Montenegro’s Law on Foreigners is currently undergoing meaningful reform. The Proposal for Amendments to the Law on Foreigners is now in the legislative process and brings several important updates—especially regarding the extension of temporary residence for foreign nationals who own more than 51% of a Montenegrin company and serve as its executive directors, as well as new rules for obtaining residence based on real estate ownership.
1. Extension of Temporary Residence for Company Owners and Executive Directors
Under the proposed changes, temporary residence and work permits for entrepreneurs and executive directors who are sole owners or majority shareholders (holding more than 51% of the company’s capital) may be granted, provided new statutory requirements are met.
A key condition is that the entrepreneur/company where the foreign national is sole owner or majority shareholder must employ at least three full-time employees, one of whom must be a Montenegrin citizen. Following the submission of the proposal to Parliament, the Government of Montenegro adopted amendments on 12 November 2025, introducing two notable changes: First to increases the requirement for local employment, from one Montenegrin citizen to two full-time Montenegrin employees. Second, to requires all existing entrepreneurs and executive directors who obtained their permits before the amended law enters into force to bring their business into full compliance within 180 days of the law becoming effective.
These amendment replaces the previous, more flexible system and is intended to target so-called “paper companies” that lack real economic substance.
2. Temporary Residence Based on Real Estate Ownership
The proposal also introduces new requirements for foreigners seeking temporary residence based on real estate ownership.
Applicants will now need to provide official proof of the property’s value, issued by the local authority responsible for property taxation. The amendments set a clear threshold:
the property must have a minimum assessed value of EUR 200,000.00, determined according to the local property tax decision.
This requirement is designed to:
- prevent misuse of residence rights,
- strengthen oversight,
- ensure consistency in application of the law, and
- encourage higher-value investment in Montenegro’s real estate market.
3. Status of the Amendments
These amendments have not yet been adopted and remain subject to parliamentary debate and potential further modification. We will continue to monitor all developments and provide timely updates to ensure our clients remain fully informed and able to comply with any new legal standards.
4. What This Means for Foreign Investors
Montenegro remains an attractive destination for international investors. However, the upcoming changes introduce stricter rules that may negatively affect applicants, particularly foreign small business owners, by imposing more demanding local employment and regulatory requirements.
For individuals and companies navigating these shifts, early preparation and proper legal support will be essential. KBP Legal is available to assist with all aspects of immigration, corporate governance, and regulatory compliance, ensuring your business operations in Montenegro continue smoothly and in line with the updated legal framework.
If you would like to stay ahead of upcoming regulatory requirements and plan your stay or business activities in Montenegro, feel free to contact us at info@kbplegal.me and follow our LinkedIn page and website for regular updates.
Ivan Pejović and Iva Rolović