In 2020 and 2021, we saw several countries introduce special Programs for attracting digital nomads. In the Balkan region, Croatia was the first one to recognize the opportunity, mostly thanks to the initiative and energy of Jan De Jong, a Dutch entrepreneur living in Croatia since 2006. After a lot of “Yes, yes, Montenegro has the potential”, Montenegrin officials finally decided to hop on this train. So, now the main question is can Montenegro become a digital nomad hotspot.

Program for attracting digital nomads

After a months-long preparation and public discussion, the former Ministry of Public Affairs, Digital Society and Media (yes that was the full name of the Ministry) adopted the Program for Attracting Digital Nomads in late December 2021. The Program contains a strategic and legal framework, current state, and key challenges for implementation. In addition, the Program also contains an ambitious action plan for 2022. Mrs. Tamara Srzentić, the former Minister of Public Affairs, stated in the opening that the Program was thoroughly prepared. She also stated that she believes Montenegro can improve the ambiance for digital nomads overall. However, the strategic framework does not give us any specific clarifications but rather displays the compatibility of this Program with other strategic documents.

It’s also notable to say that Montenegro got a new Government in April of 2022. The number of ministries and their names have changed. And so far, the stance of the new Government about the digital nomads and the Program remains unclear. We certainly expect them to be aware of the potential this Program brings and to move forward with the institutional and legal changes that are needed for implementation.

Institutional and legal framework

The main challenge for the successful implementation of this Program is the legal framework. And it’s a good thing that the institutions recognize this and (hopefully) know which steps to take. So, the first legal condition is the change of the Law on Foreign Citizens. At the moment, you can only obtain a residence permit if you work in Montenegro, own a business or real estate, or get married to someone who has the permit or citizenship. This means that if you are just a digital nomad who wants to live in one country for six or nine months, you would need to go through one of the processes for the above-mentioned. 

The change in the Law on Foreign Citizens will allow a more liberal approach to the residency of digital nomads. The Montenegrin law will likely resemble the Croatian. Therefore, the main condition for digital nomad residency will be their proof that they are working for a foreign company or are a freelancer. In other words, you could not work for a Montenegrin company or open your own business in our country. The second condition will be proof of your salary, that is, proof that you have enough funds to live in Montenegro. The low cap will probably be set at €2-3,000.00 per month, which is much more than enough to live in Montenegro.

Another legal change, which is connected to the conditions in the previous paragraph is the change of the Law on Taxes. The Government wants to avoid taxing your income as a digital nomad since technically you will not be making that income in Montenegro. Hence the proof that you are working for a foreign company means you are not providing services to Montenegrin entities. Therefore, this implies you will not pay any taxes in Montenegro.

Let us tell you that Montenegro already is an attractive destination for digital nomads or any nomads whatsoever. Yes, some of the procedures are a bit tight now, but it is still easy to come to live in our country and obtain a resident permit.

Action Plan

The main parts of the action plan are improving the conditions for attracting digital nomads, increasing the available online information, and promoting Montenegro as a nomad destination. So, besides the law changes, the Program predicts better online information availability. And we certainly believe that is a great idea, which is one of the reasons for the existence of Like a Bird website. We are bringing all relevant information, not limited to digital nomads, but to every foreign citizen planning to move to Montenegro. We also believe we can help with the promotion of Montenegro. However, we also expect that the National Tourist Board and other institutions and private companies will do a good job in this area.

The bottom line

So, the bottom line is that it comes down to the changes in the laws on foreign nationals and personal taxes. And although we believe this Program will be successfully implemented, the author of this text is too familiar with the procedures for changing a certain law. The change itself may not be the problem, but the timeline can be. The Program states that the deadline for these changes is in the second quarter of 2022, so we will closely monitor all updates and write new posts about this.

Conclusion

Now you may ask yourself, will Montenegro adopt these changes? And more importantly, can Montenegro become an attractive destination for digital nomads? Well, let us tell you that Montenegro is already an attractive destination for digital nomads or any nomads whatsoever. Yes, some of the procedures are a bit tight now, but it is still easy to come to live in our country and obtain a resident permit. The greatest proof of this is many foreign nationals and families that own a business, and are living and working in or from Montenegro. So, regardless of the status of the Program, we invite you to find out more about Montenegro, maybe come for a little visit and decide if this is the right destination for you.