Changes to the Law on Foreigners in Montenegro

Main Changes

Starting January 2026, Montenegro officially changed the Law on Foreigners. After months of announcements, numerous amendments, and limited, if not avoided, public discussion, the Parliament adopted the final version of the changes.

These changes affect:

• property owners who are applying for the residence permit for the first time or renewing it; and
• sole entrepreneurs and company CEOs who own more than 51% of an LLC, but only for the renewal of the residence permit.

Notably, these changes do not apply to citizens of the EU, Iceland, Lichtenstein, Norway, or Switzerland.

Property Owners

From now on, foreigners applying for temporary residence in Montenegro based on property ownership must provide proof that their property is worth at least €150,000. Note, however, that this value doesn’t refer to the purchase price, but to the value determined by the local tax authority.

In addition, applicants must submit proof from the tax authority that the property taxes are paid. These requirements apply to both first-time applications and to every renewal of a residence permit based on property ownership.

As mentioned above, the €150,000 value threshold doesn’t apply to citizens of the EU, Iceland, Liechtenstein, Norway, or Switzerland. However, the proof that the taxes are paid applies to everyone.

Company Owners and CEOs 

Another significant change refers to the residence permit renewal for sole entrepreneurs and CEOs who own more than 51% of their companies. If you are the CEO of your own company or a sole entrepreneur, you are now required to have paid at least €5,000 in salary taxes and social contributions during the previous residency year. This requirement can be met by awarding yourself a monthly salary of around €1,650. Or, if your business needs employees, employing staff and paying relevant taxes and contributions.

If you are thinking of starting a company and applying for the first time for a residence permit in Montenegro, there are no changes in the requirements. The minimal founding capital for an LLC is still €1.00 and the documentation requirements are not changed. You can read about how to obtain a residence permit in Montenegro here.

As with the property-based residency, this rule doesn’t apply to EU, Iceland, Lichtenstein, Norway, or Switzerland citizens. It also doesn’t apply to CEOs who own less than 51% of a company. Additionally, if by any case, your residency expires, and you apply like it’s your first time, this rule wouldn’t apply to you as well.

Finally, majority owner CEOs are no longer required to submit proof of education (a diploma) for obtaining or renewing a residence permit.

IT and Healthcare Workers and Household Helpers 

Not all changes to the Law are about stricter requirements. There are some relaxations as well.

For IT and healthcare workers, it is now possible to obtain a residence and work permit valid for up to three years. Therefore, IT and healthcare companies cab secure longer-term residence permits for foreign employees.

In addition, it’s now also possible to hire a household helper from abroad. Such persons can obtain a residence permit based on work, even if they are employed directly by a private individual, rather than a company. This residence permit is granted for one year, like a standard work and residence permit.

Common-Law Marriage

The Law also expands family reunification options to common-law marriage. Partners in a life partnership who are not officially married can now apply for a family reunification residence permit. This possibility is no longer limited to married spouses. The requirements are the same as for standard family reunification residence permit, with the obligation to prove that the partners are indeed in a life partnership.

Permanent Residency 

One can easily see that Montenegro has decided to try to fill the budget as much as possible, considering the looming fiscal deficit. Thus, the emphasis on proof of paid taxes in the new rules. Which make sense. The same requirements now apply to permanent residency applicants. In addition to the usual documentation, applicants must provide proof that all taxes due in Montenegro have been paid.

Online Application for a Residence Permit

The Law also introduces the possibility of submitting residence permit applications online, similar to Serbia and Croatia. This would include scanning of all of the documents (which the police do anyway when you apply). If the residency is approved, you’d still have to personally visit the police office for fingerprints, a photograph, and a signature. However, we still don’t know when this will actually start, so for now, we still wait in line at the MUP.

Should You Take Action? 

Depending on your residency type, long-term plans and strategy, it’s advisable to review if and how these changes affect you and if there are any steps you need to take. If you are a property owner, check your property value and ensure you’ve paid all the property taxes. If you are a company owner and a CEO, consider your residence permit renewal timing and your goals in Montenegro, to decide if and how you want to comply with the new rules.

We can advise you with strategic planning and compliance strategy for your residence permit renewals, whether it’s by property ownership or being a CEO. We can also help you with closing a business if you decide to leave Montenegro. Feel free to schedule a free consultation.

My Personal Opinion  

As a local who was 18 years old when Montenegro gained independence, I fully understand the importance of foreigners to this country. Investors, property buyers, small business owners, expats, and tourists have all played a key role in building Montenegro into a financially independent country and an attractive destination. Unfortunately, as a future EU member, Montenegro must align with the bureaucrats’ rules, even if it’s short-sighted terms of economic impact.

And I can tell you this, when the first change were brought up, including the idea to make it mandatory for foreigners to employ three people, even if they don’t need them, no one thought about the negative impact. No studies or analysis were conducted, and no estimations were made about the capital outflows or the reputational damage for Montenegro. And there still aren’t any analysis. The only numbers that were thrown around were “the number of foreigners” and “the EU said…”.

That’s why already in July 2025, we have gathered another six service providers, i.e. our competitors and colleagues, and made several initiatives to Parliament members to indicate the possible reputational and economic risks of the proposed laws. Following meetings in September, we’ve succeeded in explaining that it was possible to do some things differently and exclude shadow companies without making it harder for everyone else to obtain or keep residency. We didn’t use the media, as we thought it’s better to just talk to the people who will be deciding on these proposals.

Come December 2025, amendments were added and articles were changed, with the final version of the Law as described here. The Government and the Parliament understood that it’s in Montenegro’s interest to have a more balance approach. We now have important changes for the first time in a few years, and these can at least be a good budget boost for Montenegro. I surely am glad that we now have a requirement that can just be paid, without needing to go through needless processes of hiring people who you don’t need.

Ultimately, Montenegro remains one of the most attractive “Plan B” and lifestyle destinations in Europe. Residency is still relatively easy to obtain, although more expensive to maintain, but still can be had without actually living in the country. Combined with low taxes, safety, and a relaxed lifestyle, Montenegro continues to attract strong interest, particularly from the USA, the UK and Western Europe nationals. In any case, we are committed to our philosophy – not to sell the destination, but to provide relevant information to clients who can decide if Montenegro is a compatible destination for them.