Buying real estate in Montenegro?

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Buying a property in Tivat: a complete guide

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property investment Tivat

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

Thinking of investing in real estate in Tivat? You're not alone!

Many people are enchanted by Tivat's charm on the Adriatic coast and dream of having a beachfront villa or a modern apartment with sea views.

Would it be a profitable investment, though? Are property prices increasing in Tivat? What is the current trend? Should I buy property in Porto Montenegro or Seljanovo? What are the taxes? What rental yields should I expect?

We have the answers.

The Investropa team has done their homework and know this market well. Actually, we've put all our findings together in a pack. Get it now.

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

How is the property market in Tivat?

Is the property market showing growth or decline? Let's analyze the latest data and statistics.

Property types

In Tivat, you can find a variety of properties for sale, including apartments, houses, villas, and land.

Apartments range from cozy studios to spacious multi-bedroom options, often located in modern complexes with amenities like pools and gyms. Houses and villas offer more space and privacy, some with sea views and gardens.

If you're looking to build your dream home, land parcels are available for purchase, allowing you to create a custom property.

Whether you're a first-time buyer, a family, or an investor, Tivat offers a diverse range of property types to choose from.

Buying vs Renting

(If you're keeping it for yourself and not renting it)

Whether you've already made Tivat your home or are contemplating it for the future, you might be weighing the advantages of buying versus renting in this town.

Usually, buying is better than renting in Tivat due to its rapidly growing real estate market and its strong rental yields.

In contrast, for those who seek flexibility, renting is the recommended option.

Housing prices in Tivat

On average, according to the updated data from Statistical Office of Montenegro, purchasing a property in Tivat would cost you around $5,700 per square meter.

Naturally, property prices are quite spread out. A luxury apartment in Porto Montenegro will likely have a higher price per square meter than a townhouse. We actually give you a more detailed breakdown in our pack for buying property in Tivat and in Montenegro.

To put things in perspective, it is 3.3 times less than the property prices in the center of New York.

However, housing prices in Tivat are higher (46%) than in

The most expensive neighbourhoods in Tivat are probably Pržno and Donja Lastva, while the cheapest areas are likely Kaliman and Kamenari.

Tivat 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.

It is something to have in mind when wondering whether it's a good investment to buy a property in Tivat.

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 intend to invest in real estate in Tivat it's a good thing because, as the economy grows, people's incomes (usually) increase, motivating them to invest in real estate, which causes a rise in property demand and prices.

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

This is a strong positive signal: housing prices in Tivat might become more expensive in 2024 and later on.

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 Tivat

It is difficult to buy property in Tivat due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Tivat and in Montenegro.

Buying process

In the pack of documents we have built, we've covered everything about buying a property, from the contacts you'll need to the taxes that need to be paid, and even where to look for available properties.

Now, we're presenting a simpler version to make it easier for you to understand and follow along.

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

  1. Research the Tivat property market and its legal regulations.
  2. Engage a local real estate agent familiar with Tivat's property laws.
  3. Choose a property and negotiate the price with the seller.
  4. Sign a Letter of Intent and pay a deposit to secure the property.
  5. Hire a lawyer experienced in Tivat property transactions to conduct due diligence.
  6. Review the sales contract, "Predugovor," with your lawyer to ensure compliance with local laws.
  7. Obtain approval from the Ministry of Sustainable Development and Tourism for foreign buyers.
  8. Pay the remaining balance and applicable property transfer taxes.
  9. Transfer ownership at the Bureau of Cadastre by registering the sale and signing the "Ugovor o Kupoprodaji" (Sale Purchase Agreement).
  10. Register the property at the local tax office and obtain a "Poreski Identifikacioni Broj" (Tax Identification Number).
  11. If you plan to reside in Tivat, apply for a residency permit at the Police Department in Tivat.
  12. Celebrate ownership and enjoy your new property in beautiful Tivat, Montenegro.

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 Tivat

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buying property in Tivat

Where to find a property

Looking for properties in Tivat? Explore these websites:

  • - 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.

Which properties for which budget?

As mentioned before, the average price per sqm in Tivat is $5,700. If you're considering a one-bedroom property covering 60 square meters, it would be around $342,000, while a two-bedroom with 85 square meters would be approximately $485,000.

However, prices will change based on both the property itself and its location.

Prices are higher in the fancier parts of Tivat. Imagine a house in Porto Montenegro with a potential price of $1,080,000, while an apartment in Donja Lastva might be valued at around $610,000.

Some locations are not as expensive. You can find a residence in Radovici for $560,000 or a residence in Lepetane that's only $360,000.

We give a more detailed breakdown in our full pack for buying property in Montenegro.

Common pitfalls

Here are the main pitfalls when buying a property in Tivat, Montenegro:

  • Foreign ownership restrictions: Ensure eligibility for non-residents to buy certain properties.
  • Coastal zone regulations: Comply with strict rules for properties near the Adriatic Sea.
  • Landmines: Investigate the property's history due to past conflicts in the region.
  • Permit delays: Factor in bureaucratic processes for construction and renovation permits.
  • Unstable property market: Assess potential fluctuations due to Montenegro's emerging economy.
  • High tourist season costs: Be aware of increased expenses during peak travel times.
  • Infrastructure limitations: Check for issues with water and electricity supply in certain areas.
  • Hidden renovation expenses: Inspect older properties for potential structural and restoration needs.

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 Tivat

Living in Tivat offers a unique combination of beautiful scenery, a relaxed Mediterranean lifestyle, and modern amenities, making it an ideal location for those looking to buy property.

Cost of living

The cost of living in Tivat is generally low compared to other cities in Montenegro. Prices for basic goods like food and transportation are usually very affordable, and real estate is relatively inexpensive.

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

  • Rent for a one-bedroom apartment in the city center: $550/month.
  • Monthly public transportation pass: $20.
  • Dinner for two at a local restaurant: $45.
  • 1 liter of gasoline: $1.15.
  • Utilities (electricity, water, cooling) for an 85m² apartment: $95/month.
  • Gym membership at a local fitness center: $35/month.
  • Ticket to a movie at a cinema: $7.
  • Cup of locally brewed coffee at a café: $2.50.


We want to show information in a way that is easy to understand and pleasant to read. So, we have made a summary table that lists the different neighborhoods in Tivat. For yields, prices and rents, check our property pack.

Neighborhood Description Strengths Weaknesses

Donja Lastva

Donja Lastva is a picturesque coastal neighborhood with charming old buildings and a peaceful atmosphere.

Beautiful coastal views, tranquil environment.

Limited amenities, may get crowded during tourist season.


Centar is the heart of Tivat, offering a vibrant mix of shops, restaurants, and cultural attractions.

Convenient location, diverse entertainment options.

Potentially noisy and busy, higher living costs.


Kavač is a residential area known for its modern apartments and proximity to Porto Montenegro.

Close to Porto Montenegro, modern housing options.

Less green spaces, traffic congestion.


Radovići is a charming village with a laid-back lifestyle and access to lovely beaches.

Relaxed atmosphere, beautiful beaches nearby.

Limited public transportation, fewer job opportunities.

Life in Tivat

Tivat is a municipality in Montenegro located in the Bay of Kotor. It is a popular tourist destination and has a growing economy based on tourism, real estate, and the services industry.

What expats usually like the most in Tivat is the Mediterranean climate, with its warm, sunny summers and mild winters. Additionally, they appreciate the abundance of outdoor activities such as swimming, sailing, and hiking in the nearby mountains.

Access to healthcare in Tivat is generally good, with a wide range of medical services available.

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invest real estate in Tivat

Renting out in Tivat

If your intention is to buy a property not for personal use, but to rent it out and create income, then this section is for you.


Tenant Profiles in Tivat

If you decide to buy and rent out to long-term tenants, you should target young professionals, families and retirees looking for a quiet, laid-back lifestyle. Tivat also attracts tourists, who are looking for short-term rental options, such as apartments and villas.

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 Tivat Center

Young professionals, expats

Urban living, amenities

$600 - $1200

Studio in Porto Montenegro

Yacht owners, luxury seekers

Marina views, upscale living

$1000 - $2000

House in Donja Lastva

Families, retirees

Quiet neighborhood, sea proximity

$800 - $1500

Apartment in Seljanovo

Beach lovers, young couples

Nearby beaches, relaxed atmosphere

$600 - $1200

Condo in Lepetane

Commute to Kotor/Tivat

Convenient location, ferry access

$500 - $1000

Apartment in Radovici

Families, nature enthusiasts

Rural charm, outdoor space

$600 - $1200

Villa in Krasici

Luxury travelers, groups

Private villa, coastal views

$1500 - $3000

Rental yields

As of today, rental yields in Tivat are within the 3-4% range. It's low. A good rental yield is typically considered to be around 7% or higher (you might know it already).

Tivat is a popular tourist destination, so properties located in central areas with access to amenities such as bars, restaurants, and beaches tend to offer the best rental yields. Additionally, properties with sea views and luxury features, such as pools and spas, can also provide higher rental yields due to the high demand for such features in the area.

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 Tivat are taxed at 15%, which is not much.


You could also decide to rent short-term to tourists looking to explore the nearby resorts of Kotor and Budva, or sailors looking to take advantage of the marinas in the area. Additionally, Tivat is close to the airport, so short-term rentals could be attractive to business travelers.

If you decide to go with that option, look for properties in the Central Tivat area, particularly in the Krasici and Donja Lastva neighborhoods, which are close to local attractions and amenities. Additionally, properties in the Prcanj and Radovici areas are also popular among short-term renters.

Currently, there are approximately 1,455 active Airbnb listings in Tivat, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $66.

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 Tivat can make around $700 per month. Also, the average occupancy rate is estimated at 47%.

Is it worth buying real estate in Tivat then?

Investing in property in Tivat, Montenegro, can indeed be a smart move, but it's not a one-size-fits-all decision. If you're looking for an investment opportunity with the potential for appreciation in value, Tivat shows promise.

With a growing economy and rising GDP per capita, the town is on an upward trajectory. Plus, the relatively low cost of living compared to other cities in Montenegro can make it attractive to renters, offering opportunities for a steady rental income stream.

Additionally, if you plan to use the property for personal enjoyment, Tivat's Mediterranean climate and beautiful surroundings provide an excellent quality of life.

However, there are some caveats. Be mindful of foreign ownership restrictions and coastal zone regulations that may impact your property plans. Market volatility is a consideration in Montenegro's emerging economy, so if you're risk-averse, it might not be the ideal time to invest.

Rental yields are currently on the lower side, around 3-4%, which might not meet your income expectations. Additionally, navigating bureaucratic processes and potential infrastructure limitations can be cumbersome.

In conclusion, buying property in Tivat can be a lucrative venture if you're willing to navigate the challenges and keep a long-term perspective. It offers the potential for growth and rental income, but it's not without its risks and complexities. Careful research and understanding of your goals are essential before taking the plunge into Tivat's real estate market.

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.

real estate market Tivat

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.