On the eve of the lapse of the legislation on Thursday (30th December) the Montenegrin government made a last-minute ruling that it would extend its economic citizenship programme by one year, until December 2022.
This was despite pushback from the European Commission who argued that it could harm the country’s progress towards EU membership. The government sought to assuage concerns by introducing stricter conditions for gaining economic citizenship through the programme.
“In the next month, all investors that already requested citizenship must submit to the Government a bank guarantee – in the amount of 50% of the investments prescribed by the programme. All new applicants must pay €100,000 to the state and another €100,000 for regional development,” the government announced, doubling the previous requirement.
In 2010, the former government started three “economic citizenship” schemes for “renowned businessmen of credible reputation” if they invested at least €500,000.
The most recent incarnation of the programme was launched in January 2019, when the government offered passports to investors investing at least €250,000 in underdeveloped regions in the north or €450,000 in more developed regions of the centre and south of the country.
According to official figures,108 foreign citizens, mostly Russian and Chinese nationals, have so far obtained Montenegrin passports by buying property or by donating money to underdeveloped areas.
In March 2021, the new government announced that the scheme was to terminate at the end of the year, mainly to smooth Montenegro’s accession into the EU, but they had second thoughts. The Minister of Economic Development Jako Milatovic said the programme “Will make Montenegro a regional leader in allocating money for innovation. By developing tourism, we strongly support the development of innovation – as the foundation of accelerated economic development”.
Industry experts expect the price rise to have only a minor impact, as there has been a spike in interest and applications over the last year.
