What rental yields can I expect from property in Montenegro?

Montenegro offers competitive rental yields relative to comparable Mediterranean markets. Long-term rental yields in prime coastal locations such as Kotor and Tivat typically range from four point five to six point five percent annually. Short-term holiday rental yields in well-located coastal properties can reach eight to twelve percent, driven by Montenegro's growing international tourism arrivals and the country's limited supply of quality rental stock. Capital appreciation has been consistent in prime locations, supported by increasing foreign direct investment, with real estate comprising approximately fifty-four percent of FDI inflows in the first quarter of 2025. Rental income is subject to a flat fifteen percent tax in Montenegro. Returns vary meaningfully by property type, location and management quality, and Barok Estates provides clients with detailed yield analysis specific to each acquisition.