Fortress & Land for Sale in Lustica
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Peter Flynn
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Description
Over a century ago, Montenegrin defenders erected fortresses on islands and rocky points at the mouth of the Bay of Kotorska to protect it from enemy forces in the Adriatic Sea. At the eastern point on the Lustica Peninsula, the historic ruins of the old Bastion are all that remain of the old embattlements. The Arza Cape Resort is located at this natural confluence of turbulence and tranquillity, where historic battles took place in the most picturesque of natural settings. This prominent 11-hectare point is encircled by the stunning beauty of the bay and ocean coastlines and set against the backdrop of a steeply sloping hillside and the dramatic mountains beyond.
One of the most prominent features of the Montenegrin landscape is the highly varied, physical texture of the terrain. On the Bay of Kotorska, there is a natural sense of enclosure at each finger of water that extends into the land. Sheer rock wall faces provide an awe-inspiring backdrop to the rocky shorelines, vibrant blue waters, and quaint, tile-roofed villages below. This richly textured landscape and sense of outdoor enclosure are natural inspirations for the planning and architecture of the Arza Cape Resort. Below is what you are able to build on the Arza Cape Resort.
Here is what you can build on Parcel to make a large 5 Hotel:*
This hotel should represent a specific type of tourist offer, related to enjoyment in high comfort conditions, with various catering facilities and valuable cultural and historical sites located in their immediate vicinity. On the urban plot, there should be open-air restaurants, shops, clubs, children's spaces and similar.
The Gross Build Area on the Parcel (GBA) is 10,078 m² and the foundation of the building is 2,519 m². It’s possible to build 3 levels S+P+2(3) (basement, ground floor, 2 or 3 levels).
The service room (basement) or garage is not included in the GBA.
Here is what you can build to make 5 Villas:*
You can build villas on the second urbanized parcel. How many rooms in the villas there will be is optional, with the recommendation that the rooms be designed bigger and richer, with all the luxurious facilities (sauna, fitness, gym, jacuzzi).
The Gross Build Area per villa on the parcel (GBA) can be 310 m² and the foundation of the building can be 155 m². It’s possible to build 2 levels P+1 (ground floor + 1 level).
The lower level of the villa has a terrace with a swimming pool and is not included in the GBA.
Here is what you can build to make a large Sports and Recreation Centre:
The plan does not define which types of sports will be represented within this purpose, but the choice can be of interest to investors and users of space, as well as of the area of available space. Open swimming pools, tennis courts, basketball, volleyball, mini-football, handball, badminton, mini-golf, and table tennis are possible. It is also possible to have squash, bike riding, running tracks, and swimming pools. In addition to the construction of open terrains, construction of facilities can be located where the following facilities can be located, such as rooms, club rooms, sports equipment store, fitness centre, gym, bowling alley, sports equipment store, but also restaurant, cafeteria, snack bar, and related catering facilities.
There are 3 parcels in total for that area. Two parcels are considered Green Zone which is only meant for parks and playgrounds, the size of the two is 14,814 m².
The Gross Build Area (GBA) on the other parcel where you can build a Sports or Recreation Centre is 2,700 m².
Here is what you can build on the Tower of Arza:
Tower Arza was built at the end of the 19th century. Arza’s ruin requires urgent restoration and other necessary protection measurements. The Arza Tower can become a place for a variety of cultural events, both seasonal and permanent. It can function as a summer scene of guest ensembles, as a place for holding dramatic, musical and literary events, and as a gallery for periodical settings of works by artists.
The Gross Build Area on the parcel (GBA) is 1,455 m² and the foundation of the building is 485 m². It’s possible to build 3 levels P+2 (ground floor + 2 levels).
Here is what you can build on the Arza Beach:
As for the beach, the realization of the proposed solution of the sandy beach surface would increase from the existing 2,920 m² for an additional 5,690 m², which would enable simultaneous stay on the beach for more than 700 customers with a satisfyingly high standard of 8 m² space per customer.
Arza’s Harbour:
Arza’s Resort should also have a harbour constructed. Protective buildings at the western end of the beach should be placed administratively on the coastline so that they can take on the role of the harbour.
Harbour ports are built parts of the coast which provide conditions for berthing of excursion and nautical vessels, i.e. embarkation and unloading of passengers.
The construction of smaller facilities with the accompanying contents necessary for their functioning is permitted with the port. Maximum surface area is 300 m², the floor is P.
Just as there is Porto Montenegro, Lustica Bay, and Porto Novi, this could be a great project to make a new resort and have an excellent investment.
PRICE UPON REQUEST
This land is 23.1 km away from Tivat Airport, 24.9 km away from Kotor Old Town, 26 km away from Porto Montenegro, and 38.4 km away from Budva.
ntRealty is a Real Estate Agency based in Tivat, Montenegro, headed by British businessman Peter Flynn, who has lived in the area since 2005 and focused his efforts in various aspects of real estate, including development, architecture, interior design, and investing in real estate in the area. The Tivat office is run by a team of professionals who really understand the local market. The team is there to help guide you through the buying (or selling) process, and we pride ourselves on giving a high level of service in a polite, friendly, and efficient way.
ntRealty specializes in properties for sale all around the Bay of Kotor, Tivat Bay, and Lustica, and our clients range from Porto Montenegro and Lustica Bay to hundreds of private individuals who put their trust in our operation.
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Frequently Asked Questions
After purchase and registration, you'll receive keys and take possession. Next steps include transferring utilities to your name, setting up building management payments if it's an apartment, getting home insurance, and—if you're renting it out—registering for tourist tax and obtaining any required permits. Your lawyer or agent can guide you through the administrative bits.
Rental income is taxed at 15% on gross receipts if you're renting short-term (tourist rentals), or you can opt for taxation on net income after expenses for long-term rentals. You'll also pay municipal tourist tax (€1 per night per guest in high season, €0.50 in low season) and need to register your rental with the tax authorities and tourism directorate.
Annual property tax is quite low—just 0.25% of the property's assessed value per year. The assessed value is typically well below market value, so you might pay €200-500 annually on a coastal apartment worth €200,000. It's collected by your local municipality and is one of Montenegro's more affordable ongoing costs.
Notary fees are set by official tariff and scale with your purchase price. For most residential properties, expect €350-€1,000 plus 21% VAT—so roughly €423-€1,210 total. A €250,000 property runs about €532 in base fees. There are also small charges for document copies and administrative filing, so your final notary bill might be slightly higher.
For resale properties, you'll pay 3% Real Estate Transfer Tax (RETT) on the purchase price. New builds from developers are zero-rated for RETT but include 21% VAT in the price—though developers can usually reclaim this VAT. Either way, budget around 3% of the purchase price for transfer taxes unless it's a new build where VAT is already included.
The notary doesn't receive or hold the money directly. Instead, the seller must confirm in writing to the notary that they've received the full purchase price. Only after the notary receives this written confirmation (and verifies tax obligations are met) will they issue the Clausula Intabulandi. Some transactions use bank confirmations for added security.
Yes, if you're married or in a registered partnership, you typically need your spouse's or partner's written consent to sell property in Montenegro, even if the property is registered solely in your name. This protects both parties' interests under matrimonial property rules. Your notary will confirm the specific requirements for your situation.
The Clausula Intabulandi is the notary's official confirmation that all legal and financial obligations have been met, allowing the property to be registered in your name. The notary issues it only after verifying you've paid the full price and all taxes. It's your green light for cadastre registration—without it, you can't become the legal owner.
Every property and owner has specific numbers that appear on contracts: your JMBG (personal ID), the seller's JMBG or company registration, and the property's cadastral parcel number (katastarska parcela/čestica). These link everything in the official registries and are essential for registration and tax purposes.
No, Montenegro doesn't have a title insurance system like the US or UK. Instead, buyers rely on comprehensive legal due diligence—your lawyer or notary checks the cadastre, ownership history, encumbrances, and permits before you commit. It's a different system, but with proper checks it's just as secure.
It depends on where your documents were issued. If you're from a Hague Convention country (which includes most Western countries), you need an apostille. If not, your documents need consular legalisation. Either way, they'll also need certified translation by a sworn court translator in Montenegro.
Your lawyer requests an official extract (List nepokretnosti) from the Real Estate Cadastre, which shows current ownership, any mortgages or liens, property boundaries, and legal description. The notary also verifies the seller's identity and legal capacity. This due diligence typically takes a few days and costs around €18-25 for the cadastre extract.
You obtain a JMBG through the local Police Directorate (MUP) by presenting your passport, proof of property ownership, and completing a simple application. The process typically takes a few days, and you'll need this number for tax declarations and property registration—even without residency.
For a straightforward resale apartment with clean paperwork, the buying process can often be completed within 3-6 weeks. More complex transactions, new builds, or mortgage-financed purchases can take longer.
Some banks do lend to foreigners, but conditions are tighter—lower loan-to-value ratios and stricter income requirements. Many foreign buyers finance through their home country or pay cash.
Officially, everything is in euros. You can convert from your home currency before sending, or in some cases settle using cryptocurrency if both parties and the notary agree—but the contract price and taxes are always euro-based.
Beyond the purchase price and transfer tax, budget for notary fees, translation, legal fees, and potentially agency commission—together, these typically add 2-4% to your total cost.
No. Most foreign buyers use a Power of Attorney to authorize someone here—your lawyer, NT Realty, or another trusted representative—to sign on your behalf.
By convention, the buyer usually pays both the notary fees and the sworn court translator fees, though this can be negotiated between parties.
Yes, and it's more straightforward than most people expect. Montenegro welcomes foreign buyers—both EU and non-EU—and you can own property in your own name without needing residency or a local company in most cases.
Disclaimer: Purchase Costs & Information Accuracy
All costs associated with the purchase, including notary fees, real estate transfer tax (if applicable), and any legal fees, are the sole responsibility of the buyer. ntRealty bears no responsibility for the correctness of the information published here, which is based exclusively upon details provided to us by the property owner(s). ntRealty has no obligation to update, modify, or amend this listing or to notify a reader if any information, including urbanistic or cadastral data, subsequently becomes inaccurate. All listings are subject to prior sale. Agency Commission: No agency commission is charged to the buyer. The agency fee is paid by the seller.
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