Montenegro Citizenship Program

Dr Hussain Farooq
Sep 3, 2018 · 7 min read
Porto Montenegro

This article is written by Dr. Hussain Farooq, President of HF Corporation, a citizenship advisory firm which advises its discerning clientele on the global citizenship programs and constantly monitors the development of such programs around the globe, in addition to publishing one of the most comprehensive rankings of citizenship programs. Author, or the firm, could be reached at ‘info@hfcorporation.co’.

Chic and Investment-friendly with an award-winning marina — this Balkan country is fast becoming the new lifestyle & investment destination for the world’s wealthy.

Montenegro Citizenship Program, also known as Special Investor Program, is designed to offer citizenship to non-EU nationals who will make qualified investments in to the country. The program is capped at 2,000 applications and will be run for a limited period of three (3) years. Government of Montenegro, on 26 July 2018, announced plans to launch its Special Investor Program and, on 22 November 2018, set up the criteria for admission of persons under this program.

The Government intends to start accepting applications, under this program, soon.

Montenegro also ran a similar program, in the past, allowing the established experts or investors of undoubted international reputation to acquire Montenegrin citizenship upon making a donation or by investing in Montenegrin economy. The program was, later, put on hold and the current administration carefully analysed the(re)launching of the program.

The qualifying investment requirements, announced by the Government, are as under:

  1. Contribution (donation) of EUR 100,000 to a Government Fund, plus, investment of EUR 250,000 in approved development projects in underdeveloped areas of Montenegro;

OR

2. Contribution (donation) of EUR 100,000 to a Government Fund, plus, investment of EUR 450,000 in approved development projects in developed areas of Montenegro.

Additional fees may include government processing fees (EUR 15,000 for the main applicant, EUR 10,000 for each additional dependent up to a family of four, and EUR 50,000 for each dependent afterwards), and professional fees.

Required Documents:

The following documents must be enclosed with the application , for the main applicant and qualified dependent family members. The list, mentioned below, is just a preliminary list and additional documents could also be asked for by the competent authority:

- Certified copy of passport and identity card;

- Birth certificate;

- Marriage certificate;

- Insurance policies in force in Montenegro, covering health insurance;

- Certificates proving that they have no contagious diseases, issued in accordance with the regulations of the applicant’s country of nationality;

- Evidence of source of funds and wealth.

Montenegrin Passport:

Passport of Montenegro is well regarded around the world, and allows visa-free travel to more than 110 countries and territories, including the European Schengen Area, Russia, Brazil, Bulgaria, Cyprus, Romania, Croatia, Turkey, Georgia, United Arab Emirates, Hong Kong, and Singapore among others.

The country is a strong candidate for joining the European Union (EU).

The transition of Montenegro’s economy to a market system has been going on very well. Montenegro has emerged on the global map as an investment-friendly destination.

The recognition of the need to remove impediments, by the Government of Montenegro, in order to remain competitive and open the economy to foreign investors has been duly recognized by the institutional investors and financial institutions. Privatization of banking and telecommunication has been an important step in opening the economy.

Several real estate projects are in developmental phase in Montenegro and some have already been developed. Development of an award-winning port, Porto Montenegro, is also a significant step. The diversity of the investor groups, behind these developmental projects, clearly demonstrates that institutional and large-scale investors see a great potential in Montenegro’s real estate landscape.

Montenegro has become the new hot-spot for smart investors.

An enticing location — a passport to luxury.

Porto Montenegro, once the main base for Austro-Hungarian navy, is now an award-winning marina. According to a report compiled by Bloomberg, Montenegro was among the top-20 countries, between July 23 and July 27, 2018, in terms of number of yachts in its waters leaving behind Australia, Malta, U.A.E., and the Bahamas — while giving a close competition to Monaco.

SOURCE: IHS, Bloomberg Vessel tracking services.

Lustica Bay by Orascom, the company behind the renowned Andermatt resort in Switzerland, in partnership with the Montenegrin government and the announcement of partnership of Lustica Bay with The Chedi to set-up the second European hotel of the Chedi’s luxury brand; launch of the Capital Plaza which is supposedly the largest mixed use real-estate development in Podgorica, Montenegro’s capital, by the Abu Dhabi Financial Group; and Portonivi by Azmont Investments, an Azerbaijani consortium, which will also feature the One & Only’s first resort in Europe are some of other few notable foreign investment projects in the country. A couple of other projects, which are still in their initial phases, are Plavi Horizonti by Qatari Diar and Auberge Montenegro Resort by Singature Investment Montenegro.

Montenegró proclaimed its independence on 3rd June 2006 through a referendum thereby dissolving the State Union of Serbia and Montenegro. The country a member of the UN, the World Trade Organisation, the Organisation for Security and Co-operation in Europe, the Council of Europe, the Central European Free Trade Agreement and a founding member of the Union for the Mediterranean.

Montenegro officially joined the NATO on June 05, 2017 thus becoming the 29th member of this alliance.

The country is a a strong candidate for joining the European Union (EU), and is often dubbed as the front-runner of EU accession.

Montenegro on its European Path. Source: EU data

The country uses Euro as its currency.

Montenegro — Your Passport to Luxury, a comprehensive guide by HF Corporation.

Tax-Friendly Environment:

Montenegro has signed 42 treaties with various countries on income and property, which regulate double taxing.

With 9% corporate profit tax rate companies operating in Montenegro enjoy not only a business friendly environment but also a low tax burden, thus maximizing their operational profit.

• Annual real-estate tax : 0.25–1% (limited tax exemptions exist for construction companies)

• Property Transfer tax : 3%

• VAT : 21%. In certain cases, a possibility of a refund of VAT, paid on the first sale of the property, is also possible if the property is being used for business purposes. Reduced rate of 7% VAT applies on certain goods and services.

• Personal Income tax : 9%, and 11%

(Salary paid to an employee of an employee of a start-up company (except for businesses in agriculture, transport, shipbuilding, steel and fishery sectors) is tax-exempt for eight years.

• Corporate Profit tax : 9%

• Withholding tax : 9%

Favorable tax regime, equal treatment of the foreign investors by law and presence of double tax treaties with different countries are some of the features that add to the investors’ confidence.

The above mentioned information does not constitute a formal tax advice. Please consult a professional tax advisor for any tax-related matters.

Tourism:

The country’s coastline is one of the Europe’s most spectacular seaside scenery. In recent years, tourism in Montenegro has begun to boom, and Montenegro is being re-discovered by tourists from around the globe. Two UNESCO World Heritage sites are located in Montenegro: the Old Town of Kotor as a cultural heritage and Durmitor National Park as a natural heritage.

With two international airports, Podgorica and Tivat, and one nearby in Croatia, Dubrovnik (Ćilipi), and flight connections by British EasyJet from London, Russian Pobeda and AirAzur, FlyDubai from Dubai, Turkish Airlines from Istanbul and other European airlines — Montenegro is an accessible destination.

Whether someone wants to park a yacht in Montenegrin waters, or wants to enjoy the spectacular scenery; this beautiful country would not disappoint the tourist.

Foreign Investments and Infrastructure Development:

Foreign investors in Montenegro are guaranteed national treatment by law. The government is taking major measures to attract foreign investment and tourism to the country.

Because of the boosting tourism industry, bright chances of the country’s accession to the EU, there is some serious infrastructure development going on in the country. Shopping malls, marinas, new roads are being constructed fast. Investors have begun to tap the potential of this country.

Construction of the Bar-Boljari, the largest road development in Montenegro, by the China Road and Bridge Cooperation, is a striking example. (Image Credit: Pobjeda)

Smokovac- Matesevo is another road project where the loan is provided by the Chinese Exim bank.

Residence in Montenegro:

The country is not just becoming a tourism hotspot, it also offers a great destination for relocation. The families who want to move to this scenic country, and get their children educated from there, won’t be disappointed by the likes of internationals schools of KSI, QSI and a couple of other international schools. English is also widely spoken in the country.

Apart from the luxury real estate developments, the country also offers affordable residence options. Some developers have built really great mini-condos, and apartments which can be a great purchase for new residents and investors alike.

Further Read and References:

Montenegro Citizenship

Facebook.com/MontenegroCitizenship

Montenegro — the New Playground for Smart Investors

Montenegro — Chic and Investment Friendly

Montenegro — Citizenship and Investment Guide, Your Passport to Luxury

About the Author:

The article is written by Dr. Hussain Farooq, President & CEO of HF Corporation.

HF Corporation is a research-driven advisory firm that is specialised in providing services for residence and citizenship by investment programs, around the world, to high net worth individuals and families.

The firm has also runs a government-advisory practice that liaises with different governments to build up strategies that could help in bolstering foreign direct investments in their respective countries, through efficiently-structured investor programs — with a vision to assist the governments in implementing an outperforming approach.

For further information on investment in Montenegro or other countries, HF Corporation can be reached via email at

Email: info@hfcorporation.co

Copyrights Reserved © 2018.

Dr Hussain Farooq

Written by

Dr. Hussain Farooq is an acknowledged expert in the field of investor immigration and citizenship-by-investment. He is the President & CEO of HF Corporation.

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