Law on Foreigners implemented

31.12.2025 - new rules explained.

Amendments to the Law on Foreigners – Adopted 31 December2025

Montenegro adopted significant amendments to the Law on Foreigners. In general, the adopted law applies stricter and more predictable rules while expanding certain residence opportunities in a positive way. EU citizens benefit from expanded rights and exemptions, while third‑country nationals face higher entry and continuation thresholds.

Under the new Law on Foreigners, residence rules were applied with broader digitalization. The amended law introduces a more structured EU‑aligned system with clearer legal bases and standardized procedures. Authorities now apply uniform documentation checks and stricter timelines, reducing uncertainty but increasing compliance requirements for applicants.

EU CITIZENS
A major structural change introduced by the amended law is the creation of a separate legal regime for citizens of the European Union, Iceland, Norway, Liechtenstein, or Switzerland, as well as their family members. Under the previous framework, EU citizens were largely regulated together with third‑country nationals. The new law grants EU citizens broader rights and explicit tax thresholdexemptions.

Tax compliance has become a central condition of lawful residence. The amended law requires mandatory verification of tax and social‑contribution payments. If residence permit is granted to executive directors with company ownership (51% or more of shares), a minimal annual tax payment of EUR 5.000 has been introduced as a condition for residence permit extension.

This requirement does not apply if:
-the shareholder owns less than 51% shares of the company.
-the shareholder is a citizen of the EU, Iceland,Norway, Liechtenstein, or Switzerland.
-the shareholder holds permanent residence.
-if the shareholder holds residence permit on another basis (such as family reunification).

This exemption relates particularly to minimum 5.000 EUR tax and social‑contribution requirements rule, not generically to all tax obligations.

Furthermore, full-time employment is the default rule for the extension of standard employment-based permits. By way of exception, part-time employment is permitted only where the foreign national holds the position of executive director with multiple employers, in accordance with labour regulations.

A key procedural change is the introduction of a uniform deadline for temporary prolongation as applications must be submitted at least 30 days before the expiration of the existing permit, and for permanent residency (extension of the permit is each 5 years), 60 days.

Failure to meet tax obligations or deadlines can result in refusal of prolongation, making advance planning essential. Family members are not subject to minimum income tax requirements.

The amended law introduces clearer distinctions between different work‑based residence categories. These include the possibility for IT and healthcare companies to obtain work, and residence permits for their employees for an extended 3-year period (instead of the previous 1-year limit), with the possibility of a further 3-year period.

RESIDENCE THROUGH REAL ESTATE

The amended law introduces a minimum taxable property value of 150,000 EUR for third‑country nationals.

This requirement does not apply if:
-the owner is a citizen of the EU, Iceland, Norway, Liechtenstein, or Switzerland.
-foreign nationals who were granted temporary residence based on property ownership before the entry into force of the amendments remain subject to the previous legal regime for the purpose of permit prolongation..

Applicants must demonstrate ownership and actual use of the property, and all property tax obligations must be settled. Residence granted on this basis is strictly linked to property use and does not permit employment or business activities in Montenegro.

The amended law expands the definition of eligible family members compared to the previous framework, explicitly including same‑sex partners.

Disclaimer

This document provides general policy observations and recommendations based on publicly available draft legislation, professional experience, and comparative EU practices. It does not constitute legal advice, tax advice, or an official interpretation of Montenegrin law. Legislative texts may change, and practical implementation may differ from the current proposals. Individuals and companies should seek personalized legal advice before making decisions related to residency, investment, or business structuring in Montenegro. The authors do not accept responsibility for any actions taken based on the information contained herein.