Montenegro has set a minimum threshold of €150,000 for obtaining a residence permit through the purchase of real estate.
An EU candidate country is introducing a structured system for obtaining residence permits based on real estate and a minimum tax threshold for foreign business owners.
Montenegro has overhauled its immigration system by amending the Law on Foreigners, effectively creating a structured pathway for obtaining residence permits based on real estate and imposing new tax obligations on foreign business owners.
The main change is a new minimum value threshold. Third-country nationals seeking temporary residence permits based on real estate ownership must now prove that their property has a taxable value of at least EUR 150,000, as determined by the tax office when assessing the property transfer tax.
This requirement formalizes the previously loosely regulated pathway that allowed foreigners to obtain residence permits through the purchase of real estate without a minimum value, giving it the characteristics of a genuine residence permit-by-investment program.
Under the new law, applicants must prove both ownership and actual use of the property, as well as payment of all property taxes. A residence permit granted on this basis is temporary, valid for one year and renewable, and does not grant the right to work or conduct business in Montenegro.
The new property value threshold is lower than the government's initial target of €200,000, set in the November 2025 amendments to the citizenship law. Following parliamentary debate, the final threshold was set at €150,000, potentially expanding the pool of potential investors.
Foreign citizens who received a residence permit based on real estate before the law came into force retain their rights and can renew their permits without meeting the new valuation requirement.
The standard path to Montenegrin citizenship requires 10 years of continuous legal residence: five years with a temporary permit, followed by five years with a permanent permit. However, Montenegro does not recognize dual citizenship.
The Pitfalls of Montenegro's Citizenship by Investment Program
A new pathway to residency for investors in Montenegro emerged following the closure of the now-defunct Citizenship by Investment Program (CIP).
Launched in 2019, the CIP offered Montenegrin citizenship in exchange for a combination of government donations and real estate investments: €450,000 for the development of coastal areas or capital projects, or €250,000 for the development of less-developed northern regions of the country, plus a €200,000 donation split between the state budget and the regional development fund.
By the end of 2022, the program had attracted approximately 1,100 applications, representing over €400 million in direct investment and budget contributions.
However, it quickly came under sustained pressure from the European Union, which has long been suspicious of citizenship by investment schemes, particularly in candidate countries. Ultimately, the program was closed at the end of 2022.
EU Membership Issue
Montenegro has been participating in EU accession negotiations since 2012 and is considered the front-runner among Western Balkan candidates.
Prime Minister Milojko Spajić recently stated that Montenegro expects to join the Union by 2028, opposing Serbian President Aleksandar Vučić's proposal to simultaneously admit all Western Balkan countries.
Therefore, the new mechanism for acquiring real estate in Montenegro could offer a relatively affordable entry point into what could soon become the EU's newest member state.
If you are planning to obtain a residence permit, invest in the economy of any country, open a business in the EU, or purchase real estate abroad, we invite you to a consultation with our company. During a personal online meeting, we will thoroughly examine your questions and create a step-by-step action plan for you.