David Margason, the CEO of Porto Montenegro, emphasized that small countries like Montenegro, which seek high-value economic activities with minimal land use and low impact on physical infrastructure, should reconsider economic citizenship schemes in light of Malta’s recent decision and the EU’s response to it.
He noted that Montenegro’s economic citizenship program had been very successful, aiding the development efforts of their company by enhancing the attractiveness of real estate investments, particularly in less appealing locations within Porto Montenegro, such as Boka Place. This program has also enabled the development of mixed-use projects that bolster tourism.
Margason pointed out that the program attracted globally experienced, highly educated, successful, and entrepreneurial individuals to Tivat and Montenegro. These individuals are already contributing to further economic development through their business activities based in Tivat, fundamentally connected to Montenegro. It’s important to highlight that these individuals rarely choose to settle permanently in Montenegro; instead, they spend time as visitors, primarily engaging with their investments in the country.
How do you view the recent decision by the EU’s highest court allowing Malta to continue granting citizenship to wealthy investors? What implications might this have for Montenegro?
This decision appears to reflect the EU’s acknowledgment that member states should have the autonomy to determine certain policies, including economic citizenship. This could mean that the EU should not exert negative pressure on countries actively pursuing EU membership, like Montenegro, to refrain from adopting such economic development policies if they choose to implement them. However, strict oversight of these schemes and applicant approvals will undoubtedly be required.
Do you believe Montenegro should reconsider reintroducing its investment citizenship program in light of this court ruling?
Such schemes can be effective tools for economic development, particularly in attracting foreign direct investment and skilled professionals from around the globe. Any reintroduced program should be carefully designed to minimize risks of negative impacts while maximizing economic and social benefits. I believe that a small country like Montenegro, which seeks high-value economic activities with minimal land use and low impact on infrastructure, should explore these schemes in the context of Malta’s decision and the EU’s reaction.
What role do you see “golden visas” playing in the economic development of small countries like Montenegro?
Golden visas allow foreigners to reside in a country and enjoy economic, social, and environmental benefits without granting them the right to vote, which is legally difficult to restrict for these economically-driven new citizens. Citizenship, however, provides much broader access to regional or global mobility and social integration, which may be a more significant factor in the appeal and success of citizenship by investment (CBI) programs than merely residency rights. If not tied to real estate investment, any such system could lead to negative impacts on local real estate markets, particularly with price surges due to reduced supply.
How effective was the previous Montenegrin citizenship by investment program in attracting foreign investment and promoting economic development, specifically for Adriatic Marinas? What concrete benefits did it bring to your company and the tourism sector?
Overall, the CBI program in Montenegro was very successful and beneficial for our company’s development efforts. It increased the attractiveness of real estate investments, particularly in less desirable locations within Porto Montenegro, such as Boka Place. This allowed for the faster development of tourism-enhancing mixed-use projects than would have otherwise been possible, facilitating the progress of the economic citizenship scheme during a challenging period for the country, such as the COVID-19 pandemic.
It provided stability for development decisions in an increasingly unstable world. Furthermore, it attracted globally experienced, highly educated, successful, and entrepreneurial individuals to Tivat and Montenegro, who are already generating further economic development through their business activities in the area. These individuals typically do not seek permanent residence but rather spend time as visitors, focusing primarily on their investments in the country.
