Montenegro has enacted a new Law on Electronic Identification and Trust Services, which establishes the legal framework for digital identity wallets, qualified electronic signatures, and cross-border electronic transactions. Officially published on 16 July 2026, this law aligns Montenegro with the European Union’s revised eIDAS 2 framework and represents a significant reform in the country’s EU accession efforts.
The legislation aims to facilitate broader economic functions beyond merely storing personal documents on mobile devices. It sets forth regulations that grant legal recognition to electronic identities, signatures, corporate seals, timestamps, registered digital deliveries, website-authentication certificates, and electronically verified attributes.
For businesses in Montenegro, this law may streamline processes such as company incorporation, contract signing, public procurement submissions, bank transaction authorizations, and validation of professional qualifications without the need for physical document exchanges. For the government, it provides a pathway to reduce reliance on physical counters and duplicate records by leveraging verified data.
The core component of this initiative is the digital identity wallet, which will be offered voluntarily and at no cost to citizens. This wallet is designed to hold or verify various attributes related to driving licenses, health or social-insurance records, diplomas, and professional qualifications. Users will have control over the information shared during transactions, allowing for selective disclosure—such as verifying age without revealing full identity documents—and monitoring which institutions access their data.
This principle of selective disclosure is crucial in enhancing security. A digital identity system that merely replicates physical identity cards could expose users to risks of data breaches. The European model seeks to empower users with greater control over their personal information while ensuring robust authentication for high-value transactions.
The initial sectors likely to benefit from this digital identification framework include banking, insurance, telecommunications, utilities, and professional services. These industries frequently need to identify customers and verify documents while ensuring proper consent has been obtained. Enhanced digital identification can lower onboarding costs and reduce fraud while strengthening the evidentiary value of electronically signed agreements.
While property transactions and corporate administration may also transition towards digital processes under this law, complete digitization will not occur solely due to its enactment. Existing land registers, notarial procedures, company records, tax systems, and municipal databases must be equipped to accept these new credentials. The effectiveness of the digital wallet will depend on the range of services integrated with it rather than simply the number of downloads by citizens.
Implementing this framework entails a more extensive effort than just passing the law. Government plans include approximately 40 implementing bylaws, with an allocation of about €11.58 million over three years for comprehensive implementation efforts. This includes establishing a new organizational unit within the Ministry of Public Administration and enhancing capabilities at the Cybersecurity Agency and state CIRT. Full integration into the European wallet ecosystem is targeted for around 2028.
On 17 July, Montenegro signed an agreement with Kosovo for mutual recognition of qualified trust services and electronic identification systems. This agreement builds on existing arrangements with other regions in the Western Balkans. For companies operating across these jurisdictions, mutual recognition can offer immediate advantages; contracts executed in Podgorica can be recognized in other areas without requiring parallel paper documentation.
A potential challenge lies in ensuring that public agencies do not continue to request scanned documents or in-person verifications despite advancements in identity technology. It is essential to differentiate between digital identity systems and digital surveillance; citizens will require assurances regarding data minimization practices, security certifications, transaction records, and remedies for compromised identities or unauthorized access.
Businesses are advised not to postpone evaluating their systems until the wallet’s full rollout. Companies should consider revising contracts, customer onboarding processes, electronic archives, authorization frameworks, and data retention policies to accommodate various levels of electronic identification and signatures. Early adaptation can lead to reduced paperwork; conversely, merely adding digital signatures to existing workflows may not yield substantial cost savings.
The new law equips Montenegro with a foundational legal structure for a European digital state. Its effectiveness will ultimately be tested when citizens can verify their identities once and complete transactions without needing additional verification at physical locations.
