A comfortable retirement works out cheaper in Montenegro — around £1,800/month for a couple, versus £2,150 in Croatia (about 16% more).
Cost of living, side by side
| Croatia | Montenegro | |
|---|---|---|
| Modest (couple/mo) | £1,550 | £1,300 |
| Comfortable (couple/mo) | £2,150 | £1,800 |
| Premium (couple/mo) | £3,100 | £2,750 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Croatia: EU/EEA and Swiss citizens buy on the same terms as Croatians. Non-EU nationals (including UK citizens) can usually buy an apartment or house but need Ministry of Justice consent under a reciprocity agreement, or can purchase through a Croatian company; farmland, forest and some protected coastal land remain off-limits.
Montenegro: Foreigners can own residential and commercial property freehold on the same terms as citizens; the principal exception is agricultural and forest land, which must be held through a locally registered company.
Croatia: Non-EU nationals can apply for temporary residence on the grounds of financial self-sufficiency — showing modest but stable income or savings, health insurance and accommodation — renewed annually.
Montenegro: A temporary residence permit can be based on property ownership (since 2026 the home generally needs a tax-assessed value of at least €150,000), employment or family ties; permits run for a year, are renewable, and require health insurance.
Croatia: Croatia's public health fund (HZZO) is open to resident retirees for roughly EUR 90-100 a month, with an inexpensive top-up policy (dopunsko) covering most co-payments; UK state pensioners can instead use an S1 form. Private clinics are available for faster access.
Montenegro: Public healthcare is modest, so most expats use private clinics locally or travel to nearby Croatia or Serbia for bigger procedures; private insurance and treatment are relatively inexpensive. Facilities are best around Podgorica and the coast.
Croatia: Croatia taxes residents on worldwide income, but under most double-tax treaties a foreign pension is taxed only in your country of residence; pension income also gets a personal allowance and a 50% reduction, so effective rates are modest. Confirm your treaty position.
Montenegro: Montenegro taxes residents' income, including foreign pensions, on a low progressive scale, nothing on roughly the first EUR 700 a month, then 9% and 15% above that, so a typical pension faces only a modest effective rate. It uses the euro despite being outside the EU.
Croatia: A warm, dry Mediterranean summer along the Adriatic coast with mild winters, turning more continental and colder inland. May, June and September are the sweet spots. Croatia is very safe and easy-going; they drive on the right, English is widely spoken along the coast and by younger people, and daily life is comfortable for British retirees.
Montenegro: A warm Mediterranean coast with hot summers and mild winters, backed by mountains that are cold and snowy in winter. Late spring and early autumn are ideal on the coast. Montenegro is safe and laid-back; they drive on the right, English is widely spoken among younger people and in the tourist towns, and its small size makes it easy to get around.
Croatia: Buyers pay a 3% real-estate transfer tax on resale homes (new-builds carry 25% VAT in the price instead), plus legal, notary and agency fees of a few percent. Non-EU citizens such as Britons need Ministry of Justice consent under a reciprocity rule, which can add two to six months to the process.
Montenegro: Buyers pay a 3% property transfer tax on resale homes (new-builds include 21% VAT instead), plus legal and agency fees of a few percent, and the process is fairly quick. Note that residence can be based on owning a home assessed at EUR 150,000 or more.
Croatia: Istria (Pula, Rovinj, Porec) for a gentle, Italian-flavoured peninsula close to Western Europe; the Dalmatian coast around Split and Zadar for island-hopping and sun; and Dubrovnik for beauty at a premium.
Montenegro: Kotor and its dramatic bay for scenery and history; Tivat for the smart Porto Montenegro marina; Budva for beaches and buzz; and Herceg Novi for a sunny, greener setting near the Croatian border.
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