How do Georgia and Montenegro compare line by line?
Both countries sell seaside flats to foreigners and tie a residence permit to property worth about 150,000 in their pricing currency. Most other rules differ. The Montenegrin source is named on each row; the Georgian figures come from our own guides.
| Criterion | Georgia | Montenegro | Source, Montenegro |
|---|---|---|---|
| New flats, per m² | Batumi USD 1,960, turnkey (June 2026); Tbilisi USD 1,432, white frame (August 2026) | Coast EUR 2,838, Podgorica EUR 2,510 (second quarter of 2026, VAT included) | Monstat |
| Closed to foreigners | Agricultural land | Farmland, forest, a 1 km land-border strip, islands | Law on Property Relations, Art. 415 |
| Form of sale | Written contract and registry entry; notary optional | Notarial deed required | Law on Notaries, Art. 52 |
| Tax on buying | None; registration GEL 150 | Resale: 3% up to EUR 150,000, higher bands above; new build: 21% VAT in the price instead | Transfer Tax Law, Arts 6 and 11 |
| Yearly property tax | None on buildings unless family income exceeded GEL 100,000 the year before | Second homes 0.3% to 1.5% of market value | Property Tax Law, Art. 10 |
| Residence floor | Above USD 150,000 | Transfer-tax base of at least EUR 150,000 (USD 168,105) | Law on Foreigners, Art. 56 |
| Permanent residence | After 10 years, or 5 on the investment permit | After 5 years | Law on Foreigners, Art. 86 |
| Tax on rent | 5% of gross residential rent | 15% after costs | Sl. list CG 160/25; PwC |
| Tax on a sale gain | None on a home held more than 2 years; 5% within 2 years | 15%; only a sole main home exempt | PwC |
| Gross yield | Batumi 7.1% | Budva 4.4% | Galt & Taggart, June 2026 |
| Currency | Floating lari; flats priced in dollars | Euro | Central Bank of Montenegro |
| EU path | Accession talks suspended in 2024 | 21 of 33 chapters provisionally closed | European Western Balkans |
What do EUR 150,000 to 300,000 buy in each country?
Montenegro's figures are Monstat's contract prices for new flats, VAT included; Georgia's are Galt & Taggart averages.
| Budget | Montenegro coast | Batumi, turnkey | Tbilisi, white frame | Residence reached |
|---|---|---|---|---|
| EUR 150,000 (USD 168,105) | about 53 m² | about 86 m² | about 117 m² | Both 1-year routes, if the value clears each floor |
| EUR 250,000 (USD 280,175) | about 88 m² | about 143 m² | about 196 m² | Both 1-year routes |
| EUR 300,000 (USD 336,210) | about 106 m² | about 172 m² | about 235 m² | Georgia also opens the 5-year investment permit |
Per m², the Montenegrin coast costs about 62% more than Batumi turnkey. Monstat's coastal region blends Ulcinj and Bar with Budva, Kotor and Tivat, and its average moved from EUR 2,412 (2025) to EUR 2,838, so read it as a range of about EUR 2,400 to 2,850. A Tbilisi white-frame flat still needs finishing.
What may a foreign buyer own, and where?
Montenegro's Law on Property Relations lists what a foreign person may not own (Article 415): agricultural land, forests, natural resources, major cultural monuments, real estate within one kilometre of the land border, islands and security zones. A foreign individual may still acquire up to 5,000 m² of farmland or forest when a house standing on it is part of the same sale. Flats, houses and building land elsewhere are open. Buyers from EU states are to get equal terms with Montenegrins, but only from the day of accession (Articles 415(4) and 422a).
Some advisers suggest holding land through a Montenegrin company; we did not find that route confirmed in the law, so ask a lawyer. In Georgia, a foreigner buys as a citizen does, and only agricultural land is closed.
Transfer tax or VAT: what does completing a purchase cost?
Every Montenegrin property sale is made as a notarial deed by a notary of the area where the property lies; otherwise it has no legal effect (Law on Notaries, Articles 9 and 52). The buyer pays transfer tax, filing a return within 15 days (Transfer Tax Law, Articles 7 and 16), and then registers in the cadastre. Since 1 January 2024 the tax is progressive, each band applying only to the part of the price inside it:
| Price | Tax | Share |
|---|---|---|
| EUR 150,000 | EUR 4,500 | 3.0% |
| EUR 250,000 | EUR 9,500 | 3.8% |
| EUR 500,000 | EUR 22,000 | 4.4% |
Above EUR 500,000 the rate on the excess is 6%. The base is market value, which the tax authority may reassess if the price looks low (Article 10). A new building bought from a VAT-registered developer is outside the tax (Article 6): 21% VAT is already in the price, and since 1 April 2026 the same applies to building land sold with VAT. We could not confirm the notary or cadastre fees, so ask for written quotes. Georgia charges no transfer tax and GEL 150 for registration; see our guide to buying costs in Georgia.
What does owning cost each year?
Montenegrin municipalities set property tax within a national band of 0.25% to 1% of market value (Property Tax Law, Article 9). A second home pays 0.3% to 1.5% (Article 10), and any flat that is not the owner's registered domicile, or that a company owns, counts as one (Article 11). The value comes from a formula, not your price: Monstat's average new-flat price per m² times area and location and quality coefficients, less 1% a year for age. Tivat, for example, charges 0.56% on a second home of an owner not domiciled there: about EUR 1,120 a year on an assessed EUR 200,000 (our calculation). Other coastal rates are not confirmed.
In Georgia, Law No 1874 of 30 September 2026 exempts an individual's buildings unless family income in the previous year exceeded GEL 100,000; above that, Tbilisi and Batumi charge 0.8%. How a non-resident's family income is counted is a question for an accountant.
Residence through property: EUR 150,000 against USD 150,000
Since 17 January 2026, Article 56 of Montenegro's Law on Foreigners (Sl. list CG 3/2026) gives temporary residence to an owner of at least half of a flat, house, villa or business premises, proving value with the local tax authority's transfer-tax decision on a base of at least EUR 150,000. The permit lasts up to one year and is renewed in person with proof that taxes were paid while it ran (Article 64). Citizens of the EU, Iceland, Liechtenstein, Norway and Switzerland are exempt from the floor.
Check this before buying new. A first sale by a VAT-registered developer carries no transfer tax, so the buyer gets no transfer-tax decision, and the law does not say what replaces it. We found no official answer. If residence is the reason to buy off-plan or new in Montenegro, have a Montenegrin lawyer confirm in writing how the value will be proved before you sign.
Georgia's floor is a market value above USD 150,000, about EUR 133,845, set by an accredited assessor; the 1-year permit is renewable yearly for as long as the owner holds the flat, and above USD 300,000 a 5-year investment permit is available. See our guide to residence by property, and the country comparison tool for other countries' routes.
How long to permanent residence and citizenship?
Montenegro issues permanent residence after five years of continuous stay on approved temporary residence, with absences of up to ten months in total or one of up to six months (Law on Foreigners, Article 86). Article 88 adds means, health insurance, housing, basic Montenegrin and, since January 2026, proof of taxes paid. One agency blog claims, citing official guidance it does not identify, that years on a property permit do not count; Article 86 contains no such exclusion, and we could not confirm the practice. Naturalisation takes ten years and, as a rule, giving up your other citizenship (Citizenship Law, Article 8, read in a text current to 2021, so only partly confirmed). Citizenship by investment closed to applications after 31 December 2022.
In Georgia, the clock to a permanent permit is ten years on temporary permits (unconfirmed for property-permit years), or five on the investment permit; citizenship needs ten years plus an exam in language, history and law.
What does letting to tourists in Montenegro involve?
A foreign owner may let to tourists: the Law on Tourism and Hospitality allows a natural person, "domaće ili strano", who owns the flat to host up to 10 rooms and 20 beds (Article 100). Letting may start only after the municipality enters the unit in the Central Tourist Register; the owner applies 8 days ahead and the municipality decides within 8 days (Articles 77 and 78). The host then keeps a guest book, reports guests monthly and insures them against accidents (Article 101).
Each municipality sets a tourist tax of EUR 0.10 to EUR 1.00 per person per night (Law on Residence Tax, Article 7); children under 12 are exempt. Herceg Novi and Tivat charge EUR 0.90; Budva and Kotor are not confirmed. For Georgia's treatment of nightly letting, see our guide to rental income tax.
Income tax on rent: 15% after costs or 5% of the gross
From 1 January 2026, Montenegro taxes rent at 15% (Sl. list CG 160/25; PwC). Without documented costs, a standard 30% is deducted, so the tax is about 10.5% of gross rent (our calculation); letting for tourism gets standard costs of 50% or 70%, about 7.5% or 4.5%, which case gets which is not confirmed. A municipal surtax of 13%, or 15% in Podgorica and Cetinje, is added to the tax for those domiciled there; whether it reaches a non-resident is not confirmed. Georgia taxes residential rent at 5% of the gross, without deductions. On EUR 9,000 of yearly rent, that is EUR 945 against EUR 450 (our calculation).
Prices, tourism and yields: how do the two markets move?
Montenegrin new-flat prices rose 16.2% in the year to the second quarter of 2026, to EUR 2,557 per m² nationally, and 19.1% in Podgorica (our calculation from Monstat). Batumi's turnkey average rose 9.8% in the year to June 2026; our price index and Batumi market review track the Georgian side. Montenegro publishes no foreign-buyer share; its central bank's preliminary data put foreign direct investment in real estate at EUR 437.93 million in January to November 2025, a money flow, not a buyer count.
Montenegro registered about 2.73 million tourist arrivals in 2025 (our sum of Monstat releases for hotel-type and private lodging). The season is sharp: July and August held 40.5% of 2025 nights in hotel-type lodging. Its arrivals in January to September 2026 were 3.9% above a year earlier (our sums). On rent, Galt & Taggart's June 2026 peer table, built from Airdna and Numbeo data with one method, puts gross yields at 4.4% in Budva and 7.1% in Batumi. Tbilisi rents are in our rent index.
Selling later: who keeps more of the gain?
Montenegro taxes the gain on a sale at 15%, with no exemption for holding time in PwC's summary; only the owner's sole main home, transfers between spouses and gifts to a spouse or children escape it. Your buyer also pays transfer tax on a resale. In Georgia, a home held more than two years is sold free of income tax, a gain within two years is taxed at 5%, and the buyer pays no transfer tax.
The euro and the EU path against the dollar and a paused path
The euro has been Montenegro's legal tender since 2002, without euro-area membership or a monetary policy of its own, as its central bank explains. Euro earners face no currency gap; dollar earners still do. Georgian flats are priced in dollars while the lari floats.
Montenegro has been an EU candidate since 2010 and negotiating since 2012; as of 12 October 2026, 21 of its 33 chapters were provisionally closed. The government's 2028 entry target is not an EU decision, and every member state must ratify the treaty. Georgia's accession talks were suspended in 2024, as our Georgia and Dubai comparison notes.
Which country fits which priority?
| If your priority is | Points to | Because |
|---|---|---|
| More floor space per euro | Georgia | Batumi turnkey is about 38% cheaper per m² than the Montenegrin coast |
| Low costs to buy, hold and sell | Georgia | No transfer tax, usually no property tax, no tax on a home held over 2 years |
| Permanent residence within 5 years from a 1-year permit | Montenegro | Five years, with basic language and tax conditions |
| Euro pricing and an advancing EU process | Montenegro | Euro since 2002; 21 of 33 chapters provisionally closed |
| Higher gross yield | Georgia | Batumi 7.1% against Budva 4.4% on one method |
For a third option on the same budget, see Georgia or Turkiye.
Risks and exceptions
- Buying new in Montenegro for residence without legal advice. The transfer-tax decision used as proof of value does not exist for a VAT sale.
- Reading the coastal average as a Budva price. Monstat's region mixes six municipalities.
- Forgetting the yearly bill. A Montenegrin flat that is not your registered domicile pays the second-home rate.
- Counting on a 2028 EU entry. It is a government target, not a date.
Frequently asked questions
Is Montenegro more expensive than Georgia?
Per m², yes: EUR 2,838 on the Montenegrin coast in the second quarter of 2026, against about EUR 1,749 for Batumi turnkey.
Can a foreigner buy a flat in Montenegro?
Yes; the bans cover farmland, forest, islands and a 1 km land-border strip, not flats or houses.
Does a Montenegrin flat give residence?
Yes, if the transfer-tax base is at least EUR 150,000; the permit lasts up to one year and is renewable. Buyers of new flats with VAT should confirm with a lawyer how they prove the value.
Which country taxes rent less?
Georgia: 5% of gross residential rent, against 15% after costs in Montenegro, about 10.5% of gross with the standard deduction.
Sources
- Prices of new flats, second quarter 2026 (20 August 2026) and 2025 (26 February 2026), Monstat (accessed 3 November 2026)
- Tourist arrivals and nights: private accommodation 2025 (5 March 2026) and collective accommodation, September 2026 (29 October 2026) with the monthly releases for 2025, Monstat (accessed 3 November 2026)
- Law on Real Estate Transfer Tax, Sl. list CG 36/13, amended by 28/23 (10 March 2023) and 33/26 (10 March 2026), Official Gazette of Montenegro (accessed 3 November 2026)
- Law on Property Tax, Sl. list CG 25/19, as amended, and the Tivat property tax decision (20 December 2019, as amended), Official Gazette of Montenegro (accessed 3 November 2026)
- Law amending the Law on Foreigners, Sl. list CG 3/2026 (9 January 2026), Official Gazette of Montenegro, and the consolidated Law on Foreigners, Employment Agency of Montenegro (accessed 3 November 2026)
- Law on Property Relations, Sl. list CG 19/09, amended by 29/25 (21 March 2025), Official Gazette of Montenegro (accessed 3 November 2026)
- Amendment to the Law on Notaries, Sl. list CG 49/08, Official Gazette of Montenegro, 15 August 2008 (accessed 3 November 2026)
- Amendment to the Personal Income Tax Law, Sl. list CG 160/25, Official Gazette of Montenegro, 30 December 2025 (accessed 3 November 2026)
- Montenegro tax summaries: income determination, taxes on personal income and other taxes, PwC, reviewed 7 August 2026 (accessed 3 November 2026)
- Law on Tourism and Hospitality, Sl. list CG 2/18, and the Law on Residence Tax as amended by 48/15, with the Tivat and Herceg Novi decisions, Official Gazette of Montenegro (accessed 3 November 2026)
- Law on Montenegrin Citizenship, Paragraf, and the investment programme decision, Government of Montenegro (accessed 3 November 2026)
- Montenegro, European Commission, and Kos: The finish line for Montenegro is within reach, European Western Balkans, 13 October 2026 (accessed 3 November 2026)
- Euroisation, Central Bank of Montenegro, and CBCG: Outflow amounts to EUR 413.18 million, MINA (accessed 3 November 2026)
- Montenegro property residency rules 2026, NT Realty, agency blog (accessed 3 November 2026)
- Batumi Residential Real Estate, 2Q26 overview, Galt & Taggart, 14 August 2026 (accessed 3 November 2026)
- Tbilisi Residential Real Estate, August 2026, Galt & Taggart, 23 October 2026 (accessed 2 November 2026)
- Law on the Legal Status of Aliens and Stateless Persons and Tax Code of Georgia, Legislative Herald of Georgia (accessed 18 October 2026)
- Official exchange rates, National Bank of Georgia, 3 November 2026 (accessed 3 November 2026)
Change log
- - Comparison published from the Official Gazette of Montenegro, Monstat, PwC and Georgian law and market data.