Montenegro vs. Spain: The Decline of the “Dream Country”

For decades, Spain was synonymous with the perfect European refuge: sun, sea, and a relaxed way of life. However, that image has changed. Rising wealth taxes, high income tax, increasing bureaucracy, and noticeable problems with informal trade as well as illegal immigration along the coasts have tarnished the glow of what was once the ultimate German “dream vacation destination.”

Simultaneously, Montenegro is positioning itself as the modern, low-tax, safe, and culturally intact “second Monaco” of Europe.

We highlight the reasons why wealthy expats and investors are now choosing the Balkan newcomer over the former German favorite, and which serious differences characterize daily life today.

Montenegro vs. Spain: Taxes, Security, and Quality of Life

Aspect	Montenegro (“Second Monaco”)	Spain (Western EU Member)
Income Tax Rate	Low: Maximum 15% (Global taxation). Very attractive flat rates.	Very High: Progressive up to 50% (depending on the region). High tax burden.
Wealth Tax	None. (A massive advantage for high-net-worth individuals.)	Present (varies regionally, e.g., in Catalonia, Valencia). A major deterrent for millionaires and investors.
Currency	Euro (€) (Used unilaterally).	Euro (€) (Official currency, linked to the ECB).
Cost of Living	Low/Very Low.	Medium/High. Real estate and rental prices are extremely high, especially in desirable coastal regions (Barcelona, Marbella, Balearic Islands).
Property Purchase	Low ancillary purchase costs (3% transfer tax). Straightforward.	High ancillary purchase costs (up to 12% transfer tax, notary fees, etc.). High bureaucracy.
Immigration & Security	Low Crime compared internationally. Very high reputation in Europe. Low issues with illegal migration.	Increasing Issues: Growing illegal immigration on the coasts, leading to increased informal trade (counterfeits, watches, etc.) and a feeling of insecurity in tourist centers.
Tourism Image	Exclusive/Emerging: Focus on yachting, luxury resorts (Porto Montenegro, Portonovi). Attracts high-end clientele.	Mass Tourism: Large areas suffer from overcrowding, cheap all-inclusive packages, and informal trade.
Political Stability	Stable, focused on EU integration. Centralized government.	Instable: Strong regionalism (Catalonia) and ideological divides. Uncertainty in tax legislation (regional tax autonomy).

Conclusion: The Shift in Appeal

The comparison clearly shows that Spain, while offering the infrastructure and benefits of EU membership, is no longer the top choice for a growing number of High Net Worth Individuals (HNWIs) and affluent retirees.

• Montenegro scores with a more attractive tax package (no wealth tax, max 15% income tax), a clearer immigration process, and the crucial lifestyle factor (exclusivity, security, intact culture). It is the country that attracts millionaires today to both save and enjoy their money.
• Spain struggles with a massive tax burden and social and security issues in coastal regions. It remains an attractive vacation destination but is increasingly rejected as a permanent residence or Plan B due to the fiscal burden and the unpleasant factors mentioned.

The choice is a trade-off between old EU security/high taxes (Spain) and emerging exclusivity/low taxes (Montenegro).

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