More people than ever are choosing to make their home in a country they weren’t born in. If you’ve been looking for a new place to put down roots in Europe, you might have considered Montenegro. It’s a pleasant little country on the Adriatic, close to Croatia and opposite the east coast of Italy. It might not be the first place you think of moving to, but it does have a lot to offer. 

In fact, if you’re looking for a home in a new country that is rich in culture, full of history and still affordable, you probably can’t do better than this. 

If you think Montenegro might be the place for you, you might be wondering, how to get a mortgage as expat in Montenegro. Here’s what you need to know.

Montenegro

Montenegro is a country in the Balkan region of Europe. It is located between Croatia, Bosnia, and Serbia. It has a mild Mediterranean climate, and the landscape goes from sandy beaches and rocky cliffs to mountainous regions in the interior. 

The country has a long history, and many of the cities and towns have fascinating architecture that is reminiscent of that past. Montenegro even has its own riviera, so if the idea of driving around coastal roads in a sports car with the wind in your hair appeals, this is a great place to do it! 

The lifestyle in Montenegro is very much like what you would expect in other Adriatic coastal countries. Think white sand beaches, ocean side dining and luxury yachts moored in the marina. Add blue water, blue skies, and plenty of sunshine, and you can see why so many people are thinking about making Montenegro their new home.

Because Montenegro is less of a tourist trap than some other places, the cost of living is also lower, so you can get the Mediterranean lifestyle without the big price tag. 

Mortgages in Montenegro

Whether you plan to move to Montenegro permanently or just want to purchase a European holiday home, chances are you’re wondering how to get a mortgage as an expat in Montenegro. The good news is that this is possible, and many foreigners can and do purchase property in Montenegro with bank financing. 

Mortgage Rates in Montenegro

Like most countries, mortgage rates in Montenegro are influenced by the government, and tied to interest rates set by the government. 

Currently, rates are at about 5.6%, but over the years since 2005, they have gone up to as much as 9.26%. So, if you are purchasing a property in Montenegro, make sure you consider what the interest rate might be in the next few years, and make sure you can afford it if the rates increase. 

How to Get a Mortgage as Expat in Montenegro ?

The good news for expats or people who are planning to make their home in Montenegro for part or all of the year is that local banks do offer mortgage financing to non-residents. The process is a little different to what you might normally expect, but this does mean that you can get a property of your own, rather than spending on rent. 

If you do only plan to live in Montenegro for part of the year, you can even use your property to make extra money on sites like Airbnb. So, this is  a great way to save or even earn money in Montenegro. 

Terms of the Loan in Montenegro

The terms of your mortgage will depend on the bank you choose to approach for financing, but most will expect certain things from you when you apply, such as:

• Full, comprehensive insurance on the property – this ensures that if something happens to your property, the bank can recoup their investment from your insurance company
• Some banks require bills of exchange from the loan beneficiary
• Some banks require up to 50% deposit, but this does vary by bank
• Loan amounts vary from lender to lender – some will offer a mortgage up to 400,000 Euros, while others will only go as high as 200,000 Euros
• Loan repayments are usually made monthly, and loan periods are usually between 240 and 300 months

Because the terms of mortgages for expats in Montenegro are so very different from one bank to the next, the best advice is usually to shop around. Speak to several different banks, and ask them about their interest rates, repayment period, required deposit and other information. Then narrow your search to find the one that offers the best deal. 

Required documents

As you would expect from a mortgage application, Montenegrin banks will want to have a fair amount of documentation when you apply for a loan to purchase property. Be prepared to offer some or all of the following:

• A fully completed loan application
• A copy of your passport (and the original so that the lender can confirm it’s a true copy of the original)
• Confirmation of employment and information about your earnings for the last three months if you are employed
• Bank statements for at least the last three months if you are self employed or a business owner
• A valid and credible assessment of the value of the property
• Insurance documentation for the property, which will be transferred to the bank when the mortgage application is completed
• Some banks will also require you to open an account at their bank to facilitate your payments

It’s important to remember that this list might not cover everything you need to apply. Different banks may have different requirements, so be sure to ask for a complete list before you start the application process. 

List of Banks in Montenegro

Montenegro has a variety of banks to choose from, but some of the best for mortgages for foreigners are: 

• Erste Bank Montenegro
• Lovćen Bank
• First Bank
• Crnogorska Komercijalna Banka
• Ziraat Bank Montenegro

You could also try to contact any other banks in Montenegro and ask them if they offer mortgages for expats and foreigners. More and more financial institutions are starting to service the financial needs of immigrants and expats, so you might very well find more that are willing to provide this kind of financing for your new home in Montenegro. 

How to Choose the Right Bank

Buying property is a major investment, even when it’s in your home country. When you’re buying property in another country, you have to be even more careful that you’re getting the best deal. 

Here are a few things you should do when choosing a bank to finance your Montenegrin mortgage:

• Research the bank – you want to work with banks that are well established
• Ask about repayment periods – some banks only offer expats 120 months to repay their mortgage, while others go as high as 300 months – so if you need a longer repayment period, that is a factor
• Ask about interest rates – most banks will offer you variable rates tied to the Montenegrin interest rate, but you want to start at the lowest possible rate
• Find out what deposit the bank requires – some require a higher percentage than others, so you need to consider what you can afford to pay upfront
• Find out if your chosen bank offers service in English – most will have some staff who can help you in English, but that’s not guaranteed! 

Choosing the right bank for a mortgage anywhere in the world is a process. Consider the institution, the deal they’re willing to offer you and all the fine print. It might be a combination of factors that decides who is the best one for you, but it’s definitely worth taking your time. 

Where to Buy Property in Montenegro

If you’ve decided to buy property in Montenegro, but you’re not sure where to start looking, there are a few places that might work:

• Kotor is a UNESCO world heritage site that is full of buildings that date back to the 12^th century – and its’ a major cruise ship port, so in the summer, this coastal town is bustling with visitors
• Perast is close to Kotor, but has more of a village feel – so if you like a slower pace of life, it could be the perfect choice
• Ljuta is where the wealthiest people in Montenegro have their homes – so if you have the budget for it, and you want to rub shoulders with the wealthy and well to do, this is where you can do it
• Donja Lastva is only five minutes away from Porto Montenegro, so you get all the buzz of the big city without the price tag! 
• Porto Montenegro is the city to live in if you like big cities! Homes are a bit more costly here, but you really are paying for the location and the lifestyle.

Probably one of the best things about Montenegro is that even though it’s been around a very long time (and has the medieval architecture to prove it!), there are still many places that are not overrun with tourists and expats. So, there are lots of towns and villages where you can find amazing deals on a huge variety of homes! 

How Much Does Property Cost in Montenegro?

Property in Montenegro is usually much cheaper than it would be if it was in Italy or even Croatia. 

That being said, if you choose to buy property in Porto Montenegro, you can expect to pay about 500,000 Euros for a home. In a more elite place like Donja Lastva, that might increase significantly. 

That having been said, in smaller towns and villages, there are still deals to be had, and if you are willing to put in some work to renovate a property, you can get some great properties for much less than you would pay elsewhere in Europe. 

Unlike much of Europe, there hasn’t been a property bubble in Montenegro either – so home prices are still reasonable and affordable for most people. The country is also very stable, and very focused on tourism and economic growth – so it’s a great place to put down some roots. 

Contact Us

Moving to another country is a big deal. Whether you are retiring, just looking for somewhere to work from home or want to start a business in a new country, there are many things to consider. 

The question of how to get mortgage as an expat in Montenegro is a major one, but fortunately, there are many banks that are willing to work with you. 

If you’re wondering about how to make your move to Montenegro a reality, and what your options are, whether it’s buying property or getting residency, our team can help. 

Smart Citizenship has been helping people to move around the world for years, and we have all the information you need. So, whatever your questions might be, contact us, and let’s figure out how we can make your dreams of a new home in Montenegro a reality.