For interested parties following along:
Montenegro DOES NOT offer legitimate "low cost of living" unless you choose to live as the average Montenegrin person. The country is not in the EU (not the worst thing in the world in many respects) and has to pay heavy import taxes on many supermarket items so food is often 20-30 percent higher than you would see in even Central European countries.
The country produces little to nothing on its own so in order to save money by "buying local" involves going to one of the thousands of low-quality pekaras multiple times per day and subsisting on tasty, but low-quality bread and/or burek which is a macronutrient nightmare OR eating the local meat. It isn't hard to come across the sources of this meat aimlessly walking local residential streets spending their days eating out of the numerous overflowing trash dumpsters.
If that information seems a little too non quantifiable (as far as "promoting healthy lifestyles" go), the country also clocks in at 24th overall for smoking rates.
We'll get back to that Balkan paradise in a minute, but let's take a quick look at tax rates. We'll include both income (which "passive income" might classify as, depending on how the country taxes) and CGT:
Montenegro you're looking at 15% across the board (some sources of income/investment are actually no subjected to tax). No argument that this is pretty good. Doesn't make up for the awful quality of life the country presents.
Spain goes like this:
- Spanish income tax for incomes up to €12,450: 19%
- Spanish income tax for incomes ranging from €12,451 to €20,200: 24%
- Spanish income tax for incomes ranging from €20,201 to €35,200: 30%
- Spanish income tax for incomes ranging from €35,201 to €60,000: 37%
- Spanish income tax for incomes ranging from €60,000 to €300,000: 45%
- Spanish income tax for incomes over €300,000: 47%
with CGT like this:
- 19% for the first 6.000€ obtained as a profit
- From 6.000€ to 50.000€, the tax percentage is 21%
- From 50.000€ onwards, a 23%
I'm not sure how much is going to be necessary to woo the 18-21 Slavic virgin, but let's say it's at least 50k. Well, in either case, your gonna get hit with a higher tax bill than you would in the US.
and Italy:
0€ | 28.000€ | 23% | 6.440€ |
28.001€ | 50.000€ | 35% | 6.440€ + 35% on the part exceeding 28.000€ |
50.001€ | | 43% | 14.140€ + 43% on the part exceeding 50.000€ |
"Capital gains are categorized as miscellaneous income. The tax is calculated based on the difference between the selling price and the purchase cost, which may include any additional legal and administrative expenses.
Starting from January 1, 2019, non-business individuals are subject to a flat tax of 26% on capital gains earned from both qualified and non-qualified participation in Italian and foreign companies."
Is this what winning feels like?
In reality, you're "dream scenario", even under the best conditions, probably looks something more like this:
Somehow, you DID find the dream 18-21 Slavic virgin. She is a "traditional" girl you met while traveling through northern Serbia. She loves her family and enjoys trips to the seaside. Italy and Spain sound exotic, but Montenegro is more inviting due to the historic ties and language. Unfortunately, the few somewhat desirable parts of the country are closed off to you since real estate prices are higher (due to internet interest pumping and a huge influx of Russian and Ukrainians with Zelensky bucks) than they would be in many Western countries so you settle on a quieter town further south and further away from the sea.
Her parents come to visit and aren't so impressed with your place. You're a Westerner after all; why aren't you living in one of those dream villas they saw in the ads at the Belgrade Airport? Additionally, they aren't doing so well financially and her father still struggles from injuries he incurred during the conflicts ~30 years ago. Your traditional girl promises them that they can stay with you to provide support and care for them and begins making the arrangements.
In the meantime, you have had some trouble making friends since you don't speak Serbian ("I SPEAK MONTENEGRIN!") and nobody is really interested in you or your Western sensibilities anyways. You have started to take up "hiking" (your only form of exercise since there isn't a proper gym or similar facility within 30 kilometers), although the sub-standard quality of the "trails" isn't ideal. After your 15th burek, you start to question your decisions and you wonder why even the bottled water tastes disgusting.
I could go on, but this is honestly a more realistic version of the fantasy scenario presented (notice, I didn't imply anything about a gold-digging spouse).
Be careful when using the Internet as your only source of information prior to making a major lifestyle decisions.