A severance payment is a turning point: after years in a job, a larger sum suddenly lands in your account. Savings accounts pay little interest, and many people wonder whether the money could become something tangible – such as an apartment by the sea. Montenegro on the Adriatic is an option many Germans discover only on second look. This article explains what matters, what costs to expect and which questions to settle before buying.
Why property instead of a savings account?
A savings account is convenient, but the money stays abstract. An apartment is a real asset: you can use it yourself, invite family and friends, or rent it out part of the year. At the same time, property is not automatic: prices can rise or fall, renting needs organisation, and the money is less liquid. Keep an emergency reserve first and only invest what you will not need for a long time.
Why Montenegro?
Montenegro is around two hours' flight from many German airports and uses the euro, so there is no currency risk. Foreigners can generally buy apartments and houses on the same terms as locals, without permission or quotas; restrictions apply only to certain categories such as agricultural land or border areas. Source: Rona Legal
Prices are often lower than in many coastal towns in Croatia, Spain or Italy. An example from our catalogue: a new one-bedroom apartment (48 m²) with sea view on the 6th floor in central Bar, about 800 m from the beach, for €138,000.
Budva or Bar?
Budva is the tourist hub with an old town, promenade and a lively season; prices and holiday-rental demand are higher. Bar is calmer, with a large port and a year-round town centre; the same budget often buys more space or a sea view.
Purchase costs
- Transfer tax (resale): 3% up to €150,000; €4,500 + 5% of the excess up to €500,000; €22,000 + 6% above. Paid by the buyer. Source: Sotheby's Realty Montenegro
- New build from a developer: usually 21% VAT included in the price instead of transfer tax. Source: Rona Legal
- Notary, lawyer, translator: depend on price and scope – ask for a quote in advance.
- Annual property tax: set by the municipality, usually 0.25–1% of market value; 0.3–1.5% for secondary homes. Source: Rona Legal
- Running costs: utilities, building fees, insurance and management if needed.
What about taxes in Germany?
How your severance, any rental income or a later sale are taxed in Germany depends on your situation. We do not advise on this – please talk to your tax adviser (Steuerberater) before buying.
Use it yourself or rent it out?
Many buyers do both: a few weeks a year for themselves, the rest of the season for holiday guests. How well renting works depends on location, furnishing, season and management. Reliable local management matters. More on our Rental & Management page.
The purchase in brief
- Set a budget (including costs and a reserve).
- Select and view properties – in person or by video.
- Have documents and the cadastre checked by an independent lawyer.
- Preliminary contract and deposit.
- Sale contract at the notary, payment, cadastre registration.
- Transfer tax return within 15 days of acquisition.
Step-by-step guide: Buying property in Montenegro as a German.
FAQ
Can a German buy an apartment in Montenegro? Yes, no permission is needed for apartments and houses on building land.
Do I get a residence permit with the purchase? Buying property does not guarantee a residence permit. Check the current rules with the authorities or a lawyer.
Do I need to be there? Not necessarily: video viewings are possible, and signing can be done by power of attorney.
Can I rent the apartment out to holiday guests? Yes – results depend on location, season and management. We are happy to share real examples from comparable apartments.
Taxes in Germany? Please clarify with your tax adviser.
Your next step
Thinking of investing your severance in a seaside apartment? See matching offers on our page Investing a severance payment, or contact Adriom directly: sales@adriom.me, +382 68 752 559 (also WhatsApp).
As of October 2026. General information, not legal or tax advice.
