Spain has been a dream destination for international real estate buyers for decades. However, when comparing real estate taxes between Spain and Montenegro, there are now clear differences in ancillary costs and investment conditions. However, current discussions about higher taxes for foreign buyers are causing uncertainty. Montenegro is pursuing a different course: low ancillary purchase costs, transparent processes and a growing market on the Adriatic. We show what this means in concrete terms for investors – with real figures and an honest assessment.
Spain: Increasing burdens for foreign buyers
In popular regions such as the Costa del Sol, the Balearic Islands, Barcelona and Valencia, high international buyer demand has caused prices to rise sharply. In response, politicians are discussing measures to impose greater burdens on foreign investors.
Among others, the following are under discussion:
- Higher taxes for buyers not resident in Spain
- Additional charges for second homes
- Stricter requirements in particularly popular coastal regions
The ongoing discussion is already causing uncertainty – especially among buyers who are investing for the long term or planning several properties.
Buying real estate in Spain: an overview of incidental purchase costs
Spain is already one of the countries with comparatively high ancillary purchase costs. Depending on the region and type of property, around 10-15% additional costs are added to the purchase price when buying a property.
Typical additional costs when buying real estate in Spain:
- Real estate transfer tax (ITP) or VAT for new buildings
- Notary and land registry costs
- Registration and administration fees
- Legal fees for legal review
For investors, this means that the actual capital investment is often significantly higher than the purchase price – with a noticeable impact on returns and liquidity planning.
Montenegro: Investor-friendly real estate market on the Adriatic
While Spain is discussing stricter regulation, Montenegro has developed into one of the most dynamic real estate markets in Europe. Spectacular coastline, historic old towns and modern resort projects meet investor-friendly conditions.
Particularly attractive for international buyers:
- Real estate transfer tax of usually only 3% on the purchase of existing properties
- Comparatively uncomplicated and fast purchase process
- Acquisition of property for foreigners generally possible
- Rising demand in regions such as Tivat, Luštica Bay and the Bay of Kotor
In practice, a real estate purchase in Montenegro can often be completed within a few weeks if the preparations are made properly.
Spain vs. Montenegro: A direct comparison of real estate taxes
A simplified cost comparison shows the extent to which ancillary purchase costs affect the total investment. Example: Purchase price € 300,000
Sample calculation for real estate purchases
| Scenario | Spain (typical) | Montenegro (typical) |
| Purchase price | 300.000 € | 300.000 € |
| Incidental purchase costs / taxes | approx. 10-15 % | approx. 3 % |
| Tax costs in € | 30.000 – 45.000 € | approx. 9.000 € |
| Total costs | up to € 345,000 | approx. 309,000 € |
The values serve as a rough guide and do not replace individual tax advice. For investors with larger portfolios, such differences can have a significant impact on equity requirements and returns.
Why Montenegro is becoming more attractive for international buyers
International projects such as Luštica Bay, Porto Montenegro and Portonovi have made Montenegro one of the most exciting real estate regions on the Adriatic.
Growing luxury market: Modern marina and resort concepts appeal to a clientele that often already pays significantly higher prices in Spain.
Strategic location & accessibility: Tivat International Airport is just a few minutes away from projects such as Luštica Bay or Porto Montenegro – ideal for own use and vacation rentals alike.
Current prices (2025):
- Coast (Budva / Bečići): 2,700-5,000 €/m² (+12-18 % YoY)
- Tivat / Luštica Bay: 4,000-9,000 €/m² (premium segment)
- Kotor – Dobrota: 2,200-3,800 €/m²
- Bar / Ulcinj: 1,600-2,800 €/m²
Compared to Spain, Italy or France, entry-level prices in many regions of Montenegro are still noticeably lower – while international demand is growing at the same time.
Luštica Bay: an example of modern real estate development
Luštica Bay is one of the best-known integrated coastal projects on the southern Adriatic – and exemplifies the development of the Montenegrin premium market.
The project includes:
- Marina Village with restaurants, cafés and boutiques
- Several private beaches and beach clubs
- Apartments, townhouses and villas in various price segments
- International golf course and leisure activities
- Hotels, wellness and service offers at resort level
For buyers, Luštica Bay combines the advantages of a professionally managed resort with genuine ownership of the property – interesting both for owner-occupation and for long-term investors.
Conclusion: Spain or Montenegro - which market is better?
Spain remains an established market with high demand, international recognition and a wide variety of regions. Spain can continue to make sense for owner-occupiers with a specific regional preference.
Montenegro is increasingly becoming an attractive alternative – with significantly lower ancillary purchase costs, a growing premium market and investor-friendly positioning. Luštica Bay and Tivat are prime examples of this development.
Anyone looking for a property on the Mediterranean and taking into account the tax framework and growth potential should seriously consider Montenegro in their analysis.
Frequently asked questions (FAQ): Spain vs. Montenegro Real Estate
How high are the incidental purchase costs in Spain for foreigners?
Depending on the region and property type, around 10-15% of the purchase price is typically incurred as additional costs when buying real estate in Spain. These include land transfer tax or VAT, notary, land registry and legal fees as well as regional taxes.
How high is the real estate transfer tax when buying property in Montenegro?
When buying existing properties, the real estate transfer tax in Montenegro is generally around 3% of the purchase price (progressive) – significantly lower than in most Western European countries.
Can foreigners buy real estate in Montenegro?
Yes, it is generally possible for foreign citizens to purchase property in Montenegro. The purchase process takes place via the notary and land register and can often be completed within a few weeks with proper preparation.
Which regions in Montenegro are particularly interesting for investors?
Coastal regions such as Tivat, Luštica Bay, Budva, Bečići and the Bay of Kotor are currently in particularly high demand. These regions combine tourist demand, international infrastructure and attractive real estate projects. Luštica Bay in particular is considered one of the largest integrated coastal projects on the Adriatic and is increasingly attracting international buyers.
Your advantage with PS Global Property
As your German-speaking contact, PS Global Property will guide you through the entire purchase process in Montenegro – from the initial consultation to the selection of suitable properties and coordination with local lawyers, notaries and project developers.
We work exclusively with inspected properties, transparent conditions and a clear understanding of what a reputable estate agent can – and cannot – offer. Our focus is on Luštica Bay, Tivat and the main coastal regions of Montenegro.
Are you interested in real estate in Montenegro?
Let us advise you without obligation – we will show you which properties are currently available in Luštica Bay, Tivat and other coastal regions.