Croatia vs. Montenegro 2026: Where is it worth buying real estate?

The Adriatic coast has been attracting Slovak and Czech investors for years - proximity, direct flights from Bratislava, warm seas and growing tourism make Croatia and Montenegro the two most popular destinations for buying holiday or investment property.

However, the two countries have diametrically different conditions in 2026 - from prices to legislation for foreigners to the prospect of EU membership.

In this article you will find current numbers, cost comparisons, and practical recommendations on which destination is best for which type of buyer.

Property prices in Croatia in 2026

The Croatian market is growing in 2026, but more slowly and unevenly. The national average is around €2,900/m² , which represents a year-on-year growth of 10-13%. However, the volume of transactions has decreased - in 2025, approximately 117 thousand property transfers took place, i.e. 13% less than the previous year, mainly due to weaker demand from foreign buyers, who traditionally account for around 37,5% of transactions on the coast.

Regional differences are significant:

• Split became the most expensive Croatian city in 2026, apartments here exceed €4/m² and in the best locations they exceed €6/m² – Split has overtaken the traditionally more expensive Dubrovnik.
• Dubrovnik It remains among the most expensive locations, with prices in a similar range to Split.
• Central and Southern Dalmatia (Split, Dubrovnik, islands): €5,000 – €7,000/m².
• Istria (Poreč, Rovinj, Pula): €3,000 – €4,000/m², with traditional interest from Italian and Slovenian buyers.
• Zadar and Sibenik: lower entry prices, growing interest from investors looking for an alternative to crowded locations.
• Zagreb: around €3,500/m², growth driven by domestic demand.

New from 2025 is a property tax for second (holiday) homes in the amount of €0,60 - €8/m² per year, paid by owners without permanent residence - it must be taken into account in the long term when calculating the costs of Croatian real estate.

Property prices in Montenegro in 2026

Montenegro generally offers lower initial capital for a comparable seaside location. Prices vary significantly depending on the prestige of the location:

• Budva (old town): apartments without a sea view from €1,800 – €2,500/m² (1+1 apartment approx. €90,000 – €130,000).
• Budva – Bečići, Rafailovići: apartments with sea view 2,800 – 3,800 €/m².
• Bay of Kotor (Kotor): new buildings €3,000-€4,200/m².
• Tivat / Porto Montenegro: the most prestigious location in the country, €4,000 - €5,500/m², comparable to premium parts of Split.
• Bar and Ulcinj: the most affordable coastal locations, €1,700 – €2,600/m².

In addition to Central European clients, demand in Montenegro is also driven by buyers from Germany, Turkey and the surrounding Balkan countries. The market is also being driven by better accessibility – direct flights from Bratislava to Podgorica and improving road infrastructure to the coast.

Who can buy: rules for foreign buyers

This is the point where the two countries differ the most.

Croatia – as an EU member state – allows EU and EEA citizens to buy real estate without any restrictions , so Slovak buyers do not need any permission. Citizens of non-EU countries are subject to the principle of reciprocity : they can only acquire real estate if their home country allows the same right to Croatians. Reciprocity applies, for example, to Bosnia and Herzegovina, Israel or Brazil, for several countries (e.g. Canada, Singapore, Thailand) reciprocity has not yet been officially confirmed. A common solution for buyers without reciprocity is to establish a Croatian sro (doo), through which it is possible to buy real estate without restrictions – the process usually takes 7-10 days.

Montenegro, on the other hand, poses virtually no obstacles to foreign buyers – a foreigner (including Slovak citizens) can buy an apartment, house, villa and commercial property without the need to obtain citizenship or residence. Restrictions apply only to specific categories: agricultural and forest land, land near the state border, some islands, cultural monuments and protected areas. The ownership of real estate itself does not automatically entitle you to residence, but from 2026 it may support an application for temporary residence if the officially assessed value of the real estate reaches at least €150,000.

Taxes and costs associated with the purchase

Croatia:

• Real Estate Transfer Tax (RETT) when buying on the secondary market: 3% from the purchase price.
• For new buildings directly from the developer, instead of RETT, you pay VAT 25%, usually already included in the price.
• In addition, notary, legal and cadastral fees are in the order of percentages.
• Annual property tax for recreational/second home: €0,60 – €8/m² depending on municipality and seasonality.

Montenegro:

• The transfer tax on the secondary market is progressive: basic rate of 3% for the first value band, higher bands are taxed at a rate of 5% or 6%.
• It applies to new buildings VAT 21% from the value of the construction (land is not subject to VAT).
• The annual property tax ranges from 0,25 - 1% from the cadastral value, according to the municipality.
• The total incidental costs when buying second-hand usually range between 5 - 8% from the price of the property.

In both countries, an additional percentage of a percentage point must be added to the price of the property itself - Montenegro is slightly more expensive for higher amounts due to progressive tax, while Croatia is more predictable thanks to a flat rate.

Rental income

According to Global Property Guide data for the second quarter of 2026, the average gross rental yield is:

• Croatia: 4,21% (Zagreb 4,39%, Rijeka and Osijek around 4,49%, Split only 3,47% - high real estate prices here reduce relative profitability).
• Black Mountain: 4,84% (Podgorica 5,15%, Budva 5,01%, Tivat 4,36%).

Montenegro thus offers an average gross yield of approximately 0,5-1 percentage point higher for a comparable type of property, which is mainly due to the lower entry price of real estate. Smaller units (studios, 1+1 apartments) in both countries yield a higher yield than large family apartments.

EU membership, the euro and Schengen – why it matters

Croatia has been a member of the EU since 2013 and has been part of both the eurozone and the Schengen area since January 1, 2023 – this means a stable currency, free movement without border controls, and full legal protection of property under EU law.

Montenegro has been using the euro unilaterally since 2002, despite not formally being part of the eurozone or the EU. However, the country is the most advanced candidate for EU accession – by mid-2026, it had closed 18 of 33 negotiation chapters, with a target date of accession in early 2028. If this timetable is met, current property buyers in Montenegro could benefit from the price increases that EU accession could bring – a similar effect was seen in Croatia before and after 2013.

For whom is Croatia worth it and for whom is Montenegro worth it?

Croatia is worth visiting if:

• you are looking for the legal certainty of an EU member, the euro and borderless Schengen,
• you plan to use the property often yourself and you will appreciate the developed infrastructure and tourism,
• you have a higher budget and are interested in established locations such as Split, Dubrovnik or Istria,
• you are an EU citizen – the purchase process is simple and without reciprocity.

Montenegro is worth visiting if:

• you are looking for lower initial capital in a comparable location by the sea,
• you want a higher gross rental income,
• you will appreciate a simpler purchasing process without restrictions for foreigners,
• you are willing to take the higher risk associated with a country outside the EU in exchange for the potential for price increases upon future entry into the union.

Frequently Asked Questions (FAQ)

Can a Slovak buy real estate in Croatia without restrictions? Yes. As an EU citizen, you can buy real estate in Croatia under the same conditions as Croatian citizens, without the need to prove reciprocity.

Does a Slovak need a permit to buy real estate in Montenegro? No. Montenegro allows foreign buyers, including citizens of Slovakia, to acquire most types of real estate without a special permit, with the exception of agricultural land, border areas and some protected areas.

Will I automatically obtain residency by purchasing real estate in Montenegro? No, ownership does not in itself establish residency. However, it can support an application for temporary residency if the value of the property is at least approximately €150,000.

Where is the higher rental yield – in Croatia or in Montenegro? In 2026, the average gross yield in Montenegro (approx. 4,8%) is slightly higher than in Croatia (approx. 4,2%), mainly due to lower entry property prices.

Is it worth buying in Montenegro before it joins the EU? For investors with a higher risk tolerance, yes - historically, real estate prices in candidate countries have grown both before and after EU accession, as shown by the example of Croatia after 2013. However, this is an expectation, not a certainty.

Conclusion

Croatia and Montenegro offer two different investment strategies on one sea in 2026.

Croatia is a choice of certainty – EU membership, the euro, Schengen, and an established legal framework, at the cost of higher entry costs and restrictions for non-EU buyers.

Montenegro is a choice of potential – lower prices, higher rental yields and almost no barriers for foreigners, in exchange for the higher uncertainty of a country still on its way to the EU.

The final decision should be based on whether you prefer stability and personal use of the property, or profitability and speculation for future growth upon Montenegro's accession to the EU.