The New French Riviera – Montenegro enters a new era with a new coalition gov, EU membership by 2025, and foreign investors muscling for coastal land.
Portonovi Sky Villa
As Montenegro marches towards EU membership, foreign and EU-funded investment in the country has flowed. Almost EUR3 billion has been invested in the ten most significant coastal developments, giving this part of Montenegro the moniker “the next French Riviera.” This has caught the attention of high-net-worth individuals attracted to the country’s low corporate tax rate. According to a Knight Frank Wealth Report, the number of UHNWIs in Montenegro is expected to increase by 36.1 percent by 2024.
Property transfer, inheritance, and estate taxes are highly competitive at 3 percent. This transfer tax compares very favorably to many other parts of Europe, like Portugal, where the rate is 6.5 percent, and up to 10 percent in Spain. Overall, tax regimes in the country are amongst the most competitive in Europe. Corporate and income tax sits at just 9%, with real estate transactions at just 3%. VAT is set at 21% and is refundable on most real estate transactions. The nation also has Double Taxation Treaties with over 40 other countries, including the UK, Switzerland, and China.
Since gaining independence 15 years ago, big foreign investors, e.g., Qatari Diar and Azerbaijan Investment Group, have banked on this tiny country to fulfill their overseas ambitions. They’ve created 5-star coastal resorts like Porto Montenegro & Lustica Bay to elevate the lifestyle offering and attract savvy investors who would have considered Cannes, St Tropez, and Mykonos (some considered over-saturated and too overpriced). It shows no sign of waning, with big names, including The Four Seasons, Banyan Tree, Ritz Carlton, The Aman, Chedi, and Regent Hotel Group.
As the Adriatic Riviera’s most desirable waterfront community, Portonovi offers the perfect investment for anyone looking to own a part of this fast-growing nation. With a prime location on Boka Bay, the village is perfectly positioned to benefit from Montenegro’s vibrant tourism-based economy. In recent years, the region has seen significant infrastructure investment from the Montenegrin government and overseas investors. It is now ready to take its place as Europe’s leading luxury destination.