Montenegro Residency by Property 2025: New Rules and the €200,000 Threshold
In 2025, the program for obtaining a temporary residence permit (boravak) in Montenegro underwent its most radical changes in 10 years. On November 17, 2025, amendments to the "Law on Foreigners" entered into force. The main innovation is the introduction of a financial threshold. Now, to obtain status, the property value must be **at least €200,000**. Previously, the program was available upon purchasing any residential space, making Montenegro the most budget-friendly entry point into Europe. The new rules aim to harmonize with EU legislation and filter out fictitious transactions.
Attention current owners! If your residence permit was obtained based on a property worth less than €200,000, you are granted a one-year transition period. During this time, you must either change the basis of your residency (e.g., open a company or get employed) or purchase a property that meets the new threshold. Extending a "cheap" residence permit will be impossible after one year.
Property and Applicant Requirements
Not every object is suitable for legalization. With tighter controls, the Ministry of Interior (MUP) checks documents more rigorously.Property Criteria
- Type: Residential real estate only (apartments, houses).
- Value: Minimum €200,000 stated in the purchase contract. The real market price must match the declared value.
- Documents: Presence of a "List nepokretnosti" (Title Deed) indicating residential status.
- Exceptions: Commercial real estate, land plots, and properties under construction (without a usage permit) do not qualify for residency.
Life hack: Always check if the property has a specific address (street and number). If the documents say "bb" (bez broja — without number), you will face serious problems registering with the police and obtaining documents.
Document Package
- Valid passport (validity must exceed the requested residency period).
- Certificate of no criminal record from the country of origin (must be apostilled).
- Notarized purchase contract and a fresh Title Deed (List nepokretnosti).
- Medical insurance (local or international, valid for 30 days or more).
- Proof of funds: Bank statement showing at least €3,650 in the account (calculated as €10 per day for a year).
Process and Costs
The procedure for obtaining the plastic ID card takes about 2 months from the moment of purchase.Step-by-Step Instructions
1. Selection and Purchase. Choosing an object, checking document "cleanliness", signing the contract at a notary. 2. Tax Payment. Paying the real estate transfer tax (3–9% depending on value) if buying on the secondary market. 3. Submission to MUP. Personal submission of documents at the Ministry of Interior branch in your municipality. Biometrics collection (photo, fingerprints). 4. Waiting. Application processing time is up to 40 days. 5. Collection. Receiving the plastic ID card (boravak).
Expert Recommendation: To preserve investment liquidity, choose properties in Budva, Tivat, or Kotor. Real estate in these locations grows by 5–10% annually and has high rental potential year-round, unlike remote areas.
Estimated Costs
- Property Price: from €200,000.
- Notary Fees: €500–1000.
- Purchase Tax: 3–9% (progressive scale).
- State Fees: approx. €60.
- Residency Card Cost: €25.
- Insurance: €100–200 per year.
Life in Montenegro Analysis: 2025 Realities
Before investing €200,000, evaluate the objective pros and cons of moving.Pros
* Low Taxes: 9% on rental income. Residents do not pay property tax (in some cases). * Ease of Entry: Visa-run (leaving every 30 days) still works as a way to test the country. * Proximity to Europe: Cheap flights to EU countries, geographical center of the region. * Community: Developed infrastructure for expats (kindergartens, schools, services).Cons
* Banking Sector: Local banks often block transfers from foreign companies. PayPal works with restrictions, crypto operations are difficult. * Medicine: Low level of diagnostics. For serious treatment, it is better to go abroad. * Daily Life: Lack of central heating, high humidity, and mold in houses during winter. Frequent power outages. * Slow Pace: Bureaucracy and slowness ("polako") in all service sectors.Busting Popular Myths
Inaccurate information is often found on social networks and realtor brochures.- Myth: Residency can be obtained with any "ruin".
Reality: From 2025, the €200,000 threshold applies. Cheap objects often have document problems (no building permit), leading to rejections and even demolition. - Myth: Buying a home leads to citizenship.
Reality: Residency is a temporary status. Permanent residency (PR) is available only after 5 years of continuous living, and citizenship after 10 years, subject to a language exam and renouncing your native passport. - Myth: Old buildings are more reliable than new ones.
Reality: Old housing stock often suffers from severe dampness, requires expensive repairs, and does not appreciate in value. Modern complexes pay off faster through rent. - Myth: A building permit can be obtained "later".
Reality: Buying a property without a permit (upotrebna dozvola) risks huge fines and the inability to connect utilities.
Summary
The 2025 Property Residency Program is no longer a "budget ticket" to Europe. It is now a tool for wealthy individuals planning long-term residence. Montenegro remains attractive due to its climate and tax regime but requires sober calculation.
Do not make impulsive purchases. First, live in the country for 2-3 months in "visa-run" mode to see if the local climate and mentality suit you. Use only licensed lawyers for transactions.