Financial Preparation

• Determine your total investment budget (property + transaction costs + reserves)
• Establish a currency exchange strategy (Montenegro uses the Euro)
• Research historical USD/EUR or CAD/EUR exchange rates to identify favorable timing
• Set up international wire transfer capabilities with your home bank
• Consider opening a Montenegrin bank account (relatively straightforward for foreigners)
• Evaluate tax implications in both Montenegro and your home country
• Arrange financing if needed (limited options in Montenegro, see Banking section)

Market Research

• Identify target regions based on investment goals (coastal vs. interior; tourism vs. year-round)
• Research location-specific price trends and rental yields
• Join online forums for Montenegro property investors
• Subscribe to local property market reports
• Analyze infrastructure projects and development zones
• Research tourism trends and visitor demographics in target areas
• Plan a preliminary market visit to evaluate areas firsthand
• Understand seasonal variations in rentals and occupancy rates

Professional Network Development

• Connect with lawyers specializing in property purchases for foreign clients
• Identify reputable real estate agencies with English-speaking agents
• Research property management companies in your target market
• Establish contact with currency exchange specialists
• Find a Montenegrin-based tax accountant familiar with non-resident investor concerns
• Connect with building inspectors or construction specialists for property assessments
• Join expatriate networks in Montenegro for on-the-ground insights

Expert Tip: The Montenegrin property market is highly seasonal, with the summer months (May-September) being the most active period for transactions in coastal areas. Winter months offer potentially better negotiating positions but with reduced inventory. Consider timing your property viewing trip during the shoulder seasons (April-May or September-October) when weather remains pleasant, but you’ll avoid the peak tourist crowds and can assess how areas function outside peak season.

Recent Regulatory Change: Montenegro has simplified company formation procedures as part of its EU accession process, reducing the time to establish a D.O.O. to approximately 5-7 business days. While minimum capital requirements are minimal (€1), companies must demonstrate operational substance to maintain good standing. For property investment companies, this typically includes having a local representative, proper accounting, and fulfilling tax obligations.

Banking Setup

• Montenegrin Bank Account Options:
  • Major banks: CKB (Crnogorska Komercijalna Banka), NLB Banka, Erste Bank, Hipotekarna Banka
  • Account types: Non-resident accounts available with passport and proof of address
  • Services: Multi-currency accounts, online banking, international transfers
  • Local presence: Initial account opening generally requires personal presence
• Typical Requirements:
  • Passport
  • Proof of address in home country (utility bill, bank statement)
  • Local tax number (OIB) – obtained during account setup
  • Initial deposit (varies by bank, typically €50-500)
  • Additional documentation for company accounts
• Banking Considerations:
  • Montenegro uses the Euro though not yet an EU member
  • Banking system generally modern but less sophisticated than Western Europe
  • International transfers may take 2-3 business days
  • Online banking platforms typically available in English
  • Mobile banking applications increasingly available

Financing Options

Financing options are more limited in Montenegro than in North America or Western Europe:

1. Local Bank Mortgages for Foreigners:
   • Availability: Limited but possible through some local banks
   • Deposit Requirements: Typically 30-50% for foreign nationals
   • Interest Rates: 4-7% (higher than Eurozone averages)
   • Terms: Typically 5-15 years, shorter than North American standards
   • Documentation: Extensive, including proof of income, credit history, property valuation
2. Developer Financing:
   • Some premium developments offer payment plans
   • Typically requires 30-50% down payment
   • Terms usually shorter (1-5 years) than traditional mortgages
   • Often involves higher effective interest rates
   • Title transfer may be delayed until full payment
3. Home Country Financing:
   • Refinancing existing properties in North America
   • Home equity lines of credit (HELOCs)
   • Portfolio loans against investment accounts
   • International property loans from specialized lenders
   • Often more favorable terms than local Montenegrin financing

Currency Management

Effective currency management is crucial when investing in Montenegro:

• Euro Advantages:
  • Montenegro uses the Euro, eliminating local currency risk
  • Transactions and property values denominated in stable currency
  • No need for multiple currency conversions for European visitors
• Exchange Considerations:
  • Monitor EUR/USD and EUR/CAD trends to identify favorable exchange windows
  • Consider working with currency specialists rather than banks for better rates
  • Services like Wise, OFX, or XE typically offer better rates than banks
  • Forward contracts can lock in exchange rates for future payments
• Payment Strategies:
  • Stage currency conversions to average exchange rate fluctuations
  • Consider holding Euro cash reserves during favorable exchange periods
  • Understand bank transfer limitations and timing
  • Budget for currency exchange fees and spreads (typically 0.5-3%)

Montenegro’s use of the Euro provides stability compared to some emerging markets with volatile local currencies. However, the EUR/USD and EUR/CAD exchange rates can still significantly impact your effective purchase price and ongoing returns when measured in your home currency.

Property Search Resources

• Online Property Portals:
  • Montenegro Prospects – Specialized in foreign buyer properties
  • Realitica – Regional property portal with Montenegro listings
  • Property Montenegro – Focus on coastal properties
  • Montenegro Estate – Comprehensive listings across the country
• Real Estate Agencies:
  • International agencies: Savills, Century 21, RE/MAX
  • Local specialized agencies: Dream Estates, Montenegro Properties, Adriatic Properties
  • Most agencies work on a non-exclusive basis
  • Agency fees typically 3-5% of purchase price, usually paid by seller
• Developer Direct:
  • Major resort developments: Porto Montenegro, Luštica Bay, Portonovi
  • Direct-to-consumer sales offices at development sites
  • Often higher prices but better buyer protection and construction quality
• Local Connections:
  • Significant portion of properties sold through personal networks
  • Expatriate and foreign owner groups on social media
  • Local contacts can often find unlisted opportunities
  • Requires on-the-ground networking

Property Viewing Trip Planning

A well-planned viewing trip is essential given Montenegro’s diverse regions:

1. Pre-Trip Research:
   • Identify 10-15 potential properties before arrival
   • Schedule viewings in advance, especially during high season
   • Research neighborhoods thoroughly online
   • Arrange meetings with legal advisors and agencies
2. Trip Logistics:
   • Plan at least 5-7 days for a comprehensive viewing trip
   • Consider rental car as public transportation is limited
   • Choose accommodation central to target search area
   • Allow for travel time between regions (Montenegro’s roads can be winding)
3. During Viewings:
   • Take detailed photos and videos
   • Check property boundaries and access roads
   • Inquire about utility connections and infrastructure
   • Ask about communal fees and maintenance costs
   • Verify building permits and legalization status
4. Beyond the Property:
   • Visit the area during different times of day
   • Check proximity to amenities and services
   • Assess winter access if considering mountain properties
   • Consider seasonal factors (tourist areas may be empty off-season)
   • Talk to locals and existing foreign owners if possible

Property Evaluation Criteria

Assess potential investments using these key criteria:

• Location Factors:
  • Proximity to the coast or other natural amenities
  • Distance to airports (Tivat, Podgorica, Dubrovnik)
  • Walking distance to shops, restaurants, beaches
  • Year-round accessibility (especially for mountain properties)
  • Development plans for the surrounding area
  • Tourist appeal and established rental market
• Building Quality:
  • Age and condition of property
  • Construction quality (varies significantly in Montenegro)
  • Energy efficiency (important for year-round properties)
  • Building materials and seismic standards
  • For apartments: management company reputation
  • Potential renovation or maintenance requirements
• Rental Potential:
  • Seasonal vs. year-round rental opportunity
  • Target tourist demographic for the area
  • Competition from similar rentals
  • Amenities that increase rental appeal
  • Potential occupancy rates by season
  • Rental management options in the area
• Financial Considerations:
  • Price per square meter compared to area average
  • Potential for appreciation based on area development
  • Ongoing costs (taxes, maintenance, utilities)
  • Currency considerations (EUR-denominated asset)
  • Liquidity and resale potential
  • Financing options if applicable

Expert Tip: Pay particular attention to the legalization status of properties in Montenegro. Following independence, the country implemented a property legalization process for buildings constructed without proper permits. When evaluating a property, ask for the “upotrebna dozvola” (usage permit) or evidence of the legalization process completion. Properties without proper documentation may face challenges with utility connections, renovations, or eventual resale. This is especially important in coastal areas where unauthorized construction was once common.

Legal Due Diligence

• ✓
  Title Verification: Confirm ownership through property excerpt (List Nepokretnosti)
• ✓
  Cadastral Check: Verify property boundaries and registered area
• ✓
  Encumbrance Search: Check for mortgages, liens, or other registered claims
• ✓
  Building Permits: Verify construction and usage permits (građevinska and upotrebna dozvola)
• ✓
  Legalization Status: Confirm status if property was built without original permits
• ✓
  Urban Planning Check: Review zoning and development regulations
• ✓
  Property Tax Verification: Confirm tax obligations are current
• ✓
  Utility Connections: Verify legal connections to water, electric, sewage

Physical Due Diligence

• ✓
  Property Inspection: Professional assessment of structure and systems
• ✓
  Boundary Verification: Physical inspection of property boundaries vs. documents
• ✓
  Access Assessment: Confirm legal access to property via public or private roads
• ✓
  Infrastructure Check: Test utility connections and infrastructure quality
• ✓
  Environmental Assessment: Evaluate flooding risks, land stability, pollution
• ✓
  Common Areas (if applicable): Inspect maintenance, security, accessibility
• ✓
  Renovation Assessment: Obtain estimates if improvements planned

Financial Due Diligence

• ✓
  Comparable Market Analysis: Verify price aligns with recent comparable sales
• ✓
  Rental Market Research: Confirm realistic rental expectations (speak to local agencies)
• ✓
  Tax Calculation: Determine property transfer tax, annual property tax, and income tax
• ✓
  Running Cost Assessment: Calculate all ownership expenses (utilities, maintenance, management)
• ✓
  ROI Calculation: Develop detailed cash flow projections and return analysis
• ✓
  Communal Fees: Verify any homeowners association or building management fees
• ✓
  Currency Risk Assessment: Evaluate EUR/USD or EUR/CAD exchange rate implications

Expert Tip: In Montenegro, verifying the property’s status in the cadastre (katastar) is crucial, but this alone is not sufficient. Always conduct a thorough title search through a qualified local attorney. Montenegro’s property records have gone through multiple transitions—from Yugoslav-era documentation to modern digital systems—creating potential for discrepancies. Your attorney should check for potential restitution claims (from pre-communist owners), inheritance disputes, and unauthorized construction issues. This comprehensive approach can prevent major problems that might not be immediately evident in basic cadastral extracts.

Offer and Negotiation

1. Make an Offer: Typically done verbally through the real estate agent
2. Negotiation: Back-and-forth on price and terms
3. Reservation Agreement: Optional preliminary agreement with small deposit (€1,000-5,000)
4. Preliminary Contract: More formal agreement outlining terms, sometimes with larger deposit

Similar to many European markets, verbal agreements have limited legal enforceability in Montenegro. The transaction becomes more binding with written agreements, particularly the preliminary contract (predugovor). Using a reservation agreement with a modest deposit can secure the property while due diligence proceeds, reducing the risk compared to proceeding directly to a preliminary contract with a larger deposit.

Legal Process

1. Engage Legal Representation: Appoint a Montenegrin attorney to handle the transaction
2. Due Diligence:
   • Title verification through the cadastre
   • Property and ownership documentation review
   • Encumbrance search for mortgages or liens
   • Building permit and legalization status checks
3. Contract Preparation:
   • Draft purchase contract (kupoprodajni ugovor)
   • Review of terms by both parties
   • Negotiation of specific conditions
4. Contract Signing:
   • Formal signing before a notary (notar)
   • Notarization makes the contract legally binding
   • Payment of initial deposit (typically 10-20%)
5. Tax Clearance:
   • Payment of property transfer tax (3% of assessed value)
   • Verification of seller’s tax obligations
   • Obtaining tax clearance certificate
6. Balance Payment:
   • Transfer of remaining funds (typically via bank transfer)
   • Verification of payment receipt
   • Final closing procedures
7. Property Registration:
   • Application to register the title transfer in the cadastre
   • Payment of registration fees
   • Issuance of new ownership documentation

The timeframe from offer acceptance to completion typically ranges from 1-3 months for a straightforward transaction. Off-plan purchases from developers may have longer timeframes with stage payments linked to construction milestones.

Transaction Costs

Budget for these typical transaction expenses:

• Real Estate Transfer Tax:
  • 3% of the property’s assessed value (not necessarily the purchase price)
  • Paid by the buyer
  • Due within 15 days of contract notarization
• Notary Fees: 0.5-1% of property value (depending on complexity)
• Legal Fees: 1-1.5% for attorney representation
• Agency Commission: 3-5% (typically paid by seller but sometimes negotiable)
• Registration Fees: €100-300 for cadastral registration
• Translation Costs: €100-200 if official document translations required
• Bank Fees: Variable for international transfers

Total transaction costs for foreign investors typically range from 5-7% of the purchase price. These costs should be factored into your overall investment calculations. Note that VAT (currently 21%) may apply instead of transfer tax for new properties directly from developers, though this is typically included in the advertised price.

Expert Tip: Consider using an escrow arrangement for property payments in Montenegro, particularly for larger transactions. While not as common as in North America, some law firms and banks offer escrow services that provide additional security by holding funds until specific conditions are met. This reduces the risk of direct payments to sellers before all legal requirements are satisfied. If formal escrow is not available, staged payments coordinated with specific milestones in the transaction process can provide similar protection.

Administrative Tasks

• ✓
  Property Registration: Ensure title is properly registered in the cadastre (typically handled by attorney)
• ✓
  Utility Transfers: Transfer utilities to your name (electricity, water, internet)
• ✓
  Property Tax Registration: Register with local tax authority for annual property tax
• ✓
  Insurance: Arrange property insurance (not legally required but strongly recommended)
• ✓
  Building Management: Register with HOA or building management for apartments/complexes
• ✓
  Local Municipality Registration: Register ownership with local municipal authorities
• ✓
  Property Management Setup: Arrange property management if not personally residing

Regulatory Compliance

While Montenegro has fewer rental regulations than some Western European countries, you should be aware of these requirements:

• Tourist Rental Registration:
  • Properties rented to tourists must be categorized and registered
  • Application made through the Ministry of Tourism
  • Property must meet minimum standards for the category
  • Annual renewal required
• Tourist Tax Collection:
  • Obligation to collect tourist tax from guests (typically €1-1.50 per person per night)
  • Registration with local tourist organization
  • Monthly remittance of collected taxes
• Guest Registration:
  • Legal requirement to register foreign guests with police within 24 hours
  • Can be done online or in person at police station
  • Significant fines for non-compliance
• Income Reporting:
  • Rental income must be reported for tax purposes
  • Potential requirement for fiscal cash register for direct rentals
  • Simplified if working through registered agencies
• Safety Requirements:
  • Fire safety equipment required for rental properties
  • Building standards compliance
  • Regular safety inspections may apply to larger properties

Compliance with these regulations is particularly important if you plan to operate your property as a short-term rental in the tourism sector. Many foreign owners work with local rental management companies that handle these regulatory requirements as part of their services.

Record Keeping

Maintain comprehensive records for tax and legal purposes:

• Property Documents:
  • Purchase contract and title documents
  • Property registration certificates
  • Building permits and technical documentation
  • Insurance policies
  • Utility connection agreements
• Financial Records:
  • All property-related expenses with receipts
  • Utility payments and bills
  • Property tax payments
  • Maintenance and repair costs
  • Building/HOA fee payments
  • Rental income and guest records
• Tax Documentation:
  • Property transfer tax payment confirmation
  • Annual property tax assessments
  • Income tax declarations (Montenegro and home country)
  • Tourist tax collections and payments
  • VAT records if applicable
• Rental Operation Records:
  • Tourist registration documentation
  • Guest registration confirmations
  • Booking agreements and correspondence
  • Rental management contracts
  • Property maintenance log

Montenegrin tax authorities generally require records to be kept for 5 years. Digital record-keeping systems with secure backups are recommended, particularly for overseas investors managing properties remotely. If using a property management company, ensure they provide detailed financial reporting and maintain proper records on your behalf.

Expert Tip: When managing a Montenegrin property remotely, consider setting up a digital system for receiving and managing official correspondence. Some property management companies offer mail handling and document management as part of their services. Alternatively, establish a reliable local contact who can periodically check for any official notices or communications that might require attention. Government communications in Montenegro are still often paper-based, and missing important notices could result in compliance issues.

Montenegrin Tax Obligations

• Property Transfer Tax:
  • 3% of the property’s assessed value
  • Paid by the buyer at the time of purchase
  • Due within 15 days of contract notarization
  • New properties from developers may be subject to 21% VAT instead
• Annual Property Tax:
  • 0.25% to 1% of the property value (varies by municipality)
  • Determined by local authorities based on location, size, and type
  • Typically billed annually with payment in multiple installments
  • Non-resident owners pay the same rates as residents
• Income Tax on Rental Income:
  • 9% flat rate on net rental income
  • Deductible expenses include maintenance, depreciation, insurance, utilities
  • Filing required annually by April 30 for the previous year
  • Property management companies may handle withholding and filing
• Capital Gains Tax:
  • 9% flat rate on the difference between purchase and sale price
  • Adjustments allowed for documented capital improvements
  • Subject to the provisions of applicable tax treaties
  • Tax return due within 30 days of sale transaction
• Tourist Tax:
  • Collected from guests (€0.80-1.50 per person per night)
  • Varies by season and municipality
  • Monthly remittance to local tourist organization
  • Not a tax on the owner but must be collected and remitted
• Value Added Tax (VAT):
  • 21% standard rate, may apply to commercial properties or large-scale rentals
  • VAT registration threshold: €18,000 annual turnover
  • Most small-scale rentals fall below the threshold
  • Short-term tourist rentals may be exempt under certain conditions

Home Country Tax Obligations

Montenegro has tax treaties with a growing number of countries, though not currently with the United States. Canada and Montenegro do have a tax treaty that helps prevent double taxation. Consult with tax professionals familiar with both jurisdictions to optimize your tax position and ensure compliance with reporting requirements in both countries.

Tax Planning Strategies

• Entity Structure: Evaluate whether personal ownership, Montenegrin company, or other structures optimize tax position
• Expense Documentation: Maintain meticulous records of all allowable expenses to maximize deductions
• Capital Improvement Tracking: Document all capital expenditures which may reduce future capital gains tax
• Timing of Sales: Consider tax year timing for property sales to optimize tax position
• Rental Structure: Working through registered agencies may simplify compliance requirements
• Tax Treaty Benefits: Utilize applicable tax treaty provisions to prevent double taxation
• Property Usage: Personal use periods may affect tax treatment of expenses
• Exchange Rate Management: Consider timing of income repatriation based on currency fluctuations

Montenegro’s tax environment is generally favorable with low rates, but compliance is essential. The tax system continues to evolve as part of EU accession preparations, with increased enforcement and digitalization. Working with qualified tax professionals familiar with both Montenegrin and home country requirements will help ensure compliance while optimizing your tax position.

Expert Tip: Montenegro’s low 9% flat tax rates for both corporate and personal income make it one of Europe’s most tax-efficient destinations for property investment. However, North American investors should be cautious about overly aggressive tax structures. Both the U.S. and Canada have increasingly strict reporting requirements for foreign assets and income. A transparent approach that properly utilizes tax treaties and legitimate deductions is generally more advantageous than complex structures that may trigger additional scrutiny from home country tax authorities.

Selecting a Property Manager

Evaluate potential property managers using these criteria:

• Experience with Foreign Investors:
  • Track record working with international clients
  • English language proficiency (other languages if relevant)
  • Understanding of foreign investor concerns and needs
• Local Market Knowledge:
  • Established presence in your specific location
  • Understanding of local rental market trends
  • Knowledge of local regulations and compliance requirements
• Service Offerings:
  • Comprehensive vs. à la carte services
  • Regulatory compliance handling (especially important in Montenegro)
  • Emergency response capabilities
  • Property maintenance and renovation supervision
• Technology & Communication:
  • Online portal for owners to track bookings and finances
  • Regular reporting frequency and format
  • Response time to owner inquiries
  • Multiple communication channels
• Marketing Capabilities:
  • Multi-platform listing strategy
  • Professional photography and property presentation
  • Pricing strategy and seasonal adjustments
  • Target market understanding (Russian, EU, Middle Eastern, etc.)

Management Agreement Essentials

Ensure your property management contract includes these key elements:

• Scope of Services: Detailed description of exactly what is included and excluded
• Fee Structure: Clear explanation of all management fees, commissions, and additional charges
• Contract Term and Notice Period: Duration of agreement and how to terminate
• Reporting Schedule: Frequency and format of financial and occupancy reports
• Maintenance Authority: Spending limits for repairs without prior approval
• Booking Policies: Parameters for accepting reservations and cancellations
• Revenue Handling: Process for collecting, holding, and transferring rental income
• Taxation Handling: Responsibilities for tourist tax collection and reporting
• Regulatory Compliance: Responsibility for guest registration and other legal requirements
• Insurance Requirements: Coverage expectations and liability boundaries

Request references from current clients, particularly other foreign investors, before signing with a property management company. This provides valuable insights into how they handle properties for remote owners. The Montenegrin market has a range of management options from highly professional international standard companies (particularly in luxury developments) to more informal local arrangements.

Expert Tip: Montenegro’s rental market is highly seasonal in coastal areas, with peak demand from June to September. When evaluating property managers, focus on their strategy for shoulder seasons (April-May and October) and potentially low season. The most effective managers have diversified marketing channels targeting different nationalities that travel in different seasons. For example, Russian and Eastern European visitors often prefer August, while Western Europeans frequently travel in May, June, and September. Managers who can tap into these various markets can significantly extend your rental season.

Exit Options

Sale Process

When selling your Montenegrin property:

1. Pre-Sale Preparation:
   • Property presentation and staging
   • Address maintenance issues and cosmetic improvements
   • Gather all relevant documentation
   • Conduct pre-sale inspection
   • Consider professional photography and virtual tours
2. Agent Selection:
   • Research agencies with experience selling to international buyers
   • Evaluate marketing capabilities and networks
   • Commission structure (typically 3-5%)
   • Exclusive vs. non-exclusive listing approach
   • Marketing plan and international exposure
3. Legal Preparation:
   • Engage attorney to verify clean title
   • Resolve any outstanding issues or encumbrances
   • Prepare property documentation package
   • Verify tax compliance is current
4. Pricing Strategy:
   • Comparative market analysis
   • Consideration of current market conditions
   • Seasonal timing for marketing launch
   • Currency considerations for international marketing
5. Negotiation & Contract:
   • Receive and evaluate offers
   • Negotiation through agent or directly
   • Draft purchase agreement with legal assistance
   • Notarization of final contract
6. Closing Process:
   • Receive deposit (typically 10%)
   • Balance payment verification
   • Final property handover
   • Utility transfers and account closures
   • Tax clearance certificate
7. Post-Sale Requirements:
   • Capital gains tax filing within required timeframe
   • Currency repatriation planning
   • Notification to property management/rental agencies
   • Cancellation of insurance and service contracts

The Montenegrin selling process typically takes 2-6 months from listing to completion, though this can vary based on market conditions, property type, location, and price point. Premium properties in desirable locations like Kotor Bay and Porto Montenegro can sell more quickly, while rural or less developed areas may require longer marketing periods.

Market Exit Timing Considerations

Several factors should influence your exit timing decision:

• EU Accession Progress: Montenegro’s EU candidacy status is expected to progress significantly by 2025-2028, potentially driving property value increases as seen in previous EU expansion countries
• Infrastructure Development: Major projects like highways, airport expansions, and marina developments can significantly impact property values upon completion
• Currency Exchange Rates: Monitor EUR/USD or EUR/CAD trends; a strong euro significantly enhances returns when converting back to home currency
• Tourism Growth Trajectory: Continued expansion of Montenegro’s tourism sector with higher visitor numbers and quality improvements supports property demand
• Development Maturation: For properties in newer developments, values typically strengthen as the community becomes established and amenities are completed
• Seasonal Considerations: Spring (March-May) typically offers the strongest selling conditions when coastal properties appear most attractive
• Global Market Conditions: Montenegro’s luxury market is influenced by global wealth trends and international investment flows
• Local Market Cycles: Real estate cycles in Montenegro tend to follow broader European patterns but with more volatility

Montenegro’s relatively young property market continues to mature, with increasing institutionalization and professionalization. The country’s strategic positioning between Western European buyers, Eastern European investors, and growing Middle Eastern interest creates diverse exit opportunities. The expected EU accession represents a significant potential catalyst for property values, particularly in prime coastal areas and areas with strong tourism infrastructure.

Expert Tip: Consider positioning your property to appeal to multinational buyers by maintaining marketing materials and documentation in multiple languages. While English is increasingly common for international transactions, having property details, rental history, and testimonials available in Russian, German, and Arabic can significantly expand your buyer pool. Montenegro’s unique position at the crossroads of European, Eastern European, and Middle Eastern buyer interests means that different nationalities may dominate buyer demographics at different times based on economic and political factors in their home countries.