The main point of coming to Sveti Stefan is to spend as much time horizontal as possible, with occasional breaks for a cooling dip. The water here gets deep quickly, as if the surrounding mountains couldn't be bothered adjusting their slope. The sands are pinkish and pebbly, but it's difficult to care about a stray rock in your bathers when you've got a jaw-dropping view of the famous island to squint at from behind your sunnies.
The uncrowded beach on the Budva side of the causeway belongs to the resort. If you don't fancy shelling out €100 for the day-use fee (ie you're not completely insane), the deckchairs on the other side of the causeway get cheaper the further along the beach you go, and there's plenty of rocky – but free – space near the end.