Foreign investors and associations representing temporary residents in Montenegro, mainly from Germany and Russia, warn that the proposed amendments to the Law on Foreigners could create serious business barriers. Many foreign managers and small entrepreneurs may be forced to leave the country, while thousands of small business owners—who contribute significantly to the Montenegrin economy and state budget—might not meet the new requirements.
The most problematic provisions include the requirement that companies must employ at least three people, with two being Montenegrin citizens, and that foreigners must own property worth at least €200,000 to qualify for residence. Executive directors of foreign companies are allowed residence for only three years, and the application process is not fully digitalized, creating legal uncertainty.
According to a survey conducted by Stefan Ajković, representing nearly 1,000 Russian investors and residents, 71% would not meet the new requirements and may have to leave Montenegro. This group has invested around €138 million in real estate, equipment, and business operations, and paid over €14 million in taxes in 2024 alone. Many of their children are fully integrated into Montenegrin schools.
Ajković warns that enforcing the law could result in a €10–12 million annual budget loss, empty properties in Budva, Kotor, Tivat, Herceg Novi, and Bar, and the closure of thousands of small businesses. Restrictions on property use and residence permits would worsen the situation.
The Foreign Investors Council criticized the three-year limit for foreign executive directors, noting it disrupts legal continuity and management of companies. They recommend extending the possibility to all executive directors, clarifying tax compliance rules, and digitalizing the application process.
The German-Montenegrin Business Club (DMW) also called the law too rigid and inconsistent with EU norms, warning that it could harm investment climate and isolate Montenegro from foreign professionals.
Foreign residents expressed strong concerns about forced relocation, legal uncertainty, and the emotional impact on their children, emphasizing that many consider Montenegro their true home.
