Perched at the entrance of the Bay of Kotor, Herceg Novi is often described as Montenegro’s “city of sunshine,” but its appeal goes far beyond scenic views and Mediterranean charm. Once known primarily as a summer resort, this coastal town is emerging as a strategic hub for entrepreneurs, investors, and expatriates seeking a vibrant, all-season lifestyle.
A location that sells itself
Herceg Novi sits just 30 minutes from Dubrovnik Airport in Croatia and less than an hour from Tivat Airport, giving residents and business owners fast links to major European cities. Its position at the mouth of the Adriatic makes it a natural gateway to the Bay of Kotor and the wider Montenegrin coast, while the nearby border with Croatia provides easy access to EU markets.
Unlike some of Montenegro’s busier coastal spots, Herceg Novi retains a relaxed Mediterranean atmosphere, offering the quality of life of a small town with the connectivity of a regional hub.
Business opportunities on the rise
Herceg Novi’s economy has long relied on tourism, but a new wave of opportunities is diversifying the local business landscape:
- Boutique hospitality & wellness: The town’s historic Old Town, mineral springs in nearby Igalo, and year-round mild climate create ideal conditions for wellness centers, boutique hotels, and medical-tourism projects.
- Real estate development: From luxury seaside apartments to hillside eco-villages, demand from foreign residents is strong, driven by lower prices compared with Budva or Tivat and the town’s growing reputation as a safe, welcoming community.
- Maritime & yachting services: With Porto Novi Marina and easy access to the Adriatic, opportunities abound in yacht maintenance, charter services, and nautical tourism.
- Digital & creative industries: Stable internet, competitive living costs, and new coworking spaces are attracting digital nomads and creative professionals looking for a year-round base.
Montenegro’s flat 9% corporate tax and favorable property ownership laws give entrepreneurs an additional incentive to set up shop in Herceg Novi.
A true all-season lifestyle
Unlike seasonal resorts that empty out in winter, Herceg Novi offers year-round life.
- Mild winters & 200+ sunny days: A subtropical climate ensures comfortable weather even in January, ideal for residents and long-term visitors.
- Cultural calendar: Events such as the Mimosa Festival, music concerts, and art exhibitions keep the town lively long after the summer tourists have left.
- Outdoor living: Hiking trails in the Orjen mountains, sailing in the bay, and proximity to ski resorts in northern Montenegro mean recreation is never out of season.
Strategic advantage on the EU’s doorstep
While Montenegro is not yet an EU member, its Stabilization and Association Agreement provides free trade with the bloc, and full EU accession is on the horizon. Herceg Novi’s immediate proximity to Croatia—an EU state—gives businesses fast, frictionless access to European supply chains and customers.
The bottom line
Herceg Novi is evolving from a picturesque Adriatic hideaway into a dynamic base for business and modern living. With its combination of natural beauty, year-round lifestyle, and pro-investment climate, the town offers something rare in the Balkans: the tranquility of a coastal retreat and the momentum of an emerging economic hub. For entrepreneurs and investors seeking a place to live, work, and grow, Herceg Novi may well be Montenegro’s best-kept secret.
