I had been watching some videos about Montenegro and that you can get residency by buying property or even cheaper by creating a company there. Is really that easy and simple? Seems like a nice country with low taxes for Europe. I wonder what are the downsides to this and if the banking is decent there... Did anyone got residency or have any experience with this?
Residency in Montenegro
- Thread starter Mssquirrel
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As long as you have a good lawyer helping you out, setting up a company and getting residence that way in Montenegro is easy and quite cheap. Realistically, the whole process takes one to two months. IIRC, you are expected to sign a one-year lease to get your temporary residence valid for one year. You have to renew this four times. After five years, you can get permanent residence.
Banking is OK. Despite using EUR, Montenegro is not a SEPA member so you're relying on SWIFT wires for moving money in and out. Slower and more expensive. There is a decent range and selection of banks, including Erste and OTP (CKB) if you want banks of EU origin.
Taxes are low. You can get lower taxes elsewhere but if you factor in costs of living, Montenegro might still be the better deal.
Montenegro has been working towards EU membership but estimates of completion vary from three to five years, to practically never.
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This is the probably the answer to your question.
Banking is OK. Despite using EUR, Montenegro is not a SEPA member so you're relying on SWIFT wires for moving money in and out. Slower and more expensive. There is a decent range and selection of banks, including Erste and OTP (CKB) if you want banks of EU origin.
Taxes are low. You can get lower taxes elsewhere but if you factor in costs of living, Montenegro might still be the better deal.
Montenegro has been working towards EU membership but estimates of completion vary from three to five years, to practically never.
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This is the probably the answer to your question.
Thanks I might travel there this summer and see how is there I am curious about this and other Eastern European countries. Is necessary to live there for X months a year to keep residency? Tbh that it's not part of the EU is a plus for me, except for the not SEPA transfers but you can't have it all.
If you get residence permit through acquiring property, there is an expectation that you spend the majority of your time in Montenegro. IIRC, you're not even supposed to leave for more than a month in the first year. Eleven months of the first year in Montenegro. If you don't do that, they might make you start over instead of renewing.
But if you form a company instead, you aren't required to stay in the country for a specific period of time. You need to maintain a residence in Montenegro, but you're free to come and go as you please without risking your residence permit. They unofficially expect you to spend enough time to Montenegro to maintain meaningful ties and they like it if you hire a couple of locals for your company.
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First time I here the mandatory stay is not aplicable for residence based on company registration, and I'm a native speaker. Can you give any source on this?
Source is discussions with immigration lawyers in Montenegro. Based on that, there is no minimum stay requirement to maintain residence permit obtained through company formation, as long as you keep paying yourself a salary and all payroll taxes. Of course, if you want tax residence, it's a different story.
Since you speak the language, what does the law say?
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How does Montenegro compare to Cyprus? Montenegro seems like a good deal, why are more people not choosing it?
Higher tax, but even less control. IIRC, 15% income tax and then 13”“15% local (municipal) surtax.
Little to no effort spent figuring out the tax status of the origin of funds, similar to Cyprus. You can quite comfortably live in Montenegro, pay dividends from offshore, and not get questions about where the money comes from. Just pay tax on what you receive/declare in Montenegro.
It's very popular with Russians and other CIS nationalities, and a growing Chinese community. It was especially popular when they were selling passports, too.
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The residency process is same for property ownership or company ownership...The police will come knock on your door, if you are not at the address, they will cancel residency permit...They monitor this very closely. It is very strict unfortunately...I even own property there, can get a residency permit, but would fail the first police check (you can only leave for 30/365 days in a year), so I don't bother to apply for it...
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