The Foreign Investors Council, as well as groups that bring together foreigners with temporary residence in Montenegro from Germany and Russia, believe that the new restrictions on the extension of stay from the draft law on foreigners will be significant business barriers, that many investors and foreign managers will have to leave the country, and that the new conditions for stay will not be met by several thousand foreigners, small businessmen, who make up a significant part of the Montenegrin economy, but also from whom a significant part of the state budget is filled.
In statements to "Vijesti" they call on the Ministry of Internal Affairs, as well as some economic departments in the Government, to reconsider the draft law sent to the Parliament and their comments submitted during and after the public debate.
"Vijesti" sent questions about the demands of these groups to the Ministry of Internal Affairs and the Ministry of Economic Development, but they are still waiting for answers.
The most problematic items for small business owners and foreign citizens residing in Montenegro are that their companies must have at least three employees, two of whom must be Montenegrin citizens, and that they must have a real estate property in which they reside, which must be worth at least 200 thousand euros.
The Foreign Investment Council finds it most problematic that executive directors of foreign companies can reside in Montenegro for up to three years, that the documentation submission process is not sufficiently digitalized, and that some legal solutions are unclear and will cause problems in implementation.
Montenegrin citizen Stefan Ajkovic, a businessman from Budva who has lived and worked in Russia for several years, told "Vijesti" that he represents almost a thousand Russian small investors, businessmen and citizens who have lived in Montenegro for years and have temporary residence.
He conducted a survey with them, which was reviewed by "Vijesti", where 71 percent of respondents responded that they could not meet the new conditions for extending their stay from the draft Law on Foreigners and that they would have to leave Montenegro.
According to survey data, this group of Russian businessmen and citizens invested 138 million euros in Montenegro in the purchase of real estate, equipment and businesses (an average of around 170.000 euros per family), and in 2024 alone they paid over 14 million euros in various taxes.
More than half of those surveyed said that their children are already a generation that speaks Montenegrin and knows no other home.
"71 percent of them will have to leave Montenegro in the next year or two. This means at least 10-12 million euros less in the budget every year, as well as empty apartments in Budva, Kotor, Tivat, Herceg Novi and Bar, which will affect the decline in real estate prices by 10-15 percent. Thousands of small businesses (IT, cafes, services, crafts) will be closed because they cannot employ two workers or meet the threshold of 200.000 euros. The combination of the new law with restrictions on the use of real estate that is not legalized, leaves people without the ability to sell or rent out their homes, while at the same time taking away their residence permits," Ajković said.
The Foreign Investors Council states that they submitted their comments on the law during its public debate.
"The Legal Committee specifically pointed out the provision that limits the stay of foreigners in the position of executive director to three years. In practice, such a solution leads to an interruption of the continuity of legal residence and management of companies, because after the third year, a foreign executive director must terminate his employment, deregister from the Tax Administration, return the previous permit, leave the country, and only then re-apply for a new permit. During the period of waiting for a new permit, he cannot legally work or manage the company, which may result in misdemeanor liability, because the company will be without an employed executive director during that period," the organization stated.
They point out that only executive directors who simultaneously own at least 51% of the company's shares and who have at least three full-time employees, two of whom must be Montenegrin citizens, can have their licenses extended without such an interruption.
They believe that this solution is restrictive and that the possibility of extending residence should be extended to all executive directors, as well as that the provisions on proving tax obligations are not precise enough, that the law should be more flexible in areas where labor is particularly scarce, such as the IT industry, start-up community, healthcare staff, and that the entire procedure should be digitalized with high standards of personal data protection.
"We are convinced that improving this regulation will further strengthen Montenegro's position as a competitive investment destination that provides a stable and legally secure framework for credible investors and experts from abroad," the Council stated.
The German-Montenegrin Business Club (DMW) sent a letter to the Ministry of Interior stating that the amendments to the law are too rigid, inconsistent with European norms and harmful to the investment climate.
They stated that no EU member state prescribes a strict employee quota, that the restrictive norm is that a foreigner loses his permit if he leaves Montenegro for 30 days, while in Germany it is six months.
"At a time when Montenegro is striving for closer integration with the EU, these measures are going in the opposite direction, towards isolating the local market from foreigners, including EU citizens. The timing is particularly problematic, as foreign direct investment remains a pillar of the Montenegrin economy, accounting for around eight percent of GDP. Creating barriers for entrepreneurs and professionals who bring capital and expertise to the country undermines both the economic strategy and the credibility of accession," DMW said.
“It will be sad and painful to leave”
Some of the comments left by foreigners from Russia in the survey:
“Dear Montenegrins, you want so much to join the European Union, but your country will be treated there in the same way as you treat the foreigners living among you.”
"We want to develop our business, be useful and do everything we can to ensure the prosperity and well-being of our beloved Montenegro."
“The uncertainty and instability of the laws, as well as their retrospective application, undermine faith in the country and its prospects.”
"When our children heard that we might have to leave, you can't imagine how shocked they were, how many tears there were, how much confusion there was about why and for what."
"We don't have a 200.000 euro apartment, but we've been working for years, paying taxes, spending money every day in markets, cafes, and other shops, we're cultured, highly educated, we're not criminals. Yes, and now suddenly we're no good anymore. I'm very sad and scared about this situation."
"I have been living in Montenegro since 2011, I do not have the right to permanent residence, which is very sad, because I consider this country my own and I have no other home (I cannot and do not want to return to Russia for political reasons - I collaborated with people from the Russian opposition)."
"Now I have two bases for a residence permit (a company and a house), and after the law is adopted, I will have zero, even though I specifically did everything according to the law and tried to become as attached to the country as possible."
“We are a family with children who are fully integrated into the Montenegrin education system. The children speak the local language and have been going to school and kindergarten for three years. It will be sad and painful to leave, but the country is forcing us to do so.”
Bonus video:
