Why Montenegro is the Perfect Home Base for Exploring Europe

Montenegro, a hidden gem in southeastern Europe, is rapidly becoming a favored Mediterranean destination for expats and travelers. Its strategic location, stunning landscapes, and vibrant expat community make it an ideal base for exploring Europe.

My husband and I first bought a home here in 2016, sold it in 2023, and could have settled anywhere in Europe. But we chose to reinvest in Montenegro—and here’s why.

A Diverse and Welcoming Expat Community

Montenegro’s diverse and welcoming expat community is one of its greatest assets. Expats from all over the world, including South Africa, the UK, the U.S., Germany, Turkey, and Canada, have chosen Montenegro as their dream destination. This melting pot of cultures fosters a vibrant, dynamic atmosphere where it's easy to find like-minded people to connect with.

Whether hiking in the mountains, exploring scenic trails, enjoying water sports, or attending local festivals, Montenegro offers countless opportunities to build friendships and a strong sense of community. In places like Budva, expats can enjoy a thriving local music scene, savor traditional cuisine, and immerse themselves in the area's rich history.

Budva is known for its stunning beaches, vibrant nightlife, and well-preserved Old Town. |©iStock/Iskra77

Non-Schengen Advantage

Montenegro’s status as a non-Schengen country provides a significant advantage for travelers. The Schengen zone allows non-EU citizens only 90 days within a 180-day period across 29 countries. Having a home base in Montenegro allows you to reset your Schengen clock, giving you the flexibility to explore Europe without the pressure of visa restrictions.

For non-EU citizens from countries like the U.S., Canada, and Great Britain, Montenegro allows stays of 90 days every 180 days. This makes it an ideal location for long-term travelers, digital nomads, or those looking to split time between two countries. With ferries from Croatia to other destinations, you can easily alternate between Montenegro and neighboring countries like Croatia or Italy.

Stunning Natural Beauty

Montenegro’s natural beauty is unparalleled. The Bay of Kotor, Europe’s southernmost fjord, is a UNESCO World Heritage site, and its towering cliffs and azure waters are breathtaking. Montenegro’s 294 kilometers (183 miles) of coastline are dotted with charming villages and pristine beaches, while towns like Kotor, Budva, and Herceg Novi boast unique historic charm.

For those who prefer cooler temperatures, the mountainous regions of Zabljak and Kolasin offer a perfect retreat for hiking in summer and skiing in winter. We often refer to Montenegro as the "California of Europe" because of how easily you can experience both mountains and the sea within a short drive.

The Bay of Kotor in Montenegro, surrounded by majestic mountains and tranquil waters. |©iStock/Givaga

Strategic Location in Europe

Montenegro’s strategic location makes it a great hub for regional travel. With easy access to neighboring countries like Croatia, Albania, Serbia, Kosovo, and Bosnia and Herzegovina, it’s an excellent base for exploring the Balkans. Ferries from Bar, Montenegro, to Bari, Italy, and overnight trains to Belgrade further expand your travel options.

With two international airports and another nearby in Dubrovnik, Croatia, Montenegro offers flights throughout Europe and the Middle East. While there are no direct flights from the Americas, connecting flights through Europe make travel relatively seamless.

Adventure Awaits

For those who crave adventure, Montenegro offers thrilling activities such as zip-lining over the Tara Canyon and white-water rafting. There are also excellent opportunities for kayaking in the picturesque Bay of Kotor. Imagine paddling through one of the most stunning landscapes on Earth, surrounded by majestic mountains, cliffs, stone houses, and old churches. This remains one of our favorite adventures in this special little country.

Montenegro’s natural beauty provides endless possibilities for outdoor enthusiasts. During the hot summer months, a refreshing dip in the Adriatic is a treat, whether you’re enjoying the shores of Budva or the concrete pontoons of Herceg Novi. For a more secluded beach, we recommend a trip to Kamp Begovic in Veslo. This area offers a charming beach with crystal-clear waters along a rugged coastline. Though we haven’t personally tried cliff diving, it’s a favorite for adrenaline seekers. The natural beauty here is stunning, and the small café on-site offers reasonably priced refreshments. While camping in this area is expensive, a day visit is ideal for families. We also recommend wearing water shoes to protect your feet from the jagged rocks, which can be found for around 7 Euros at the local Jumbo in Radanovici, just outside Kotor.

The awe-inspiring Njegoš Mausoleum, perched atop Mount Lovćen. |©iStock/Fikander82

One of our favorite destinations is Lovćen National Park. Its lush, verdant forest provides a soothing canopy of shade, making it the perfect refuge on hot days. Exploring the winding hiking trails reveals layers of natural beauty, from fragrant pines to bursts of wildflowers. A true highlight is the awe-inspiring Petar II Petrović-Njegoš Mausoleum, perched at the summit. It offers unparalleled panoramic views. On clear days, you can glimpse Bosnia and Herzegovina, Albania, Croatia, Serbia, and the shimmering Adriatic Sea. Despite having visited more than a dozen times since 2016, the experience never loses its magic.

Montenegro is also rich in cultural experiences. The village of Perast is a picturesque destination with well-preserved architecture and stunning views. Walking through this little village feels like stepping back in time. Just off the coast, Montenegro's iconic Our Lady of the Rocks church can be reached by a short boat ride costing 5 Euros. We often sit at a café, enjoying a freshly made cappuccino while watching the world go by.

Affordable Cost of Living

One of Montenegro’s biggest draws is its affordability. Compared to Western Europe, the cost of living here is significantly lower. We live comfortably on less than $2,000 a month, including all expenses. Groceries are about 50% cheaper, and dining out costs 45% to 50% less than in many other European countries. The abundance of fresh seafood makes dining both delicious and affordable.

Real Estate Opportunities

Montenegro offers a wide range of real estate options, from affordable homes in the southern coastal regions to luxury developments like Porto Montenegro, Lustica Bay, and Portonovi. While these high-end developments rival the luxury of Monaco, affordable properties can still be found in charming coastal villages like Ljuta on the Bay of Kotor.

For those with a higher budget, luxury real estate developments along the Adriatic coast offer world-class amenities and stunning views. But even outside these areas, real estate remains reasonably priced, and year-round rentals are affordable.

An aerial view of the scenic village of Ljuta in the Boka Kotorska Bay.|©iStock/xbrchx

Favorable Taxes

Montenegro’s tax system is highly favorable, making it an attractive destination for investors, entrepreneurs, and expats. The country offers a significantly lower tax rate than many other European countries, such as Portugal, which has now made significant changes to the Non-Habitual Resident Program, affecting the tax regime. Montenegro’s flat income tax rate applies to both personal and corporate income, creating a business-friendly environment that encourages foreign investment.

Additionally, Montenegro has a very favorable tax rate for capital gains. This applies to profits from the sale of assets such as real estate, shares, and other securities and is a significant savings compared to other European countries. Montenegro has established agreements on double taxation avoidance with numerous countries, though the US is not one of these countries. This ensures that personal and corporate business is not taxed twice on the same income. Montenegro does not have a wealth tax, inheritance tax, or gift tax.

For those seeking to establish residency, programs are available for homeowners and corporations. The newest option is the digital nomad visa. Overall, Montenegro’s clear and advantageous tax system, along with its prime location and breathtaking scenery, makes it a perfect choice for those aiming to minimize their tax burden while experiencing a superior quality of life.

Celebrations and Festivals

Montenegro’s vibrant culture is reflected in its numerous festivals and celebrations. From the Mimosa Festival in Herceg Novi, which marks the arrival of spring, to the Sea Dance Festival in Budva, there is always something happening. These events provide an excellent opportunity to immerse yourself in Montenegrin culture and traditions.

A Prime Location for Home Swaps

Montenegro is also an ideal location for home swaps. Imagine spending your summers by the Adriatic Sea, with its pristine beaches and crystal-clear waters, and then swapping homes with someone in another part of the world during the off-season.

We recently swapped our home with a family in Copenhagen and enjoyed a Scandinavian summer. Montenegro’s beautiful autumn and spring weather makes it an attractive destination for those looking to escape cold climates. Home swaps offer a cost-effective way to travel and experience new cultures while maintaining a comfortable and familiar home environment. We have another one planned for 90 days this winter in Tuscany, Italy.

The Takeaway

Montenegro is more than just a beautiful destination—it’s a perfect home base for exploring Europe. Its stunning landscapes, welcoming expat community, low cost of living, and strategic location make it an ideal choice for travelers and expats alike. Whether you’re looking to reset your Schengen clock, enjoy a high quality of life, or explore the Balkans, Montenegro has it all.