Residence Permit in Montenegro 2026: The €150,000 Threshold and Taxes Instead of Hiring Employees
The Government of Montenegro has introduced final amendments to the “Law on Foreigners” for obtaining or renewing a residence permit. The autumn proposals that caused panic among expats have been softened. We explain how to obtain and renew a residence permit (boravak).
The Government of Montenegro has finalized amendments to the "Law on Foreigners" regarding the acquisition and renewal of temporary residence permits. The initial proposals from last autumn, which caused concern among the expat community, have been moderated. Here is everything you need to know about obtaining and renewing your residence permit (boravak) in 2026, the new real estate price thresholds, and the tax obligations for company owners.
By the end of 2025, Milojko Spajić’s government revised the strict draft law. The main takeaway: bureaucracy has been replaced by financial requirements. Montenegro is pivoting away from mass "cheap" immigration in favor of affluent residents and digital nomads.
Summary of Key Changes:
1. Residence Permit (TRP) via Real Estate: Minimum Value of €150,000
The most discussed change concerns Article 56 of the law. The era of buying an inexpensive studio or a small house in the mountains solely for legalization is over.
New Purchase Conditions:
Minimum Threshold: Temporary Residence Permits (TRP) are now granted based on owning real estate with an assessed value of no less than €150,000.
Ownership Share: An individual must own at least a 1/2 (50%) share of the property, and the value of that share must proportionally meet the threshold (e.g., a property owned by two people must be valued at at least €300,000).
Proof of Value: The price stated in the sales contract is no longer the primary evidence. Value is confirmed by an official decision from the Tax Administration (rješenje o porezu na promet nepokretnosti). This measure is designed to prevent artificial price inflation in transactions.
What happens to current residents? The government has protected the rights of existing residents with a grandfather clause:
If you obtained your residence permit before the law came into force, the old rules apply to your renewal. You do not need to increase your property investment to €150,000.
If you are applying for the first time in 2026, the €150,000 requirement applies.
Note: These price thresholds do not apply to citizens of the EU, Norway, Switzerland, Iceland, and Liechtenstein.
The earlier draft proposed strict hiring criteria, requiring executive directors to employ at least three staff members, including one Montenegrin citizen. In the final version, this was replaced by a financial threshold, shifting the focus toward a real contribution to the country’s tax system.
New Scheme for Directors (D.O.O.): To renew a residence permit as a director of your own company, you must meet the following financial condition:
The company must have paid taxes and social contributions totaling no less than €5,000 per year.
This averages out to approximately €417 per month. This acts as a legal "fee" for residency status without the need for high-intensity business activity or complex HR reporting. For freelancers operating through an LLC (D.O.O.) or as an Entrepreneur (IP), this simplifies life, albeit at a higher cost.
IMPORTANT: The 2026 Exception (Grace Period)According to transitional provisions, the requirement to have paid €5,000 in the previous calendar year does not apply until January 1, 2027, for:
Directors who own at least 51% of the share capital.
Individual Entrepreneurs (Preduzetnik).
What does this mean in practice? If you are renewing your "business boravak" during 2026, you do not need to prove you paid €5,000 in taxes for 2025. However, 2026 is your preparation year: to renew in 2027, you must ensure your tax payments for the current year (2026) meet the €5,000 total.
Note: These financial requirements do not apply to citizens of the EU, Norway, Switzerland, Iceland, and Liechtenstein — no such conditions exist for them.
3. IT Specialists and Doctors: Relaxed Conditions
To address the shortage of qualified personnel, barriers for IT professionals and medical staff have been lowered.
No Salary Cap: The previous proposal required a salary three times the national average (approx. €2,500–€3,000 net). This has been removed.
Standard Contracts: A standard labor contract for a minimum of 12 months is sufficient.
Salaries: Must comply with the Labor Law (€600 for medium-level qualifications, €800 for higher-level qualifications).
PRP Path: IT specialists and doctors are exempt from the "3-year reset" rule, allowing them to renew continuously and apply for Permanent Residency (PRP) after 5 years.
When do the changes take effect?
All the above changes have been voted on by Parliament, published in the Official Gazette of Montenegro (Službeni list CG), and have entered into full legal force. The Ministry of Internal Affairs (MUP) is already processing documents and issuing decisions based on the new version of the law.
Expert Recommendations:
For those renewing: Ensure your accounting correctly reflects tax payments (for directors) and verify you have the tax assessment for your property (for owners).
For those planning a move: Be aware that financial requirements are now transparent but significantly higher.
Montenegro remains an open country, but it is now clearly focused on those ready to invest in its economy and infrastructure on a long-term basis.
