The Movement Europe Now (PES) amendment to the State Property Law aims to level the playing field for investors and spur new investments, announced its representative Vasilije Čarapić.
Speaking at a press conference, Čarapić highlighted that while some investors holding long-term leases can develop tourist complexes, apartments and other properties, those with 90-year leases do not currently have this option.
“To prevent any bias towards investors in tourist complexes over those investing in other industries, we propose this amendment. It allows lessees with leases up to 90 years, who develop structures, to seek government approval to transfer ownership of the structure, rather than the land, after the lease expires,” explained Čarapić.
He emphasized that the land remains state-owned, and any transfer of the structure requires government consent, primarily to enable Montenegro to potentially acquire the facility.
“This amendment aims to create equal opportunities, ensure uniform rights for all investors, and stimulate fresh investments not only in tourism but also in other sectors we aim to attract to Montenegro,” Čarapić stated.
He clarified that there is no intention to sell state-owned land through this amendment.
Čarapić underscored that the primary objective of the amendment is to attract investments, which he believes it will achieve.
Responding to concerns about whether these changes will advantage coastal investors who may later sell their properties, he specified that planned factories and facilities will be located in central and northern regions, not along the coast.
“These provisions apply only to major, long-term leases, not to shorter leases that municipalities and the government may grant. We aim to provide lessees of strategic capital investments over longer terms with the flexibility to execute robust business plans without concerns about post-lease expiration scenarios,” clarified Čarapić.
He added that investors will have the option to retain or transfer their businesses later on.
“Each structure developed under these provisions can significantly contribute to economic growth and must comply with the planning documentation stipulated in this law,” Čarapić concluded.
He also clarified that the underlying land beneath structures cannot be resold, and existing laws allowing for land sales for tourist villas are under review for potential revisions.
