New Rules for Obtaining Montenegro Residency: Thousands of Foreigners Risk Losing Their Status

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The Government of Montenegro has sharply changed the rules for obtaining a residence permit for entrepreneurs and property owners. Financial requirements for the value of real estate have been introduced. Moreover, foreigners who previously obtained a residence permit must also comply with the new standards, the portal Danas reports, citing RTCG.

Residence Permits Based on Real Estate: €200,000

The amendments to the law were approved during an online session. The key change is the introduction of a minimum financial threshold for real estate that can serve as grounds for obtaining a residence permit. Now the property must be worth at least €200,000. Foreigners who already have such a Montenegrin residence permit are given one year to bring their status into compliance with the new requirements.

Previously, no such threshold existed: the procedure was available after purchasing any property, regardless of its price. Because of this, housing in Montenegro was popular. Owners of inexpensive apartments are unlikely to find the means needed to acquire additional square meters for the required sum.

Requirements for Entrepreneurs: Employee Threshold

The amendments require that foreign managers and owners of more than 51% of a company’s capital must have at least three employees. Two of them must be Montenegrin citizens with valid insurance, employed full-time. A transition period of 180 days is provided to comply with the new rules.

The new requirements significantly increase the financial burden on entrepreneurs. For small projects, startups and remote workers, these conditions may be prohibitive, making the extension of a business-based residence permit virtually unattainable. The changes are expected to affect the Russian diaspora in Montenegro particularly strongly.

Reasons for the Changes: EU Accession and Violations

Work on the amendments lasted for about four years. Authorities emphasize that the document is aligned with European Union directives. Its adoption is necessary for the progress of EU accession negotiations and the closure of two key chapters — “Judiciary, Freedom and Security” and “Free Movement of Workers.”

Acting Director of the Directorate for Civil Status and Personal Documents Dragan Dašić noted that the changes were prompted by large-scale abuses. Primarily, this concerns shell companies and schemes for obtaining residence permits without real economic activity. Some foreigners created firms with a share capital of one euro and then applied for residence permits for the entire family.
The new rules are intended to prevent such cases. Resident status will be granted only to those who genuinely contribute to the economy and meet the requirements of the law.

Prospects: Large-Scale Relocation

Currently, around 30,000 foreigners hold permanent residence in Montenegro, and about 70,000 hold temporary residence. Approximately 40,000 of them are officially employed in the country, which underscores the importance of this group for the economy but also highlights the growing need for oversight.

The Ministry of Foreign Affairs, financial bodies, the tax administration and the police have intensified data exchange to prevent abuses of residence permits. Special attention is given to companies owned by foreign citizens that are deemed illiquid or inactive: if there are no grounds for continued stay, procedures for cancelling temporary residence permits are initiated.

The changes will affect not only Russians but also other foreign nationals. Among them are 13,500 Turkish citizens who hold residence permits or permanent residence in Montenegro. Many migrants will have to look for other legal grounds to remain in the country or leave the republic.