In this week’s digest:
- How Kotor, Montenegro Became the Envy of Venice
- Take a Video Tour of Europe’s New Riviera
- My Scouts Share Their on-the-Ground Insights from Kotor
- Your Questions Answered on Visas and the Low Taxes in Montenegro
Throughout history, wealth has naturally flowed to certain destinations around the world…
Typically it’s because they sit in strategic locations. Sometimes it’s because they have stunning natural beauty, making them inherently desirable. In a select few places, it’s because they have both.
The Bay of Kotor in Montenegro is one of the those select few places. (Learn more about why the wealthy love Kotor here.)
The lifestyle in Kotor, Montenegro is enviable and foreigners will all tell you how safe and relaxed they feel there.
Kotor Bay sits in a privileged position at the center of the Adriatic Sea across from Italy, with Croatia to the north and Albania and Greece to the south. Plus, it’s sheltered.
The Bay of Kotor is in fact made up of a series of interconnected bays, providing a perfect natural harbor.
With these geographic advantages, Kotor has long been an important and wealthy trading hub…
In the 14th century, its wealth rivaled Ragusa to the north (a powerful republic centered in the Croatian city of Dubrovnik). Kotor became so wealthy that it attracted the envy of the Republic of Venice.
Back then, Venice was one of Europe’s great trade and naval powers. It wanted to bring Kotor—known to the Venetians by its Latin name, Cattaro—into its orbit.
In 1420, Kotor agreed to join Venice in exchange for military protection from the Ottoman Empire, which was also eyeing Kotor.
Kotor would remain part of the Venetian Republic for almost four centuries. This explains why resplendent Venetian architecture is found across the bay today.
The point being, Kotor has inherent advantages that throughout history have drawn the attentions of the wealthy and powerful.
Now money is flooding back in again…
Since Montenegro voted for independence in 2006, the ultra-rich have been flocking back here.
They’re coming for the same reasons that first brought the wealthy Venetians centuries before—the sheltered bay and the natural beauty.
Except today, it’s not trade ships that sit in the bay, it’s superyachts.
And it’s not Venetian storehouses that sit alongside the towering city walls, it’s lavish modern resorts and million-dollar condos.
Kotor, once a jewel in the crown of Venice’s vast republic, is entering a new era of prosperity. It’s been christened Europe’s new Riviera and the “new Monaco.”
And we can catch the wave…
Yesterday, I unveiled my special briefing on Montenegro and the incredible new deal I’ve found there for members of my Real Estate Trend Alert group.
Click here to begin reading this briefing now.
This is an incredible and rare opportunity…
Kotor Old Town is renowned for its Venetian architecture and is considered one of the best preserved medieval towns on the Adriatic Sea.
With this deal, the location is superb… in easy reach of Kotor old town, the swanky marinas of Porto Montenegro, Porto Novi…the airport of Tivat…the historic towns around the bay with their Venetian architecture…and all the incredible leisure activities you or your renters could want…
Plus, the amenities are outstanding including a state-of-the-art gym, infinity pool, fire pit with views of the bay, yoga/Pilates studio, restaurant, and much more.
Yet, the pricing for members of my Real Estate Trend Alert group is unbelievable.
That’s why I expect gains of €201,643 five years after delivery…
The Bay of Kotor is in fact a series of interconnected bays. This protected natural harbor has been attracting the wealthy and powerful for many centuries.
It’s taken years to find this opportunity…
Montenegro in general, and Kotor in particular, is my first new macro recommendation in Europe for a decade. The last time I made a recommendation like this was in the town of Lagos in Portugal back in the mid-2010s, before its popularity exploded and prices skyrocketed. (Read about that here.)
And in truth, this could be our last deal in Kotor too!
My bar is high for what makes the perfect RETA deal. For something to reach RETA-grade, I have to see a clear path to double our money invested within five years.
Finding a deal like this is hugely challenging in this billionaires’ playground. And it’s only going to become more so.
Around the bay, scarcity is acute. That’s a big part of the appeal, but it’s a challenge too. Geography is a big barrier. In the Bay of Kotor nature and time conspired to create a masterpiece…not to make it easy for builders. Dramatic mountains sweep down to the sea, softened by the green of forests.
Much of the prime land has been snapped up by the big-name luxury brands for all-inclusive resorts or lavish boutique hotels. After all, this is a new Riviera, a “Monaco of the Adriatic.”
There’s nothing like our deal in Kotor, nothing at the insanely low RETA-only prices…
- We have stunning two-bed condos from a RETA-only €348,356. I expect these will be worth €550,000 five years after delivery. That’s a gain of €201,643.
- We also have stylish one-bed pied-à-terre apartments with sea views from a crazy, RETA-only €193,013. I expect these will be worth €304,735 five years after delivery. That’s a gain of €111,722.
- And finally, we have two extremely large and luxurious three-bed condos at RETA-only prices of €636,258 and €667,652.
- All these condos are fabulous RETA-grade deals. (Full details in my briefing here.)
This is a developer’s render of Royal Town Kotor, where RETA members can own pied-à-terre sea-view apartments from a RETA-only €193,013 and two-bed condos from a RETA-only €348,356. That’s incredible pricing! (Renders give us a great idea what’s planned but shouldn’t be considered final.)
To underline what an incredible deal this is, here’s what the developer has planned after my RETA group gets in first at our exclusive, off-market pricing…
- Within 10 weeks of the RETA launch the developer’s planning a 15% increase on the RETA pricing.
- Within a year of the RETA launch it’s a 30% increase on the RETA prices.
- All told over the build period the developer plans a 70% increase on the RETA pricing.
That would mean the two-bed condos RETA members can snap up for €348,356 will be listed at €592,205 according to the developer’s planned price increases…upon delivery!
If the developer goes ahead with his price increases it would mean the stylish one-bed pied-à-terre apartments with sea views we get from a RETA-only €193,013 will be priced at €328,122.
That shows how conservative my predictions are! And it shows the power of my RETA group to negotiate incredible deals.
For all the details, click here to begin reading my full briefing on this opportunity now.
Take a Video Tour of Europe’s New Riviera
In addition to the briefing, I’ve also been preparing video resources…
As I say, it’s taken years of on-the-ground scouting by me and my team to find this opportunity. In fact, in just the past few months, several members of my team had boots on the ground here. One of those was our RETA photographer and videographer Alan Kennedy.
Alan spent a few weeks exploring the Bay of Kotor with his cameras, and I asked him to put together an overview video so you could see for yourself why it’s so special…and why all my scouts were blown away by this incredible destination.
Check out this overview video of Kotor shot by our RETA photographer/videographer Alan Kennedy when he had boots on the ground there just a few months ago. Click this private link to view.
On-the-Ground Insights from Kotor
Recently, I also sat down with two of my scouts so you could hear directly from them about why Kotor has so impressed us.
Margaret and Eoin are two of my most senior scouts. Margeret’s my original scout, in fact. She’s been with me since the very beginning of RETA. Eoin is a former editorial director at International Living and has scouted for real estate opportunities as far afield as Vanuatu in the South Pacific, Southeast Asia, Europe, and Latin America.
In just the past few months, they both had boots on the ground in Kotor, following up on my prior scouting. Here’s what they thought…
Check out this overview video of Kotor shot by our RETA photographer/videographer Alan Kennedy when he had boots on the ground there just a few months ago. Click this private link to view.
Your Questions Answered on Visas and Taxes in Montenegro
We’ve also been getting questions from Your Overseas Dream Home readers and RETA members about Montenegro and the deal. Have a question or comment? Share it here.
I know there have been a number of questions with regard to taxes and visas in Montenegro. So I asked Ted Baumann to weigh in…
Ted is International Living’s Global Diversification Expert. He makes it his business to stay informed about visa and tax policies in the world’s top expat havens. He shared this about the visa and tax situations in Montenegro today…
Ted says: Here are the ways you can stay in Montenegro, from a short visit to permanent residency…
Montenegro’s short-term stay visa allows many non-EU citizens like Americans and Canadians to stay for up to 90 days within a six-month period from the date of your first entry. In that respect it’s just like a Schengen Visa—you can spend a total of 90 days in the country out of the 180 days that starts with your first arrival.
Then there’s the long-term stay visa. This allows you to stay for up to six months within the 12-month period that starts with your arrival. You must show sufficient funds to support yourself, accommodation, health insurance, and a valid reason to want to stay.
If you want to stay for longer, you can apply for a temporary residence permit. The easiest way is by buying a residential property. There’s no minimum value on the property, but it must be habitable. It’s valid for a year and can be renewed if you continue to own the property. There is no specific income requirement, but you need to have at least €3,650 in a Montenegrin bank account.
The one catch is that you can’t spend more than 90 days outside Montenegro during any 12 month period. Doing so could cause your renewal to be refused. Also note that you can’t use the national healthcare system with this type of residency.
Another route is to register a limited liability company (LLC) in Montenegro and employ yourself as the executive director. The company can have its main business elsewhere—ideal for digital nomads and consultants. You must pay yourself at least €570 a month, which includes taxes and social contributions. The advantage is that there’s no maximum time limit outside the country. It also allows you to work other jobs as well…and you can take advantage of the national healthcare system.
The third option is a bit of an oddball. Montenegro is a popular location for yachting. Owners and crew of boats with a marina booking of longer than 90 days can get temporary residency in the country as long as the boat is located there. Unlike the residential property option, this allows you to be out of Montenegro for more than 90 days a year without penalty.
After five years in Montenegro as a temporary resident in any of these categories, you can apply for “permanent” residency. It’s not actually permanent, since it lasts for five years and must be renewed regularly.
You become liable for Montenegrin taxes once you’ve lived in the country for 183 days out of the year. Rates range between 9% (up to €1,000 a month) and 15%. Municipalities in Montenegro charge a local tax of 13% to15% of what you’ve paid the federal government. Montenegro does not have a double taxation treaty with the U.S., but the IRS should give you credit for taxes paid to their government.
By all accounts, Montenegro is one of the easier countries in Europe to get residency. It’s working hard to attract foreign money. If the country’s government stays in the EU’s good books, becoming a Montenegrin permanent resident could someday make you eligible for the benefits of the European Union as well!
Ronan McMahon, Founder, Overseas Dream Home & Real Estate Trend Alert
P.S. Remember, you can check out my full briefing here. And you can ask your questions in advance of Deal Open day. That’s Wednesday, July 24. To ask a question, click here now.
