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A residence permit in Montenegro (borawak) is a document that allows its holder to stay in the state for 1 year and has an easy renewal procedure. The government of the country provides foreign citizens with the opportunity to obtain a residence permit on the basis of doing business and employment in their own enterprise. The immigrant must officially manage the company and own more than 51% of its capital. Resident status allows an entrepreneur to live and work in Montenegro, as well as receive medical and educational services for free.
Advantages of Montenegro residence permit for CIS citizens
In 2023, Montenegro may join the EU, according to the confirmed strategy of the European Council
Applicants have the opportunity to immigrate to Montenegro with their family
Low cost of maintaining residence permit status and company maintenance, and the newly created company may not be actively involved
Favorable taxation: income tax is only 9%
Access to Bologna education with an internationally accredited diploma
Free healthcare in Montenegro at all levels of medical care (for non-residents, treatment in the country is expensive)
Who can apply for a residence permit in Montenegro
An applicant for residency can register a new company in Montenegro and work for it as a director. There are no requirements for the company’s activities, such as job creation or a positive impact on the country’s economy, and the authorized capital can be 300 EUR.
Mandatory conditions are the payment of taxes in the amount of 9% of profits and the submission of annual financial statements. Thus, for the operation of a business that will provide legal grounds for granting a residence permit to a foreign applicant, only a director is needed on staff. The residence permit is valid for 1 year, after which the resident has the right to extend the status.
Residence permit in Montenegro for real estate and Spanish experience
Spain generously distributed residence permits when purchasing real estate
Spain is still teetering on the brink of bankruptcy. However, what is bad for public finances is good for foreigners who can afford to buy real estate in a given European country. Moreover, prices for houses and apartments have dropped significantly compared to the pre-crisis period.
Official Madrid - the example from which Montenegro is now taking - also did not remain aloof from the trend and decided to encourage foreign cash injections into the economy by offering foreign citizens who purchase real estate in Spain worth more than 500,000 euros to automatically obtain a residence permit (let me remind you that Podgorica decided to issue a residence permit in Montenegro for any real estate).
This option was extremely tempting, since the happy new owners of luxury housing could travel almost throughout Europe without the need to obtain a Schengen visa each time.
Happy homeowners asked to pay extra on taxes
The Spanish sea and sun became less attractive to CIS citizens after Madrid decided to impose an additional tax on them. Graphics: Tomas Fano
In 2014, from being a liberator from visa formalities, a residence permit in Spain turned into a curse. In accordance with Law No. 7/2012, which came into force in Spain in 2014, all holders of a residence permit are required to submit an annual declaration to the Spanish tax authorities.
The main unpleasant surprise was that if a foreign citizen pays taxes on his business in his home country (i.e. outside Spain), he is obliged not only to report this fact in the declaration, but also to pay the difference to the Spanish budget. what he has already paid in the country where the business is located, and what he would have to pay if his business was located in Spain.
All income is subject to declaration - both received from labor or business activities in Spain and abroad. Income from employment, business, shares of any companies, bank deposits and rented real estate are included. A foreigner must even report inheritance received outside Spain.
Businessmen from Russia suffered especially from the “Spanish trap”. The fact is that Russian entrepreneurs who have a residence permit in Spain live (or lived - many left Spain after the Law came into force), as a rule, at the expense of their business in Russia, where they pay taxes. However, taxes in Spain are higher than in Russia.
If the corporate income tax in Russia is 20%, then in Spain it is 25% (up to 250 employees) and 30% for larger ones. The tax on individuals in Russia is 13%, while in Spain it is progressive - from 25 to 52 percent. Accordingly, foreigners will have to compensate the Spanish treasury for the difference between tax rates in the 2 countries.
Requirements for the applicant
Age threshold: 18 years
Ownership of a company registered in Montenegro
Employment in the above company as a director
Availability of 3650 EUR in an account in a Montenegrin bank
No criminal record in the country of permanent residence
Availability of own or rented housing in Montenegro
Completed secondary, vocational or higher education
No ban on entry into Montenegro
Steps to obtain Montenegrin citizenship
The first step is to ensure that the applicant meets the following requirements:
- Citizen of a non-EU country.
- Have a valid passport.
- There are no sanctions, restrictions or bans on entry into the European Union, USA, UK and Canada.
- There are no criminal records and no serious crime investigations are currently underway.
- Confirmation of legality of income.
- The source of the money used to pay for the investment is legal.
- An impeccable reputation both personally and in business.
- Good credit history.
- Good health.
The steps in the procedure for obtaining Montenegrin citizenship are as follows:
- Consultation with experts from the International Wealth portal and our partners (licensed immigration agent).
- Signing an agreement for the provision of services and making a down payment.
- Making investments in a real estate project and donating to the National Economic Fund.
- Preparation of necessary documents by the investor with the help of our experts, translation and verification.
- Sending documents to a lawyer who will review and verify the entire file before filing an application.
- Applying for citizenship.
- Due Diligence and Government Approval.
- Issuance of naturalization document and passport.
It will take 3-6 months for your application to be approved.
All dependents are eligible to apply, including spouse, children under 26 years of age, parents if 65 years of age or older.
We invite you to familiarize yourself with the details of the application for Montenegrin citizenship by following the link.
During the process, you will need a foreign bank account. Take advantage of a free consultation on choosing a foreign bank account from our experts.
Get advice on obtaining Montenegrin citizenship in 2021 by writing an email
How much time and money does it take to obtain Montenegrin citizenship?
Obtaining a Montenegro passport can take from 3 to 6 months. This is how long it takes to complete a comprehensive review and process an application. The absolute minimum that must be invested is 350,000 euros. This is a donation of 100,000 euros to a state fund and an investment in real estate in the northern regions of the country in the amount of 250,000 euros. The fee for filing an application (from 15,000) and comprehensive verification (from 7,000) are paid separately. Applicants for Montenegrin citizenship are also charged costs associated with visa application, issuance, translation and authentication of documents, and travel expenses.
Is permanent residence required after obtaining Montenegrin citizenship?
No. You are not required to visit Montenegro or live on its territory in order to obtain citizenship and not lose it. But once you apply for a second passport, you will need to spend 5 days in Montenegro within 5 years to retain your citizenship and renew your passport.
Extension of residence permit, obtaining permanent residence and citizenship of Montenegro
Residence permit in Montenegro Issued for a period of 1 year with the possibility of multiple extensions for 1 year. To extend temporary residence status, it is also necessary to maintain the activity of the company by paying wages to at least one employee (director), maintaining a legal address and tax deductions.
Permanent residence in Montenegro Can be granted to residents who have been living in the country for 5 years, and the period of stay outside the state does not exceed 10 months for the entire period. During the year, you are allowed to leave the country for a total of up to 6 months.
Citizenship of Montenegro through naturalization According to Article 8 of the Law “On Citizenship”, it is available to persons who have permanently resided in the territory of the state for the last 10 years. A prerequisite for issuing a Montenegrin passport is the renunciation of previous citizenship.
Ways to acquire citizenship
- By birth.
- By nationality.
- Upon acceptance of Montenegrin citizenship.
- For other reasons dictated by international treaties.
Obtaining citizenship by belonging to a nation
For this reason, the status of citizen of Montenegro is obtained by:
- Children, if their father and mother are citizens of Montenegro;
- Guys, if one of the parents at the time of the birth of the baby in this Balkan power was its subject;
- Children born on the territory of another power, but one of whose parents is considered an indigenous person of Montenegro, provided that the second parent agrees that the child will become a citizen of Montenegro;
- Children, one of whose parents has citizenship of this Balkan power, and the second parent is unknown or considered stateless. At the same time, babies can be born both on the lands of Montenegro and abroad (in another country), however, during this time they did not acquire the citizenship of that power.
Acquiring citizenship by birth
A child who was born or was found on its lands applies for citizenship of Montenegro if his father and mother are unknown or they are considered stateless persons.
Obtaining citizenship by acceptance
- Citizenship of Montenegro can be obtained by a national of another power who is already 18 years old. In this case, a person must reside in this country for at least 10 years before applying for citizenship.
- A person married to a citizen of Montenegro can become an indigenous person of this country at his own discretion, provided he has lived in it for at least 5 years before submitting the application.
- If a father and mother have acquired citizenship of this republic, then their child, who is not yet 18 years old, also receives it.
- If one of the parents has acquired citizenship and the other has not, then the child can acquire the status of an indigenous person only if the parent who is a citizen of Montenegro submits a petition and the other agrees with this.
Obtaining citizenship in accordance with international treaties
Under this clause, a person who at one time acquired citizenship of Yugoslavia can become a citizen of Montenegro (after all, Montenegro was previously part of this state, which then broke up into separate powers).
Citizenship through the purchase of real estate
There is no law in Montenegro according to which, when purchasing real estate, a foreigner can obtain citizenship in 2021.
Unlike countries such as Spain, Portugal, Latvia, where the purchase of a house or apartment is a fundamental fact for obtaining citizenship, in Montenegro this rule applies for a purchase amount starting from 250,000 euros.
When purchasing ordinary real estate, a person can obtain a residence permit; this rule has been in effect since April 2015. However, there are some nuances: for example, you can get a residence permit for a period of 1 year if you purchase a property worth more than 40 thousand dollars.
When obtaining a residence permit by purchasing a house or apartment, a person will no longer be able to obtain permanent residence on this basis.
If a person buys real estate from 250,000 euros, he can automatically receive a Montenegrin passport. His spouse and children also have the right to obtain citizenship.
Economic Citizenship Program
Despite the fact that dual citizenship is prohibited in Montenegro, the authorities of this country made the following decision in 2010: foreign businessmen who have contributed at least 500 thousand euros to the country’s economy have the right to acquire citizenship of the republic in a special manner, as well as receive a Montenegrin passport.
This means that the investor is not required to have knowledge of the language or several years of residence in the country. It is enough just to sponsor this power with money.
Investments should be made in a business, and not in a property for individual use.
This program was developed by the authorities in order to attract foreign businessmen to their country.
Permission stamp for long-term stay in Montenegro
Money makes everything possible, including Montenegrin citizenship. The country's authorities will accept documents from businessmen wishing to participate in the economic citizenship program if the entrepreneurs have an open and clean biography, as well as financial stability. And the capital received from such a program will go to the development of tourism in Montenegro.
What does a Montenegro passport give to its owner?
Montenegro has not yet joined the European Union, but this could happen as early as next year. If the state is included in the list of EU members, Montenegrin citizens will be able to live and work in any country of the association. Already, a Montenegro passport gives its owner the opportunity to visit many countries of the world, including the Schengen area, Israel, Turkey, and the UAE, visa-free.
The text was moderated by
Alexander Samoilov Leading migration specialist in the direction of “Immigration to the EU”
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