States seek to reduce individual freedoms by inventing new taxes and regulations almost every day. Add to that the global recession that may come soon, and you’ll understand why having a second passport is practically a must for high-net-worth individuals.

Some CBIs are well-known, such as St. Kitts and Nevis, which was the first. However, some of the best citizenship by investment programs can be found in Europe. Malta and Cyprus, who are both EU members, have two of the most successful CBI and also the best residency by investment programs. 

And here comes Montenegro. This open-to-business, breathtaking Balkan country started a CBI program in 2018 for a period of three years, seeking to give the Montenegrin passport to 2000 high-net-worth individuals willing to develop the touristic sector of the country.

The government tried to begin two failed CBI in 2010 and 2014 that were criticized around the world, as the due diligence was insufficient, leading many alleged criminals and corrupt politicians to try to acquire the passport. However, in 2018, the government successfully launched the program with better background checks. The firsts to receive their passports under the Montenegro CBI were an Egyptian family in February 2020. Now Montenegro is one of the best countries for citizenship by investment in the world. 

Aside from that, what if we told you the Montenegrin program has the best tax optimization potential among the European CBIs and requires a way smaller investment among them?

You may say: well, but Montenegro isn’t an EU member. That’s true, but you’d only have to wait a few years (2025) for that to become a reality.

Now you understand why we say Montenegro is one of Europe’s best-kept secrets?

Let’s talk about the benefits you can obtain from your Montenegrin passport, especially if you’re a global investor seeking to protect your assets.

Post scriptum: The Montegero program is no longer available. Please contact us to find out about other options or visit our articles:

Citizenship in Saint Kitts and Nevis

Citizenship in Vanuatu

Citizenship in Grenada

Panama residency 

A robust passport with full EU access: 

Montenegro has the 42nd best passport by investment on the planet. It gives you visa-free access to more than 120 countries. The Montenegrin passport is better than the Russian, Chinese, and many Latin American passports. Furthermore, it allows visa-free travel across the Schengen Zone and, possibly, from 2025, will let you move and invest freely all over the European Union.

A gorgeous, socialism-free country: 

Montenegro is recognized for its natural attractiveness and its calm atmosphere, perfect for relaxing. It has a rising foreign community full of investors and high-net-worth individuals and natural and architectonical wonders akin to those of Greece. However, you have to subtract the statism, looming socialism, poverty, and the refugee crisis of their southern neighbors. Montenegro has some of the most magnificent sights in the Mediterranean, a mild climate, and a low cost of living.

A thriving economy: 

The country still has to take some steps to have an entirely free economy, but it has made some thoughtful reforms. The country is considered the 91st freest economy in the world, per the 2020 Index of Economic Freedom. That is a modest result but has improved noticeably in the last few years. Moreover, the country has a nonstop GDP growth, healthy trade, business, labor, and monetary freedom, and tax burden ratings in the index, and noteworthy advances in government integrity, property rights, and fiscal health.

Remarkable investment return potential:

Montenegro has seen a surge of FDI, which has been echoed in the real estate market. That means the property you invest in has a return potential of around 4 and 8 %, one of the uppermost around Europe. Even better: Real estate capital gains are taxed at a meager 9 %, which is way lower than most European countries.

The Montenegrin CBI is one of the few that lets you earn profits from your investment almost instantly. The acquired real estate can be rented out to tourists. Thus, you'll get passive income and reduce the net cost of your application in the five years during which you must keep the property.

Compare that to, for example, the Cypriot CBI*, where you must invest in a €500k residential property of a total €2m investment that you’re forced to keep forever, and you'll see the difference. The best passport by investment is the one that offers us citizenship, the possibility of merging into a new culture and that has flexible requirements regarding the investment terms. 

*The Cyprus CBI has been discontinued. 

The best citizenship by investment programs have few requirements, rapid process, and include the family. In Montenegro, both the spouse and financially dependent children can acquire the passport with the main applicant. Similarly, the program has only a handful of requirements: you don't have to live in Montenegro before or after the process, and most of it can be done without you being physically present. You only must go to Montenegro for a biometric scan and get your passport. That means there are no language tests, and you don't need to quit your primary citizenship.

Lastly, the process is quick. It can be conducted thoroughly in as little as three months.

Malta's cost with Cyprus' taxes: 

The leading advantage of Malta's citizenship by investment is its cost. It's way less than the €2m of the Cyprus program. The main benefits of the Cyprus program are tax optimization and investment possibilities. 

Montenegro has both. 

It costs around €250k and €450k depending on the investment you choose with robust investment return and many other investment chances in tourism and infrastructure.

There are many different paths towards the Montenegrin residency, and the citizenship by investment program has gained plenty of attention from investors around the globe. Let’s discuss both possibilities but starting from the residency permit.

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Residency in Montenegro

If you want to know the best residency by investment programs available out there, you have come to the right place. At Mundo, we have experts in practically all the existing programs and Montenegro is not the exception. There are many ways to get a residency permit in Montenegro. One of the most used ways is registering a company. Under the Montenegrin law, the authorized capital may be a mere €1. We’ll discuss how to open a business in Montenegro further in the report.

You and your family can get a residence permit if you register a company in Montenegro which will allow you to live and work in the country all year and offers a path towards permanent residence and citizenship. Likewise, if you obtain a residence permit and spend 183 days in a calendar year in Montenegro, you’ll qualify as a tax resident and will benefit from the incredible tax rates Montenegro offers.

The other path towards obtaining a residence permit in Montenegro is buying real estate. Foreigners don’t have any limitations regarding this path. You can extend the permit annually and can get it if you buy houses, apartments, companies, hotels, restaurants, and seasonal homes, no matter their value. However, this path won’t lead to permanent residence.

These are the documents to apply for residence in both cases:

That means the only difference lies in what you should prove: real estate ownership or company ownership. Now, if you follow the company ownership path, it will offer you a way towards permanent residence. That status gives you all the rights of a Montenegrin citizen, except for voting. To obtain it, you must live in the country as a temporary resident for five years and have never been outside the country for six consecutive months during this period. Afterward, you can apply for citizenship, having lived in Montenegro as a permanent resident for five years.

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Citizenship by investment

Now, we can talk about what may interest you the most: the CBI program. The two best-known CBI programs are Cyprus and Malta. But what if we told you the Montenegrin program has better tax optimization benefits than Cyprus and entails a smaller investment than both Cyprus and Malta? As Montenegro will likely join the EU in 2025, the passport will also have the benefit of allowing you to invest, live, and work across the EU with total freedom. Due to the unique combination of cost-effectiveness and benefits, Mundo recommends Montenegro as one of the best countries for citizenship by investment. 

Now, we can discuss the requirements. You must consider the following:

• The applicant cannot be subject to sanctions and/or banned for entry to the EU, UK, USA, or Canada
• You must have a clean criminal record
• You must prove the funds you use for the application and investment are legitimate 
• You must be in good health 

Let’s talk about the nature of the program. You must make economic contributions to Montenegro in two ways. First, an investment in a real estate project, and second, a donation to fund the development and infrastructure of undeveloped areas of the country.

The real estate projects must be five-star mixed or hotel complexes in the Coastal region or the capital, or four-star mixed or hotel complexes in the North. The investment must come from the list of government-approved development, as the government seeks to ensure the projects are rentable and feasible.

There are two investment possibilities:

You can rent out your property. Thus, you can obtain passive income from it. That means that the total net worth of your investment is even lower. Likewise, as you can sell the property after five years, and the real estate market is growing, you’ll get an incredible investment return.

As of today, there are four government-approved projects where applicants can invest. Our partners at Discus Holdings are working with one of them, which has an unparalleled investment return potential. 

We're speaking about The Westin, a ski resort situated in Kolašin, which is the best winter tourism destination in Montenegro, and one of the most underrated in the Balkans.

Kolašin is fenced by the imponent hills of the Bjelasica mountain, the Biogradska Gora national park, of which the river Tara runs close that give you magnificent, once-in-a-lifetime sights. Kolašin is a location of nearly virgin nature with 17 km of ski tracks and 18 km being built. Even better: it’s known for being the place with the most per-capita number of Kafanas, among ex-Yugoslavia states. Kafanas are bistros that serve food coffee and alcohol and add a bohemian ambiance to Kolašin’s beauty. It has everything to become a top winter tourism destination.

A highway is almost complete. It’ll give access to Kolašin from Podgorica in only half an hour. The hotel has a privileged location, only a walk away from the best ski hills in the Balkans.

The plan has 93 bedrooms, of which 52 are suites. It includes parking, three (buffet, outdoors, national food) restaurants, a ski-view bar, a beauty salon, a conference room, a ski rental, and more.

Actually, The Westin is about the first part of a larger development that consists of 2,000 beds divided between five hotels, eight flat buildings, and 45 private chalets. It's projected to hold 30,000 skiers.

As it's located in the north region of Montenegro, the minimum investment is €250k. The country is seeking to sell itself as a top touristic destination, and it has everything to do it. With the predictable triumph of its CBI program, tourism FDI will get a boom. You can’t lose this opportunity.

If you wish to apply for the CBI program, our experts at Discus Holdings will explain to you the details of the project, its financial features, and the projected investment returns (hint: they are amazing).

Now, it’s vital to note that the beneficiaries of the program can be 1) the main applicant, 2) his spouse, 3) financially depending children without age restrictions.

Furthermore, the program has some processing fees to consider. They are the same for both investment paths:

If the investor applies alone: €15k

If the investor applies with his spouse: €25k: €15k the main applicant + €10k the spouse

If the investor applies with his spouse, and up to three dependents: €55k (with three dependents): €15k the main applicant + €10k the spouse, and €10k per dependent

If the investor applies with his spouse, and more than three dependents: €105k (with four dependents): €15k the main applicant + €10k the spouse + €10k the first three dependents + €50k per additional dependent.

Now, let’s walk you through the application process.

Consultation and background check with our experts: Our experts will check if you are eligible for the CBI and if you have all the documentation in hand. The primary documents are:

1. Check and pick a real estate project: Our experts will provide you with a portfolio of projects, so you select the best for you and sign the investment documents.
2. Payment of the investment and government contribution: You’ll pay the government donation (€100k) and real estate investment (€250k or €450k, depending on the selected investment) 
3. Payment of fees: After the background check is done, you can pay the government fees mentioned above and the professional fees of our experts 
4. Submitting the documents: Our experts will provide all documents, including the proof of payment of the contributions and the investment.
5. Getting a favorable decision: This is the longest step. Authorities take somewhere between three to six months to review your application.
6. Taking biometric data and receiving your passport: This is the only moment that requires your physical presence in Montenegro. You must provide your biometric data and obtain your passport.

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Who we are

Since 1994, we’ve helped high net worth individuals protect their legacy, investments, and family by obtaining second passports to help them do business freely.

In these 25 years, we've assembled a matchless network of experts to give first-level services with an unrivaled level of expertise for our customers. That's why we work with Discus Holdings, which is one of the only three government-approved CBI service providers in the country and is present in dozens of countries.

Our partners have more than 20 years of experience in the market. They offer full transparency, which means you won't have issues with small-letter conditions and hidden fees. For us and all of our experts, trust is our core value and the base of all our relations. 

Discus Holdings will also support you during the entire process and after the citizenship has been accepted. Mundo and Discus Holdings can also give you valuable tax and financial assistance, so you can take care of your business, and while you acquire citizenship. 

Want to know more? Check our front-page article and contact us now!

The Montenegro CBI program is the latest one to join the group. Will it be successful?

What advantages can the program offer for investors, especially Latin American investors?

Montenegro is joining the European Union soon. Still, the cost to obtain citizenship is more affordable compared to the EU passport schemes. Also, Montenegro is one of the best locations for investment in Europe. 

According to the Montenegrin Investment Promotion Agency, the essential drives to start business activities in Montenegro are the followings:

Why choose Montenegro and not Malta or Cyprus, who are already EU members, or one of the Caribbean and Pacific Islands that offer a CBI program?

Does the program have a set number of passports it will provide and a time limit?

Does the CBI program offer any particular tax advantages for those who get a positive response?

What other investment opportunities does the country have? What would you say to convince someone to invest in Montenegro?

Montenegro is the last European El Dorado for tourism investment. 

Does the source of wealth need to be disclosed? What other requirements must be considered?

What are the investment possibilities to apply to the program? Are there any additional contributions?

The Montenegro Citizenship by Investment Program allows the applicants to invest in real estate. There are two options:

• Purchase real estate in the northern part of the country for €250,000

• Purchase real estate in the southern part of Montenegro or the capital city of Podgorica for 450,000 EUR

Under both options, the investor must also contribute to the state 100,000 EUR.

Can I invest in any project I like or only in government-approved projects?

The program includes only real estate investments qualified and approved by the government.

How many projects have the Montenegrin government approved so far? Do you provide guidance on this part of the process? Do you have direct access to any of them?

We are among the only three official agents of the Montenegro Citizenship by Investment Program. Naturally, it means that we can offer the lowest price, the best and fastest information, and we can guide our client to visit all investment projects to be able to make the right decision. You don't have to cut through a long chain of agents to arrive at the source. 

Now, the following real estate projects are approved by the government, but more and more projects are qualifying for the strict guidelines of the regulations. 

• Condo Hotel," Kolasin Resort & Spa", Kolasin
• Condo Hotel," Breza", Kolasin
• Hotel," Kraljicina plaza", Milocer – Budva
• Hotel," Durmitor Hotel & Villas", Zabljak

What is the mandatory investment term? Can the real estate be rented out during that term or only after it?

Each development is different, so you should ask for the detailed information about every case. Legally the purchased property can be rented out.

What are the main fees that must be paid to apply and to get the passport?

Government Due diligence fees:

• Primary applicant: €7,000
• Dependent (up to 4): €10,000
• Dependent (after the 4.): €1,500

There is also a €15,000 government application fee for the primary applicant plus €10,000 for each family member plus €50,000 after the fourth family member.

Which dependents can be included in the application? 

Answer: 

• Primary investor
• His or her spouse
• Dependent children without age restriction
• Citizenship is also guaranteed for the next generations.

Could you walk us through the process? Does the applicant need to live in Montenegro during the process? When does he have to be physically present?

The applicants do not have to live in Montenegro, but they must be personally present during the process to take their biometric data – but it is only at the end of the whole procedure.

The process is straightforward:

• Signing the agreement and making a preliminary due diligence check
• Payment of professional and legal fees
• Document collection
• Payment of government fees
• Investment project selection and signing the investment documentation
• Payment of investment and contribution into an escrow account
• Submission of the necessary documents and application for citizenship 
• Getting the affirmative decision and the certificate of naturalization
• Taking of biometric data in Montenegro
• Receiving the passport

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How much time does the process take?

Answer: Montenegro offers the fastest European passport through an investment scheme; the process takes approximately three months only. 

Is Discus Holdings a government-licensed service provider in Montenegro?

Naturally, Discus Holdings was among the first immigration and investment consultancies to obtain a license from the government. 

What do you offer over other providers in Montenegro? Why should a client pick Discus Holdings?

Most of our competitors entered the citizenship and residency by investment sector only a couple of years ago. Meanwhile, our colleagues have more than 25 years of experience. Even before the trend of obtaining second citizenship started, we have already been one of the leading European company forming and tax planning service providers in Central Europe. We have the contacts, and we are official agents of the programs. We take the success of your application personally. Ask for a free consultation to check the quality of our service.

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