords, with short-term rental occupancy dropping to around 14% in January compared to 71% in August.
- Seljanovo is emerging as Tivat's best balanced yield zone because it offers Porto Montenegro proximity without the luxury price premium.
- The average nightly rate for Tivat Airbnb listings is around 130 to 145 euros, but this can spike to 200 euros or more during peak summer weeks.
Can I legally rent out a property in Tivat as a foreigner right now?
Can a foreigner own-and-rent a residential property in Tivat in 2026?
As of early 2026, foreigners can legally buy, own, and rent out residential property in Tivat with the same rights as Montenegrin citizens, and this is a very common investment pattern along the coast.
The most straightforward ownership structure for foreigners in Tivat is direct personal ownership, which works for apartments and houses on construction-classified land without requiring a local company or special permits.
The single most important step is ensuring your property is properly registered in Montenegro's state cadastre, because your ownership rights and ability to defend them legally depend entirely on this official registration.
If you're not a local, you might want to read our guide to foreign property ownership in Tivat.
Do I need residency to rent out in Tivat right now?
No, you do not need to be a resident of Montenegro to rent out property you own in Tivat, as ownership rights include the right to generate rental income regardless of your visa or residency status.
You will need a Montenegrin tax identification number to legally collect and declare rental income, and registering with the local tax office is required before you start receiving rent.
While not legally mandatory, a Montenegrin bank account makes collecting rent and paying local expenses like utilities, management fees, and tourist taxes much easier in practice.
Many foreign owners manage their Tivat rentals entirely remotely by using local property managers who handle keys, maintenance, and the required guest registration for short-term stays through Tivat's digital Lotos system.
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What rental strategy makes the most money in Tivat in 2026?
Is long-term renting more profitable than short-term in Tivat in 2026?
As of early 2026, short-term renting in Tivat can generate higher gross revenue than long-term renting, but it comes with more work, higher costs, and significant winter seasonality that can eat into your net returns.
A well-managed short-term rental in a prime Tivat location like Porto Montenegro or Donja Lastva might gross 12,000 to 18,000 euros annually, while a comparable long-term rental typically brings in 8,000 to 12,000 euros per year with much less hassle.
Short-term renting financially outperforms long-term in Tivat specifically when your property is in a tourism-adjacent micro-market like Porto Montenegro, Boka Place, or waterfront Seljanovo, and when you can deliver excellent guest experience with fast turnover operations.
What's the average gross rental yield in Tivat in 2026?
As of early 2026, the average gross rental yield for residential properties in Tivat ranges from about 4.4% to 6.5%, depending heavily on your purchase price and whether you do long-term or short-term rentals.
The realistic gross yield range in Tivat spans from around 4% for luxury Porto Montenegro apartments bought at premium prices to 7% or higher for well-located properties purchased in more affordable neighborhoods like Kalimanj or parts of Mrčevac.
Studios and one-bedroom apartments typically achieve the highest gross yields in Tivat because they have the lowest purchase prices relative to achievable rents, especially when furnished and positioned for the short-term tourist market.
By the way, we have much more granular data about rental yields in our property pack about Tivat.
What's the realistic net rental yield after costs in Tivat in 2026?
As of early 2026, the average net rental yield after all costs in Tivat typically falls between 2.5% and 4% for long-term rentals and between 3.5% and 6% for well-run short-term rentals.
Most Tivat landlords realistically experience net yields in the 3% to 5% range once you account for vacancy, taxes, management, and maintenance, with higher performers reaching 6% only through excellent operations and prime locations.
The three main cost categories that reduce gross to net yield specifically in Tivat are the 15% rental income tax that applies after deductions, the significant winter vacancy that affects short-term rentals from November through April, and the above-average maintenance costs caused by coastal humidity and heavy summer air conditioning use.
You might want to check our latest analysis about gross and net rental yields in Tivat.
What monthly rent can I get in Tivat in 2026?
As of early 2026, typical monthly rents in Tivat for long-term leases run approximately 450 to 700 euros for a studio, 650 to 1,000 euros for a one-bedroom, and 900 to 1,600 euros for a two-bedroom apartment.
A realistic entry-level monthly rent for a decent studio in Tivat starts around 450 to 550 euros in neighborhoods like Kalimanj or Mrčevac, which translates to roughly 490 to 600 US dollars at current exchange rates.
A typical one-bedroom apartment in central Tivat or Seljanovo rents for 700 to 900 euros per month, or about 760 to 980 US dollars, with furnished units in good condition commanding the higher end of this range.
A standard two-bedroom apartment in desirable areas like Centar, Seljanovo, or Donja Lastva typically rents for 1,000 to 1,400 euros monthly, approximately 1,090 to 1,520 US dollars, with Porto Montenegro properties pushing above 1,600 euros.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Tivat.
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 Tivat in 2026?
What's the total "all-in" monthly cost to hold a rental in Tivat in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Tivat ranges from about 180 to 450 euros for long-term rentals and 350 to 900 euros for short-term rentals, excluding any mortgage payments.
The realistic monthly holding cost range for most standard Tivat rental apartments spans from around 200 to 600 euros, or approximately 220 to 650 US dollars, with the variation depending mainly on building type, service level, and rental strategy.
Property management fees tend to be the largest single cost category in Tivat, running 8% to 12% of rent for long-term management and 15% to 25% of revenue for full-service short-term rental operations that handle everything from bookings to cleaning.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Tivat.
What's the typical vacancy rate in Tivat in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Tivat is around 8%, meaning landlords should budget for roughly one month of vacancy per year, while short-term rentals average about 44% vacancy due to strong seasonality.
Long-term landlords in Tivat should realistically budget for one to one and a half months of vacancy annually, mainly because lease turnovers cluster in September and October when seasonal residents and workers depart after the summer tourism season.
The main factor causing vacancy rate differences across Tivat neighborhoods is proximity to year-round employment and amenities, with central areas like Centar and Seljanovo enjoying lower vacancy than peripheral locations that depend more heavily on summer tourism.
The highest tenant turnover and vacancy in Tivat typically occurs in late September through November, when the summer tourism season ends and seasonal workers leave, followed by a secondary soft period in January and February.
We have a whole part covering the best rental strategies in our pack about buying a property in Tivat.
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Where do rentals perform best in Tivat in 2026?
Which neighborhoods have the highest long-term demand in Tivat in 2026?
As of early 2026, the three Tivat neighborhoods with the highest overall long-term rental demand are Centar for its walkability and daily services, Seljanovo for its marina proximity with a residential feel, and Donja Lastva for its coastal appeal that works year-round.
Families seeking long-term rentals in Tivat concentrate their searches in Seljanovo and Donja Lastva because these areas offer more space, calmer streets, and access to daily life infrastructure like schools and supermarkets.
Student demand in Tivat is quite thin compared to Podgorica or even Kotor, but seasonal hospitality workers and marina interns create rental demand in affordable areas like Centar, Kalimanj, and parts of Mrčevac.
Expats and international professionals in Tivat strongly prefer Porto Montenegro for its luxury lifestyle, followed by Seljanovo for modern furnished apartments and waterfront pockets of Donja Lastva that combine quality with character.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Tivat.
Which neighborhoods have the best yield in Tivat in 2026?
As of early 2026, the three Tivat neighborhoods offering the best rental yields are Kalimanj for its lower purchase prices with decent rental demand, Seljanovo for its balanced price-to-rent ratio near Porto Montenegro, and parts of Kava and Mrčevac for value-focused investors targeting long-term tenants.
The estimated gross rental yield range in these top-yielding Tivat neighborhoods runs from about 5% to 7%, compared to 4% to 5% in premium Porto Montenegro where high purchase prices compress returns.
The main characteristic that allows these Tivat neighborhoods to achieve higher yields is that their purchase prices have not inflated to Porto Montenegro levels while their rents remain supported by spillover demand from marina workers, local businesses, and cost-conscious expats who want Tivat location without luxury prices.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Tivat.
Where do tenants pay the highest rents in Tivat in 2026?
As of early 2026, the three Tivat neighborhoods where tenants pay the highest rents are Porto Montenegro and Boka Place at the top of the market, prime waterfront Donja Lastva, and select new-build sea-view properties in Centar and Seljanovo.
The typical monthly rent range for a standard apartment in these premium Tivat neighborhoods runs from 1,200 to 2,500 euros, or roughly 1,300 to 2,700 US dollars, with exceptional marina-view penthouses in Porto Montenegro exceeding 3,000 euros.
The main characteristic that makes these Tivat neighborhoods command the highest rents is not just location but the combination of turnkey modern furnishing, branded building management, and direct access to Porto Montenegro's marina lifestyle including restaurants, retail, and superyacht atmosphere.
The typical tenant profile in Tivat's highest-rent neighborhoods includes yacht crew and marina professionals on seasonal contracts, wealthy remote workers seeking Adriatic lifestyle, and international business visitors who need premium furnished accommodation for stays of one to six months.
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 Tivat in 2026?
What features increase rent the most in Tivat in 2026?
As of early 2026, the three property features that increase monthly rent the most specifically in Tivat are walking distance to Porto Montenegro marina, reliable dedicated parking which is scarce during summer congestion, and strong air conditioning with good insulation to handle coastal humidity.
Walking distance to Porto Montenegro can add a rent premium of 15% to 25% compared to similar properties further from the marina, making location the single most valuable feature for Tivat rental income.
One commonly overrated feature that Tivat landlords invest in but tenants do not pay much extra for is luxury bathroom fixtures, because most renters care far more about reliable hot water, good water pressure, and functional AC than high-end marble finishes.
One affordable upgrade that provides strong return on investment for Tivat landlords is installing fast, stable fiber internet, which can cost under 500 euros but significantly increases appeal to the remote workers and digital nomads who increasingly make up Tivat's tenant pool.
Do furnished rentals rent faster in Tivat in 2026?
As of early 2026, furnished apartments in Tivat typically rent about two to three weeks faster than unfurnished equivalents because a large share of demand comes from expats, seasonal residents, and short-to-medium term renters who do not want to buy furniture.
Furnished apartments in Tivat command a rent premium of roughly 15% to 25% over unfurnished ones, which generally covers the cost of good quality furniture within two to three years while also reducing vacancy time.
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How regulated is long-term renting in Tivat right now?
Can I freely set rent prices in Tivat right now?
Landlords in Tivat have significant freedom to set initial rent prices because long-term rentals are primarily governed by Montenegro's Law on Obligations, which treats lease terms as contractual matters rather than imposing rent caps or price controls.
Rent increases during a tenancy in Tivat are not capped by law and are generally determined by whatever terms you negotiate in your lease contract, though market conditions and tenant retention typically keep increases moderate in practice.
What's the standard lease length in Tivat right now?
The most common lease length for residential rentals in Tivat is 12 months, though shorter terms of 6 months are sometimes negotiated for seasonal or expat tenants, and longer terms are possible if both parties agree.
Security deposits in Tivat are typically one month's rent for standard apartments and sometimes two months for higher-end furnished properties, with no strict legal cap because the amount is determined by contract negotiation.
The rules for returning security deposits in Tivat are contractual rather than statutory, so your lease should clearly state the conditions for deductions, the timeline for return after move-out, and the process for documenting any damages.
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 Tivat in 2026?
Is Airbnb legal in Tivat right now?
Yes, Airbnb-style short-term rentals are legal in Tivat as long as you properly register and categorize your accommodation under Montenegro's tourism framework and comply with local guest reporting requirements.
To legally operate a short-term rental in Tivat, you need to register your property with the local tourism authorities, obtain categorization, and register each guest through Tivat's digital system, which the Municipality actively encourages through its official guidance.
As of early 2026, Montenegro does not impose a simple annual night limit like some European cities, but instead focuses on registration, categorization, and proper guest reporting as the main compliance requirements.
The most common consequence for operating an unregistered short-term rental in Montenegro is fines ranging from roughly 1,300 to 13,400 euros for individuals, calculated as 2 to 20 times the minimum wage, with higher penalties for companies.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Tivat.
What's the average short-term occupancy in Tivat in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Tivat is around 56%, though this masks extreme seasonal variation between summer peaks and winter lows.
The realistic occupancy range for Tivat short-term rentals spans from about 30% for typical properties to over 70% for top performers with excellent locations, professional management, and strong guest reviews.
The months with highest short-term rental occupancy in Tivat are July and August, when occupancy can exceed 80% to 90% as tourists flood the Adriatic coast for summer holidays.
The lowest occupancy months for Tivat short-term rentals are December through February, when occupancy often drops below 20% and many owners either switch to long-term winter leases or accept minimal bookings.
Finally, please note that you can find much more granular data about this topic in our property pack about Tivat.
What's the average nightly rate in Tivat in 2026?
As of early 2026, the average nightly rate for short-term rentals in Tivat is approximately 130 to 145 euros, or roughly 140 to 160 US dollars, though this varies significantly by property type, location, and season.
The realistic nightly rate range for Tivat short-term rentals spans from about 60 euros for basic studios in off-peak months to 250 euros or more for well-appointed apartments in Porto Montenegro during peak summer weeks.
The typical nightly rate difference between peak season and off-season in Tivat can be dramatic, with July and August rates often running 80 to 120 euros higher than January rates for the same property.
Is short-term rental supply saturated in Tivat in 2026?
As of early 2026, Tivat's short-term rental market is competitive but not fully saturated, with success depending heavily on property differentiation, quality, and professional management rather than simply listing a unit.
The number of active short-term rental listings in Tivat has been growing steadily, with current estimates around 1,500 to 1,600 active listings, reflecting both increased investor interest and the maturation of the tourism accommodation market.
The most oversaturated short-term rental areas in Tivat are the generic apartment clusters near Porto Montenegro where undifferentiated studios compete mainly on price, leading to compressed rates and higher vacancy.
Neighborhoods in Tivat that still have room for new short-term rental supply include Donja Lastva for its authentic coastal character, parts of Seljanovo for marina-adjacent value, and emerging areas like Krašići that offer growth potential with lower entry costs.
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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 Tivat, 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 |
|---|---|---|
| Montenegro Real Estate Administration | Official state body responsible for cadastre and property registration. | We used it to anchor the concept that ownership is real when registered. We explained why title checks matter for buy-to-let risk. |
| Law on Tourism and Hospitality | Primary national legal framework for tourism and hospitality activities. | We used it to confirm that household accommodation is legally recognized when registered. We framed what legal Airbnb practically means in Tivat. |
| PwC Tax Summaries - Montenegro | Widely trusted professional tax reference with transparent citations. | We confirmed that non-residents are taxed on Montenegro-sourced income. We grounded rental income tax treatment and expense deduction concepts. |
| AirDNA - Tivat Market Data | Recognized short-term rental data provider with consistent methodology. | We used it for occupancy and average daily rate benchmarks for Tivat. We estimated realistic net returns for short-term rentals in early 2026. |
| Estitor - Tivat Listings | Large structured listing database with neighborhood segmentation. | We estimated current asking rents by unit size and compared areas like Centar versus Seljanovo versus Porto Montenegro. |
| Tivat Tourist Organisation | Official local tourism body providing operational compliance guidance. | We explained the actual guest registration workflow in Tivat including digital registration. We highlighted what remote owners can do via managers. |
| MONSTAT - New Dwelling Prices | Montenegro's official statistics office providing verified market data. | We used it as the official baseline for coastal region prices per square meter. We sanity-checked that Porto Montenegro premiums sit above coastal average. |
| Global Property Guide - Montenegro | Established cross-country reference that points to governing laws. | We anchored that leases are governed primarily by the Law on Obligations. We informed rent setting and lease length discussions without inventing caps. |
| Municipality of Tivat | Local municipal authority communicating official compliance expectations. | We confirmed that Tivat actively pushes registration of accommodation providers. We made the short-term compliance section Tivat-specific. |
| Global Property Guide - Price History | Reputable market analysis tracking Montenegro property trends. | We cross-referenced Tivat yield estimates against broader Montenegro market data. We validated rental yield ranges for early 2026. |
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.
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