Gross yield based on the Easy Monte catalogue
To see whether buy to let in Montenegro makes sense, we compared median sale prices with median long-term rents in our catalogue at the start of October 2026. Gross yield here means annual rent (monthly rent × 12) divided by the purchase price.
Keep in mind these are asking prices, not transaction prices. Final purchase prices are often lower, and the rent you achieve depends on the flat's condition and negotiation. Sample sizes are small, so treat the figures as a guide, not a forecast.
- Budva, 1 bedroom: sale 156,500 € (40 listings), long-term rent 700 €/month (49 listings) — about 5.4% gross
- Budva, 2 bedrooms: 284,900 € / 900 €/month — about 3.8%
- Bečići, 1 bedroom: 171,600 € / 850 €/month — about 5.9%
- Bečići, 2 bedrooms: 257,400 € / 1,000 €/month — about 4.7%
Long-term or seasonal rental
Our catalogue currently lists 167 long-term rentals, 61 offers "until the season" and 8 seasonal ones. That mirrors the coastal market: many owners let to tenants for autumn, winter and spring, then switch to short stays in summer when demand and rates peak.
Long-term letting gives predictable income with little effort: one tenant, one contract, low wear. Short-term letting can earn more per month in July and August, but the season is short, and occupancy in May, June and September depends on weather, flights and competition. You also take on cleaning, linen, booking platform fees, guest communication and tourist tax.
The "until the season" model is popular but needs a careful contract with a clear move-out date. More on lease terms in our long-term rental guide.
Costs that reduce your net yield
The gap between gross and net yield comes from the owner's costs. Budget for them before you buy:
- annual property tax, set by the municipality within legal limits as a percentage of market value;
- utilities and internet during vacant periods;
- building maintenance fees: common areas, lift, building management;
- furniture and appliances, which help a flat rent faster and need periodic replacement;
- property management if you do not live in Montenegro: finding tenants, viewings, rent collection;
- agency fees for finding a tenant;
- repairs: repainting, plumbing, air conditioning units.
Tax on rental income in Montenegro
According to public sources for 2025–2026, an individual's income from letting property is taxed at 15%. If the owner does not document actual expenses, a standard 30% deduction usually applies, so the effective tax is around 10.5% of rent received. Tourist (short-term) letting has its own standard expense rates and, in some cases, a flat-rate (lump-sum) regime.
For short-term letting, the owner must register the accommodation with the municipality or tourist organisation, register guests and collect tourist tax, which in Budva is a small amount per person per night. Foreign long-term tenants also need to be registered at their address.
Tax rules and rates change from time to time, so confirm current conditions with Easy Monte, a notary or a tax adviser before buying. For an overview of purchase and ownership taxes, read our guide to property costs and taxes.
Example: gross vs net yield
The example below is illustrative: the cost amounts are assumptions that show the method, not data for a specific property. Take a one-bedroom flat in Bečići at the median asking price of 171,600 € and rent of 850 € a month.
Result: about 6,740 € a year, or roughly 3.9% net versus 5.9% gross. If you include purchase costs (transfer tax, notary, agency), the return on the capital invested is slightly lower again.
- Gross income: 850 € × 12 = 10,200 € (about 5.9%).
- One month vacant: −850 €, leaving 9,350 €.
- Property tax (assumed): −300 €.
- Building fees and utilities while vacant (assumed): −400 €.
- Repair and furniture reserve (assumed): −500 €.
- Tenant-finding fee (assumed half a month's rent): −425 €.
- Income tax of 15% on 70% of rent: about −980 €.
Which flats rent best
In our experience with coastal rentals, demand is most stable for compact flats. The catalogue numbers agree: one-bedroom flats in Budva and Bečići show higher gross yields than two-bedroom ones. Our comparison of Montenegrin cities helps weigh locations and prices, and smaller entry options are among our studios for sale.
- 1 bedroom or studio — a wider pool of tenants and a lower entry price;
- walking distance to the sea and amenities;
- a parking space, a strong argument on the coast;
- full furniture, air conditioning, washing machine, fast internet;
- a well-kept building with a lift and clear maintenance costs.
How Easy Monte helps owners
Easy Monte is a real estate agency in Budva handling rentals and sales along the coast. We check every property before publishing and support the deal until signing. Owners can list a flat via our owners page: we find a tenant, arrange viewings and help with the contract.
To test demand before buying, browse current long-term rentals — the best guide to real rents in your chosen area. We do not promise returns: results depend on the property, purchase price and how it is managed, but we will help you work out the numbers soberly.