On the coast of the Bay of Kotor, in the heart of Perast - a city that exudes elegance, the sea and history - stands one of the most valuable monuments of baroque architecture on the Adriatic coast: Zmajevic Palace. This impressive building, built in the 17th century, is not only a witness to the glorious past of a maritime family, but also a rare opportunity for investors who understand that true luxury rests on history, authenticity and a breathtaking location.
Today, when Montenegro is becoming an increasingly important destination for luxury real estate and high-profile investors, the sale of Palata Zmajević represents a unique chance to own part of the Mediterranean heritage - a space where tradition, the sea and sophistication meet in perfect harmony.
Perast - a city that breathes the past in Venetian and Baroque church and secular architecture in the stunning Bay of Kotor
Perast is not an ordinary seaside town. It is a living gallery of history, stone and sea. Located between Kotor and Risno, this small town is a unique oasis in the stone of the glacial Boko Kotar bay on the Adriatic. It has barely thirty houses, but they echo the spirit of the era when Perast and Boka were the maritime centers of the Mediterranean.
The city even has 16 churches and 17 palaces, which makes it one of the richest architectural pearls of the Adriatic.
With its stone facades that are reflected in the water, Perast exudes serenity and dignity. No cars, no crowds - just silence, the sound of waves and the smell of salt. Exactly in that environment, Zmajevic Palace occupies a special place - both in terms of size and historical importance.
The Zmajević family is the maritime aristocracy of Perast
The Zmajević family was among the most respected in Boka. Their name is written in golden letters in the history not only of Perast, but also of the entire eastern Adriatic. They came from a Catholic noble line, known for sailors, priests and diplomats who served both Venice and Rome.
The most famous member of the family was Andrija Zmajević (1624–1694) - archbishop of Bar, poet, theologian and prominent cultural representative of his time. He was educated at first in Perast (probably at a Franciscan school), then in Kotor, and in the 1650s at the college of the Congregation for the Propagation of the Faith in Rome, where he obtained the title of doctor of philosophy and theology. He acted as a patron in his native Perast; In 1664, he had a baroque palace built, and in 1678, the chapel of Our Lady of the Rosary, where he was buried. According to his iconographic program, T. Kokolja painted wall paintings in the church of Our Lady of Škrpjela; it is believed that two portraits of Zmajević were created in the process (the figure of the great priest in the picture Presentation of Mary in the Temple and the figure of St. Augustine in the large painting that divides the nave from the altar).
His cousin Vicko Zmajevic (1670–1745) he became the archbishop of Zadar and later the primate of Dalmatia. He completed philosophy and theology in Rome; was the abbot of the abbey of St. Jurja in Perast (1695–1701), then 1701–13. Archbishop of Bar and Primate of Serbia and since 1713 Archbishop of Zadar; was also papal visitor to the Balkan countries under Turkey. He significantly influenced papal policy in the Balkans. Wrote ecclesiastical and dogmatic-polemical treatises and epistles of exuberant rhetoric and letters in Italian, Latin and Albanian. He was an ardent supporter of the all-Slavic idea and, in the name of the holy father, worked on an attempt to create a union between the Catholic and Orthodox churches. (source
As both were educated in Italy, they absorbed the spirit of the Baroque and Renaissance, and then woven it into the architecture and spirit of their native Boca.
Matija Zmajević was the nephew of Bar archbishop Andrija Zmajević and the son of Captain Kristofor Krilo Zmajević. Matija Zmajević became famous as an admiral of the fleet of the Russian Navy, as a member of the Admiralty of Imperial Russia and as a shipbuilder. It is an undeniable fact that Matija Zmajević was one of the founders of the Russian Navy, and he personally founded the Caspian Fleet of the Russian Imperial Navy.
Count Tolstoy, who stayed in Perast in 1698, mentions in his diary that he was hosted in the Zmajević Palace. This acquaintance later greatly influenced the life of Matija Zmajević.
Their palace in Perast was built as a symbol of the reputation, wealth and spiritual breadth of the family. Although it has changed owners and uses for centuries, Zmajević Palace has remained one of the best-preserved examples of Venetian Baroque on the eastern coast of the Adriatic.
Breathtaking architecture
The Zmajević Palace was built at the end of the 17th century, in the era when Perast and Venice shared the same aesthetic expression – stone facades, spacious terraces, rich details and a view that includes the sea as an integral part of the architecture.
The building is imposing, three-storey, with monumental staircase which leads to the main entrance. They dominate the facade large windows with stone frames and a baroque balcony with a view of the islands Our Lady of the Rocks i Saint George - the two most famous symbols of Perast.
The interior of the palace exudes the elegance of the past: high ceilings with wooden beams, stone walls almost one meter thick, and light reflecting off the surface of the sea entering through massive windows.
It used to be in the central part ballroom for receptions and cultural events, while the upper floors were family spaces overlooking the bay.
What makes this palace particularly interesting for modern investors is that it is its structure is extremely stable even today, with authentic elements preserved in their original form - a true pearl for restoration or adaptation into a luxury hotel, exclusive residence or cultural center.
A historic palace as an investment: a blend of history and modern luxury
Spain's El Pais in an article on investment trends presents a high profitable trend of restoration of historical buildings and transformations into a unique space for living or an establishment, often a hotel. Lançois Doval, a website specializing in unique properties, estimates that even in 2025, investment in luxury historic properties will continue to be characterized by a diversity of international investors, although domestic investors will retain a significant share. In Spain, local investors were the leading investors in 2024 with 75% of unique real estate transactions, while we do not yet have fresh data for Montenegro.
„"Rehabilitation of historic buildings has become one of the main investment options, with a focus on preserving architectural heritage while introducing modern conveniences," points out Narcís Casteyó, director of a luxury real estate agency. Lucas Fox Girona and a specialist in rural and historic property management.
This trend is also present in Europe's newest investment hot spot, Montenegro, where you can still find unique Venetian palaces, historic dioceses and unique villas in the center or close to the old cities and on the shores of the stunning Adriatic.
Buying a historic palace is not just an investment in real estate - it's an investment in value that does not expire.
Zmajević Palace, due to its architectural authenticity, location and historical importance, represents one of the most desirable facilities for investing in luxury tourism in Montenegro.
Today, the luxury real estate market in Montenegro is expanding. Projects like Porto Montenegro in Tivat, Lustice Bay or Portonovog in Kumbor have shown that international investors have a huge interest in authentic locations with history and character. However, few facilities offer what Palata Zmajević offers - direct contact with cultural heritage and Mediterranean identity.
The potential uses of this palace are numerous:
- luxurious boutique hotel with several exclusive suites and a private pier,
- private residence for the collector or family looking for a unique home in Boca,
- cultural space – gallery, museum, or embassy of art and history of Perast,
- or a combination of the above, with a discreet inclusion in the luxury tourism sector.
With carefully planned reconstruction and compliance with conservation guidelines, Palata Zmajević can become one of the most prestigious addresses on the Adriatic, a combination of the past and modern comfort.
Luxury real estate in Montenegro - a rising market
Today, Montenegro is among the most attractive destinations for investors in luxury real estate.
Thanks to a stable tax system, competitive rates (e.g. VAT 21%), as well as simple procedures for foreign investors, the country is positioned as “"new riviera" of Europe.
From coastal cities, Bay of Kotor is a jewel - a UNESCO protected bay with incredible landscapes and authentic architectural heritage. The luxury segment of the market is recording constant growth in value: the demand for old stone houses, villas and palaces in Perast, Prčnje and Kotor has increased manifold in the last ten years.
Investors from Switzerland, Italy, Germany, the UAE and the USA recognize that Montenegro offers what rarely any European destination can: authentic Mediterranean spirit, with the possibility of creating a modern luxury space in a historic building in untouched nature on the Adriatic coast.
Why invest in the Zmajević Palace in Perast, Montenegro
- Historical value - The palace is a protected cultural monument and an authentic example of Venetian Baroque, which gives it a timeless value.
- Location - Perast is one of the most beautiful and peaceful cities of the Adriatic, only 15 minutes' drive from Kotor and 30 minutes from Tivat and the international airport.
- A priceless view - the panoramic view of the islands of Gospa od Škrpjela and Sveti Đorđe makes every moment in the palace a picture to remember.
- Investment potential - the possibility of conversion into a luxury hotel, residence or cultural center.
- Exclusivity - rarely does a historical building of this caliber come on the market, especially with a documented genealogy of the Zmajević family.
Buying this palace means joining the ranks of those who own history – not just squares, but identity, symbol and heritage.
Palaces as a new symbol of luxury
In the world of luxury investments, trends change - but authenticity value remains unchanged. While many look for luxury in contemporary villas and futuristic complexes, the most experienced investors know that true value lies in the past.
Historic palaces like Zmajević offer something that new buildings cannot: story. A story about family, culture, time, art. In such spaces, luxury is not in the material, but in the spirit that is felt in every stone.
That's why they were restored today. villas and palaces in Dubrovnik, Venice or Portofino among the most sought-after and most expensive properties in the Mediterranean. Montenegro, with its authentic architectural fund, now stands side by side with those destinations.
Respectful renovation
The reconstruction of Palata Zmajević requires a professional approach, but also a vision. Reconstruction of Zmajević Palace it was performed in the second half of the first decade of the XXI century. Fortunately, Montenegro has a clear legislative framework and experts who monitor cultural heritage restoration projects. By using traditional materials, such as local stone, lime and wood, with modern technology of interior adaptation, it is possible combine authenticity and modern comfort.
Many investors today are looking for just such a balance - a place that exudes history, but offers luxurious facilities: a spa area, a wine cellar, a private library, an elevator discreetly built into an old stone tower, or underfloor heating behind stone walls older than three centuries.
Palata Zmajević provides exactly that - the possibility of creating luxury that has a soul.
Montenegro - a new address for the world's elite
In recent years, Montenegro has attracted more and more high-profile investors, becoming the investment hot spot of the super rich (The Times) .
Projects like Porto Montenegro, Portonovi i Lustica Bay they brought a new standard of luxury, but also drew attention to authentic locations such as Perast and Kotor.
Thanks to its location, natural beauty, tax benefits and investment security, the country is positioned as “Monaco of the Adriatic” – elegant, discreet and exclusive.
Zmajević Palace fits perfectly into that narrative. She is a blend of history and modern luxury, ideal for the investor who is not only looking for profit, but also value, identity and prestige.
An inheritance that is not for sale - except once in a lifetime
An opportunity like this rarely comes along in the luxury real estate market.
Zmajevic Palace is not just a building - it is story about Montenegro, about the family that shaped her identity, about the time when Boca and Venice shared the same horizon, and about the sea that still unites generations today.
For the investor who understands the importance of history, aesthetics and location, purchase of Zmajević Palace means more than ownership - it is heritage that is preserved and transmitted.
If you are looking for a place where luxury is not measured by square meters, but by spirit and history, Perast i Zmajevic Palace are the right choice.
Sources:
Living like a nobleman: The highly profitable trend of restoring historic buildings, El Pais
Montenegro, the hot new playground for the super-rich, The Times
Palazzo Zmajevic, Sotheby's Realty
Lançois Doval, a website specializing in unique properties
Zmajević, Andrija, Montenegrin Academy of Sciences and Arts
Andrija Zmajević, Croatian encyclopedia
Who were the Zmajevics, the knights of the golden age of Boka and Perast
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