Montenegro rental yield calculator: gross and net return on a flat in 2026
Rental income in Montenegro is taxed at 15% after standard costs of 30% on a long-term lease, or 50% or 70% when letting to tourists, plus a municipal surtax of up to 13%. On €10,000 of yearly rent that comes to €1,186.50 long term or €847.50 for tourist lets with the tourist tax paid. A €150,000 resale flat let for €750 a month, 11 months a year, gives a 5.5% gross and about 4.4% net yield.
Calculate
A long-term lease fills most of the year; on the coast, tourist lets are concentrated in summer.
Standard costs reduce the base for the 15% tax when you do not document actual costs. The 70% rate also requires average occupancy of at least 60 days a year.
Set by the municipality: up to 13%, and up to 15% in Podgorica and Cetinje.
A flat you let counts as a second home: 0.3% to 1.5% of the market value the municipality assesses. The calculator applies the rate to the price.
Building charges, repairs, insurance, cleaning, platform or agency fees.
Your estimate
- Transfer tax, notary and commission
- €5,127.99
- Total cost of the flat
- €155,127.99
- Rent per year
- €8,250.00
- Income tax 15%
- €866.25
- Surtax (prirez)
- €112.61
- Annual property tax
- €450.00
- Other costs
- €0.00
- Net income per year
- €6,821.14
- Gross yieldRent per year divided by the price
- 5.5%
- Net yieldNet income divided by the total cost
- 4.4%
- Years to recover the total cost
- 22.7
Not included: loan interest, capital gains tax on a later sale, and the tourist tax you collect from guests.
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How is rental income taxed in Montenegro?
| How you let | Standard costs | Tax base on €10,000 | Tax and 13% surtax | Share of the rent |
|---|---|---|---|---|
| Long-term lease | 30% | €7,000 | €1,186.50 | 11.9% |
| To tourists, tourist tax paid | 50% | €5,000 | €847.50 | 8.5% |
| To tourists through an agency or tourist organisation, at least 60 days a year | 70% | €3,000 | €508.50 | 5.1% |
Rent is income from property, taxed at 15% on a base reduced by costs: your documented actual costs, or the standard costs above if you have none. The surtax (prirez) is added on the tax: up to 13%, and up to 15% in Podgorica and Cetinje. VAT registration becomes compulsory once turnover in the last 12 months exceeds €30,000.
Example: a €150,000 flat let long term
| Item | Amount |
|---|---|
| Purchase price | €150,000.00 |
| Transfer tax 3% | €4,500.00 |
| Notary fee with 21% VAT | €627.99 |
| Total cost | €155,127.99 |
| Rent: €750 × 11 months | €8,250.00 |
| Income tax: 15% of 70% of the rent | €866.25 |
| Surtax 13% | €112.61 |
| Property tax 0.3% | €450.00 |
| Net income per year | €6,821.14 |
| Gross yield | 5.5% |
| Net yield | 4.4% |
The rent is an assumption: Montenegro publishes no official city-by-city rent series, so compare current listings for the same neighbourhood and contract length. At this net income the total cost is recovered in about 23 years, before any change in rent or in the value of the flat.
What changes when you let to tourists?
Letting to tourists brings obligations a long-term lease does not have: the accommodation is entered in the Central Tourist Register before the first guest, guests are registered, and the tourist tax is collected and paid over. Nightly rates also have to cover empty months, cleaning, consumables and the platform's commission, so enter those under other yearly costs and count only the months you realistically fill.
A flat you let is not your residence, so for property tax it is a second home: 0.3% to 1.5% a year of the market value the municipality assesses, at the rate the municipality sets.
Frequently asked questions
- How is rental income taxed in Montenegro?
- As income from property, at 15% on the rent reduced by costs: 30% without documentation on a long-term lease, 50% or 70% when letting to tourists. The municipal surtax of up to 13%, or 15% in Podgorica and Cetinje, is added on the tax.
- How much tax do I pay on €10,000 of yearly rent?
- €1,186.50 on a long-term lease with a 13% surtax, or €847.50 when letting to tourists with the tourist tax paid.
- How is rental yield calculated?
- Gross yield is the yearly rent divided by the purchase price. Net yield subtracts income tax, property tax and running costs and divides by the total cost, including transfer tax and the notary fee.
- What property tax does a rented flat pay?
- As a second home, 0.3% to 1.5% a year of the market value the municipality assesses.
- Do I have to register for VAT when I rent out a flat?
- Only once your turnover in the last 12 months exceeds €30,000.
- Is there official data on rents in Montenegro?
- No, Montenegro publishes no city-by-city residential rent series; every average comes from listing samples, so compare current listings in your neighbourhood.
Our detailed guides
- How to Rent Out an Apartment in Montenegro: Tax and Rules
- Rent Prices in Montenegro 2026: What the Data Actually Shows
- Before You Put Your Budva Apartment on Airbnb: The Plaque, the 12-Hour Rule and 7.5 Percent
- Property Tax in Montenegro: Rates, Deadlines and How It Is Calculated
- Ending an apartment lease in Montenegro: notice period, termination without notice, deposit and tenant eviction
- Is Montenegro a Good Place to Buy Property? An Honest Data Review
- Buying a Home in Montenegro with a Mortgage: Interest Rates and the Rules for Foreigners
Other calculators
Sources
- Amendments to the Personal Income Tax Law (December 2025)
- Law on Local Self-Government Financing
- Law on Property Tax
- Law on Real Estate Transfer Tax
- Notary Tariff (Official Gazette of Montenegro 49/2026)
- Law on Value Added Tax (amended in Official Gazette of Montenegro 94/2024)
Rates and rules were checked in September 2026. Fijaka is a classifieds platform and does not give tax or investment advice; check your own calculation with the Tax Administration or a tax adviser.