Proposed Law on Foreigners in Montenegro: What Property Buyers Need to Know – Montenegro’s government has recently presented a proposed Law on Foreigners that has raised many questions among international property buyers, investors, and real estate professionals. While the draft law is not yet in force, it has the potential to reshape certain aspects of property ownership for non-citizens—particularly in how property values are assessed and how residency rights may be linked to those values. The new proposed laws will not limit buyers on buying property of any value, but rather the value of the property qualifying the owner to apply for temporary residency.
As a real estate agency, our responsibility is not only to sell property but also to ensure that our clients make decisions based on clarity, transparency, and up-to-date information. Below is a clear breakdown of what is currently known, what remains uncertain, and how buyers should approach property purchases during this transition period.
So what does the new law propose?
The proposed law currently under review introduces a requirement that only properties purchased for €200,000 or morewill qualify their owners to apply for temporary residency in Montenegro. This threshold would also apply to renewals of temporary residency.
It is important to emphasize that this change does not restrict foreigners from buying property of any value. The limitation applies solely to those who wish to obtain or renew temporary residency based on property ownership.
For investors or buyers who do not plan to reside in Montenegro, there is no impact or cause for concern, as property ownership without residency will remain fully permitted.
The Proposed Law: What We Know So Far
The new draft law introduces several changes that may affect foreign nationals who own property or are considering purchasing in Montenegro.
Key points currently understood include:
1. The Law Is Not in Force Yet
This is the most important clarification.
- The new provisions have not been adopted.
- They have no legal effect at the moment.
- Procedures already started before the law comes into force will continue under the current, existing law.
Until the law is officially adopted, published, and its implementation date announced, all existing rules remain unchanged.
Property Value Reassessment: A Major Topic of Discussion
One of the most widely-discussed elements of the proposed law is the idea that a foreigner’s eligibility (such as for residency rights) might be linked to the officially registered value of their real estate.
However, several questions remain unanswered:
1. How Will Property Value Be Determined?
At this stage, no official methodology has been provided.
We do not yet know whether:
- market value will be used
- municipal “book value” will be used
- an appraisal system will be introduced
- only certain property types will qualify
All options remain speculative until the government releases further guidance.
2. Will All Properties Owned by an Individual Count?
It is currently unclear whether:
- the value of one property must meet the requirement, or
- the combined value of multiple properties will be considered
Again, we are waiting for official instructions or regulatory guidelines.
Revaluation Options: Increasing the Registered Value of Existing Properties
If revaluation becomes a requirement, many property owners will have potential options:
1. Revaluating Properties Already Purchased
Owners may be able to request a reassessment of their property’s official value through:
- the municipality’s cadastre office
- certified appraisers (if allowed by the future law)
- documented investment through renovations
This could help bring the recorded value closer to current market prices.
2. Renovations as a Basis for Higher Registered Value
If you have renovated or upgraded your home—new installations, expanded living space, structural improvements, etc.—these could potentially justify a higher valuation.
Owners should always keep:
- invoices
- architectural plans
- contractor confirmations
- photos documenting improvements
These documents may support a future revaluation request.
3. Higher Value May Mean Higher Property Tax
A very important point for owners to understand:
- Revaluation that increases property value
also increases annual property tax.
Municipal property tax is calculated based on registered value, so owners must be prepared for this side effect.
Advice for Buyers Currently in a Purchase Process
As much as we are a real estate agency—and of course we want to sell properties—the ethical approach is to protect our clients first.
At this moment:
If you are in the process of buying a property, we strongly recommend waiting for clarity.
Until the law is finalized:
- We cannot guarantee how property valuation rules will apply.
- We cannot say whether the property you are purchasing now will meet the criteria.
- We cannot responsibly advise a client to proceed without full information.
We value integrity over short-term sales.
Taking your money today without certainty about how the law may affect you tomorrow would simply be wrong.
Once the law is finalised, our team will immediately provide updated guidance and assistance in navigating any new requirements.
Montenegro remains a highly attractive destination for foreign buyers thanks to its lifestyle, natural beauty, and growing investment opportunities. The proposed Law on Foreigners aims to standardize and modernize certain processes, but many details are still under discussion.
Until official regulations are confirmed, the most responsible approach—especially for foreign buyers—is to:
- stay informed
- avoid rushing into purchases
- consult with professionals
- wait for full clarity
Our agency will continue to monitor developments closely and provide accurate updates as soon as new information becomes available.
Should you wish to view any of our properties, please contact us and we will be happy to assist in finding your new home in Montenegro.
Please note that all information given is based on our current understanding and information we have received at the time the article was written. It is still too early to give any concrete advise or information untill the government has finalised the proposed laws and they have been “Gazetted”.
