Montenegro has enacted substantial updates to its residency-by-investment program, introducing a minimum property value threshold that is anticipated to significantly impact foreign investors and long-term expatriates. As of 17 January 2026, the criteria for obtaining temporary residence permits through real estate ownership will mandate that properties possess a taxable value of at least €150,000, as determined by the country’s tax authority. This marks a departure from previous regulations that permitted residency based on properties of any value, aligning the program more closely with EU mobility standards and regulatory guidelines.
The revised legislation specifies that third-country nationals, which include non-EU, non-EEA, and non-Swiss citizens, must provide proof of ownership of qualifying properties, fulfill all associated tax obligations, and ensure that the taxable value meets or exceeds the stipulated minimum. The temporary residence permit issued under these conditions is valid for one year and can be renewed annually, provided the qualifying criteria are consistently met. Current permit holders who acquired residency prior to the implementation of these new rules will generally be allowed to renew their status, even if their property’s taxable value falls below the new threshold, thus providing some continuity for existing residents.
The updated residency framework also incorporates an annual minimum tax requirement for certain foreign-owned enterprises. Individuals who hold a majority stake in a Montenegrin company and seek residency through business activities must ensure their company pays at least €5,000 in tax and social contributions in the year before renewal. This measure aims to eliminate “zero-substance” entities that previously utilized permit systems without engaging in meaningful economic activity. However, citizens from EU member states and other exempt groups are not subject to this minimum tax requirement.
<pMarket responses to these reforms indicate that some foreign buyers and entrepreneurs are reassessing their intentions or contemplating exits due to the heightened entry barriers and increased compliance costs associated with the new regulations. This shift could lead to a temporary decrease in demand for lower-tier properties that previously attracted residency buyers, particularly those located inland or older units often valued below the threshold despite competitive asking prices.
The introduction of the €150,000 threshold offers greater clarity and predictability within Montenegro’s residency-by-investment program for serious investors and mobile individuals. By linking eligibility to an objectively assessed taxable value and formalizing minimum tax contributions for business-related applicants, the government aims to enhance the credibility and sustainability of its immigration policy. This change may ultimately increase Montenegro’s attractiveness over time to buyers and expatriates who prioritize legal certainty and adherence to broader European standards.
The revised rules also preserve avenues for long-term settlement: after holding a temporary permit for five continuous years, individuals may apply for permanent residence. Following an additional period of lawful residence, they may become eligible for naturalization, contingent upon meeting language, financial, and other statutory requirements. These long-term options continue to reinforce Montenegro’s appeal as a destination for residence diversification, lifestyle relocation, and deeper integration into Europe’s southeastern economic landscape.
