Amendments to the foreigners act in Montenegro: Key changes

What has truly changed and what foreign nationals should pay attention to

The amendments to the Foreigners Act in Montenegro entered into force in January 2026 (Official Gazette of Montenegro No. 003/2026). Although these amendments have attracted significant public attention, practice already indicates that certain provisions are frequently interpreted imprecisely or incorrectly.
Through these amendments, the legislator has shifted the focus from the mere formal fulfilment of requirements to the substantive aspects of foreign nationals’ residence and work, with a clearer linkage between the right of residence and actual employment, tax obligations, and compliance with statutory deadlines. This approach is of particular relevance for foreign company owners, executive directors and investors, as well as for employers engaging foreign nationals.

Temporary Residence and Work – Duration and Extension of the Permit

A temporary residence and work permit issued on the basis of employment is granted for a period of up to one year. The amendments to the Act further specify the conditions under which the validity of such permit may be extended.

The extension of the permit for up to two years is no longer the rule. As a general condition for extension, the foreign national must have an employment contract concluded on a full-time basis, thereby clearly emphasizing that the right of residence must be linked to an actual and continuous employment relationship, rather than to the mere formal existence of an employment arrangement.

An exception to this rule exists, but it is narrowly defined.

The permit may also be extended in cases of part-time employment, exclusively for executive directors who have employment contracts with multiple employers, and only provided that all statutory requirements are met. Such regulation significantly narrows the scope for abuses that previously existed in practice.

Company Owners and Executive Directors – A New Fiscal Requirement

One of the more significant novelties concerns foreign nationals who are owners or majority owners (holding more than 51%) of companies in Montenegro, as well as executive directors.

As a condition for the extension of a temporary residence and work permit, applicants are now required to provide evidence that taxes and social security contributions have been duly paid in the preceding period in a minimum annual amount of EUR 5,000. This amount does not constitute a fee or an administrative charge for residence, but rather serves as an indicator of genuine business activity and fiscal compliance.

In this manner, the legislator has, for the first time, directly linked the right of residence to a real economic contribution in Montenegro, with the aim of preventing the practice of establishing companies that exist solely as a formal basis for residence.

It is important to note that this obligation does not apply to nationals of European Union Member States, nor to nationals of Iceland, Liechtenstein, Norway and Switzerland, nor to members of their families, regardless of their nationality.

Employer Obligations and Strict Deadlines

The amendments to the Act significantly tighten the responsibilities of employers.

An employer is required to conclude an employment contract with the foreign national and to register the foreign national for mandatory social security within 24 hours from the date of issuance of the temporary residence and work permit. If the foreign national does not commence employment, the employer must notify the competent ministry no later than three days thereafter, for the purpose of revoking the permit.

Through these provisions, the legislator clearly emphasizes that a residence and work permit cannot exist without actual employment.

Residence on the Basis of Real Estate Ownership

In practice, the conditions for obtaining residence on the basis of real estate ownership are still frequently misinterpreted.

The Act now clearly stipulates that the tax base of the real estate, as determined by the decision on real estate transfer tax, must not be lower than EUR 150,000. The decisive evidence is exclusively the final tax decision issued by the competent local authority, rather than the purchase price stated in the sale and purchase agreement.

As in the case of the fiscal requirement of EUR 5,000, this obligation does not apply to nationals of the European Union, Iceland, Liechtenstein, Norway and Switzerland.

Temporary residence permits issued prior to 17 January 2026 on the basis of real estate ownership may be extended without the obligation to demonstrate the value of the real estate.

Electronic Submission of Applications

One of the significant practical novelties introduced by the Act is the possibility to submit applications for temporary residence and for temporary residence and work electronically. The documentation is submitted in scanned form, and administrative fees are paid electronically.

However, the Act retains the obligation for the foreign national to personally appear before the competent authority within 10 days of entering Montenegro for the purpose of taking a photograph, fingerprints and a digitized signature.

IT Sector and Shortage Occupations – Extended Duration of Permits

The amendments to the Act provide for a specific benefit for foreign nationals employed in the IT sector and certain shortage occupations, including the healthcare sector.

For these categories of foreign nationals, a temporary residence and work permit may be issued for a period of up to three years, with the possibility of extension for an additional three years, provided that the employment engagement is concluded for a period of at least 12 months. This provision aims to attract highly qualified professionals and to ensure greater long-term stability of employment in sectors of particular importance.

Employment through Temporary Employment Agencies (Leasing of Employees)

The Act further regulates the employment of foreign nationals through temporary employment agencies. In such cases, a residence and work permit may be issued for a period of up to one year, with the possibility of extension, in accordance with the general conditions prescribed by the Act.

Deadlines for Extensions – A Preventive Approach

A particularly important amendment concerns statutory deadlines. Applications for the extension of temporary residence and temporary residence and work must be submitted no earlier than 60 days and no later than 30 days prior to the expiry of the permit. This change abolishes the previous practice of extending permits after their expiry and introduces a preventive system requiring timely planning.

Conclusion

The amendments to the Foreigners Act introduce a clearer, yet significantly stricter regulatory framework. The right of foreign nationals to reside and work in Montenegro is now directly linked to actual employment, proper fulfilment of tax obligations and consistent compliance with statutory deadlines. These changes are particularly relevant for foreign company owners and executive directors, for whom formal arrangements no longer constitute a sufficient basis for exercising residence rights.

In light of the numerous exemptions and the specific circumstances of individual cases, an individual legal assessment is necessary in practice in order to identify potential risks in a timely manner and to avoid the consequences of permit refusal or revocation.