For a buyer from outside the EU, an American, a Briton, a Canadian, an Israeli or a Turk, the two coasts differ most at the moment of signing. In Croatia, a non-EU individual or a foreign company can acquire real estate only under reciprocity and with the consent of the Minister of Justice; a contract signed without that consent is null, and after a refusal the same property cannot be applied for again for five years (Ownership Act Arts. 356 and 357). In Montenegro there is no consent procedure: foreigners own under the same Act as Montenegrins, except for agricultural land, forest, islands and the one-kilometre land-border strip (Property Act Arts. 412 and 415). Croatia has already legislated equal treatment for citizens of OECD countries, which would cover all five of those buyers, but that version applies only once Croatia itself joins the OECD, and on 25 October 2026 Croatia was still an accession candidate. On residence the difference runs the other way from what many buyers expect: Montenegro grants a renewable permit to owners of property with a transfer-tax base of at least €150,000, while Croatia has no property-based permit at all.
Sources, checked 25 October 2026. Croatia: Zakon o vlasništvu i drugim stvarnim pravima (Ownership Act), NN 91/96 to 52/25, Articles 354 to 358a; Zakon o strancima (Aliens Act), NN 133/20, 114/22, 151/22, 40/25 and 55/26, Articles 57 and 61; Zakon o porezu na promet nekretnina (Real Estate Transfer Tax Act), NN 115/16 and 106/18, Articles 5, 6, 9 and 12; Zakon o lokalnim porezima (Local Taxes Act), NN 115/16 to 152/24, Articles 25 to 27; Zakon o pomorskom dobru i morskim lukama (Maritime Domain and Seaports Act), NN 83/2023, Articles 5 and 6; the OECD's list of members and accession candidates. Montenegro: Zakon o svojinsko-pravnim odnosima (Property Act), "Sl. list CG" 19/2009 and 29/2025, Articles 412 to 417; Zakon o strancima (Law on Foreigners), "Sl. list CG" 12/18 to 33/26, Articles 38, 56, 60a, 64 and 65; Zakon o porezu na promet nepokretnosti (Real Estate Transfer Tax Act), "Sl. list CG" 36/13 to 33/26, Articles 6, 7 and 11; Zakon o porezu na nepokretnosti (Property Tax Act), Articles 9 to 11, with the coastal municipalities' decisions checked 28 September 2026; Zakon o morskom dobru (Law on the Maritime Domain), Articles 3 and 7. This is general information. We advise on Montenegrin law; a Croatian purchase needs counsel admitted in Croatia.
The comparison in one table
| Question | Montenegro | Croatia, buyer from outside the EU and EEA |
|---|---|---|
| Can I own a flat or a house? | Yes, under the same Act as a Montenegrin (Art. 412) | Only under reciprocity and with the Minister of Justice's consent, an administrative act (Art. 356(2)–(3)) |
| What if I sign before the state approves? | No state approval is required | The contract is null without the consent (Art. 357(1)) |
| What if I am refused? | Not applicable | No new application for the same property for five years (Art. 357(3)) |
| What can I never own? | Agricultural land, forest, property within 1 km of a land border and on islands, natural resources, goods in general use, cultural monuments of exceptional or special importance (Art. 415(1)); up to 5,000 m² of farm or forest land only with a house on it (Art. 415(3)) | Property in areas declared closed to foreigners by law (Art. 358). Agricultural land stays outside even the equal-treatment rule for EU and OECD buyers (Art. 358a) |
| Inheritance | A foreigner inherits like a Montenegrin citizen (Art. 414) | Under reciprocity (Art. 356(1)) |
| Through a local company | Possible; the company is the owner | Under this Act, a company with its registered seat in Croatia is not a "foreign person" unless another law provides otherwise (Art. 355(3)), so the consent regime does not apply to it |
| Residence from owning property | Temporary residence, up to one year at a time, renewable, with a transfer-tax base of at least €150,000 for non-EU buyers (Arts. 38, 56, 64) | No property-based permit. A stay "for other purposes" for up to one year; a new application only six months after it expires, except for property owners who are retired and over 60 (Arts. 57(4), 57(6), 61) |
| Digital nomad permit | Up to two years, extendable by up to two more (Art. 60a) | Up to 18 months (Art. 61) |
| Transfer tax | Progressive: 3% up to €150,000, €4,500 plus 5% above, €22,000 plus 6% above €500,000 (Art. 11) | Flat 3% of market value (Arts. 9 and 12) |
| Who pays it | The buyer (Art. 7) | The buyer (Art. 6) |
| New building bought with VAT | No transfer tax (Art. 6) | No transfer tax (Art. 5(2)) |
| Annual property tax | A percentage of the municipality's assessed value: 0.25% to 1.00%, a second home 0.3% to 1.5% (Arts. 9, 10); on the coast 0.45% to 0.70% for a second home | €0.60 to €8.00 per m² of usable area a year, set by each local unit (Local Taxes Act Art. 26); not charged on a home used for permanent residence (Art. 27) |
| The seashore | Maritime domain: at least six metres from the line of the highest storm waves; structures on it become part of it (Arts. 3, 7) | Maritime domain is outside legal commerce: no ownership or other real right on any basis, and it cannot be leased or rented (Art. 5) |
Consent in Croatia: how it works and what it means for your contract
Croatia's Ownership Act applies to foreigners unless a law or treaty says otherwise (Art. 354(1)). A natural person is "foreign" if they lack Croatian citizenship, and a company is foreign if its registered seat is outside Croatia (Art. 355). For a foreign person from outside the EU, three rules then follow:
- Reciprocity. A foreigner can acquire real estate only if Croatians can acquire on the same footing in the buyer's country (Art. 356(2)). The Ministry checks this for your country; it is a condition, not a formality.
- Consent. The Minister of Justice must consent, by administrative act, on the application of the buyer or of the seller (Arts. 356(2)–(3) and 357(2)).
- Nullity and the five-year bar. A contract aimed at acquiring ownership is null without the consent (Art. 357(1)). After a refusal, the same buyer cannot apply for the same property again for five years from the rejected application (Art. 357(3)).
In practice that turns the Croatian contract into a conditional one. A deposit paid before consent is a deposit on a contract that may never become valid, so its return has to be written into the agreement. Montenegro has no equivalent step: a foreign buyer's risk there lies in the register and the plan, not in a state approval. See can foreigners buy property in Montenegro.
The OECD change Croatia has already legislated
In 2025 Croatia amended Article 358a of the Ownership Act (NN 52/25). The new version extends equal treatment, buying on the same terms as Croatian citizens, beyond EU and EEA citizens to citizens and companies of OECD member states, and of states that adhere to the OECD codes on the liberalisation of capital movements and current invisible operations. The United States, the United Kingdom, Canada, Australia, Israel and Turkey are OECD members.
That version is not yet applied. The consolidated text labels it as the version that applies after Croatia's accession to the OECD, and on 25 October 2026 the OECD listed Croatia among its accession candidates, not its 38 members. Until accession, the consent and reciprocity rules above apply to buyers from those countries. Two limits survive even after accession: agricultural land stays outside the equal-treatment rule, and the state keeps the power to adopt measures justified by public order, security or health (new Art. 358a(2)–(3)).
Residence: Montenegro has a property route, Croatia does not
Croatia's Aliens Act lists the purposes for which a non-EU citizen can hold temporary residence: family reunification, education, study, research, humanitarian reasons, life partnership, work, posted work, long-term residents of another EEA state, "other purposes", digital nomads, and Croatian emigrants (Art. 57(1)). Owning property is not one of them. A property owner can apply for residence "for other purposes", which is granted for up to one year (Art. 61), and a new application for that purpose can be made only six months after the previous permit expires (Art. 57(4)). The exception is a retired third-country national over 60 who owns real estate in Croatia, together with their spouse or partner: for them the permit can be extended (Art. 57(6)).
Montenegro's Law on Foreigners names the use of real estate as a ground for temporary residence (Art. 38(1) item 8). The conditions are in Article 56: a qualifying building (houses, villas, flats, hospitality and business premises, not bare land), at least a half share, and, for buyers who are not EU, EEA or Swiss citizens, a transfer-tax assessment with a tax base of at least €150,000. The permit is issued for up to one year and renewed on proof that the property tax has been paid (Art. 64), and it ends if you spend more than 30 days outside Montenegro while it is valid (Art. 65(1) item 3). The detail is in residence through property in Montenegro.
So for a non-EU buyer who wants to live by the sea for most of the year, Montenegro offers a renewable status tied to the property, provided they actually stay. Croatia offers ownership, after consent, and a residence question that has to be solved on another ground.
What the purchase costs: transfer tax at three price points
Both countries charge transfer tax to the buyer and both exclude new buildings sold with VAT. Montenegro's rate rises with the price; Croatia's does not. On a resale:
| Price | Montenegro (progressive) | Croatia (3%) |
|---|---|---|
| €200,000 | €7,000 | €6,000 |
| €400,000 | €17,000 | €12,000 |
| €800,000 | €40,000 | €24,000 |
The Montenegrin figures follow Article 11: €4,500 plus 5% of the part above €150,000, and €22,000 plus 6% of the part above €500,000. In Croatia the base is market value, which the tax administration determines, as a rule, from the contract price (Art. 9). The Montenegrin rules for buyers are in transfer tax and VAT for buyers.
What it costs to hold: two different ways of taxing a second home
Montenegro taxes the value; Croatia taxes the area. Take an 80 m² apartment that a Montenegrin coastal municipality assesses at €200,000, an illustrative figure:
| Montenegro, second home | Croatia, not a permanent residence | |
|---|---|---|
| How the tax is set | Rate × assessed market value | Amount per m² of usable area, set by the local unit |
| Range | 0.45% (Ulcinj) to 0.70% (Kotor) on the coast | €0.60 to €8.00 per m² a year |
| On the example | €900 to €1,400 a year | €48 to €640 a year |
In Croatia the tax is owed by whoever owns the property on 31 March of the year (Local Taxes Act Art. 25(1)), and a local unit that adopts no decision charges €0.60 per m² (Art. 26(3)). In Montenegro most foreign owners pay the second-home rate, because a dwelling counts as a main residence only if it is the owner's only dwelling in Montenegro and the owner has registered residence there (Property Tax Act Art. 11). The municipal rates are in property tax rates by municipality.
The shoreline in both countries
Neither country lets anyone own the shore. Croatia's 2023 Act states that the maritime domain is outside legal commerce, that no ownership or other real right can be acquired over it on any basis, and that it cannot be the object of a lease or rental contract (Art. 5(1)–(2)); it includes the seashore, beaches, reefs, ports and similar land by nature intended for general use (Art. 6). Montenegro's maritime domain is a strip at least six metres wide from the line reached by the highest waves in the strongest storms, which Parliament can widen for particular stretches (Art. 3); structures built on it become part of it (Art. 7(3)). In both countries "beachfront" describes a view, not a title. See what Montenegrin coastal owners actually own.
Which one fits which buyer
| If you are… | The legal point that decides |
|---|---|
| A non-EU buyer who wants to sign quickly | Montenegro has no consent step; Croatia's consent and reciprocity come first, and the contract is null without consent |
| A non-EU buyer who wants to live there | Montenegro: renewable permit at a €150,000 tax base, and the 30-day absence rule. Croatia: no property route; one year "for other purposes", unless retired and over 60 |
| An American, British or Israeli buyer willing to wait | Croatia's OECD amendment will remove consent for you from the day Croatia joins the OECD; no date is set in the Act |
| A buyer at €400,000 and above | Montenegro's progressive transfer tax costs more at the purchase; Croatia's per-m² property tax can cost less every year after |
| A buyer of farmland or a rural plot | Closed in Montenegro except 5,000 m² with a house; excluded from Croatia's equal-treatment rules |
| An EU citizen | Croatia treats you like a Croatian, except for agricultural land and protected parts of nature (Art. 358a); Montenegro exempts you from the €150,000 value test for residence (Art. 56(5)) and will extend equal treatment for property from EU accession |
For EU buyers in Montenegro, see EU citizens buying in Montenegro.
What this page does not settle
- Whether reciprocity exists for your country in Croatia. That is the Croatian Ministry's determination, case by case.
- Croatian income tax, capital gains and rental rules. Not compared here.
- When Croatia joins the OECD. The Act ties the change to accession and sets no date.
- The Croatian side of any transaction. We advise on Montenegrin law; a Croatian purchase needs counsel admitted in Croatia.
Whose side we are on, and how we are paid
We act for buyers on the Montenegrin side, and we have nothing to gain from steering you there. We take no commission from sellers, developers, agents or brokers, in either country, in any form. The fee you pay us is our only income from your matter and does not change if you buy, so "Croatia fits what you want better" costs us nothing to say.
We are lawyers, not licensed investment advisers. We compare what the statutes give and take; we do not tell you which coast will make money.
Comparing a Montenegrin property against a Croatian one
Send us the Montenegrin listing, with the cadastral municipality and folio number of the property register extract (list nepokretnosti) if you have it, and tell us your citizenship and whether you intend to live there. We will tell you in writing whether you can own it, what the purchase and the yearly holding will cost in tax, whether it can carry a residence permit for you, and what the Montenegrin contract must contain. Property matters sit with our real estate practice; the legal differences between Montenegrin towns are in where to buy property in Montenegro.
