For several years now, Montenegro has been among the top three in terms of the number of requests from buyers of apartments and villas on the HomesOverseas.ru portal.Many Russians and Ukrainians have moved to their favorite resorts on the Adriatic coast of this country and settled there. The market was booming: the sale, rental of housing - everything was in demand. However, the year 2025 brought surprises from the authorities: the new law, still under consideration, caused intense discontent among immigrants. The final version, adopted at the very end of December, turned out to be milder than the one discussed, but this does not change the essence: it has become more difficult to obtain and especially extend a residence permit for many reasons, as well as to run a small business. It's still easier than in many other jurisdictions, but it's definitely harder than it was before.
"The key change is the transition from a formal approach to an economically sound one," explains Svetlana Zamotina, Director of the agency Tradegoria. "If earlier it was possible to obtain a residence permit through inexpensive real estate or a sleeping company, now the state has explicitly designated a priority.": The country needs financially well-off and economically active residents."
The law came into force at the beginning of the year. The chat rooms of the Russian-speaking community were in full swing, as many private details, as usual, turned out to be beyond the general formulations, and people did not understand what to expect and how to act in their specific cases. Now the practice of applying the new law is already clear to a certain extent. Let's discuss what is happening in the immigrant environment in general and with the real estate market in particular.
What has changed?
1. Residence permit for real estate.The most notable thing for the housing market is the introduction of a minimum threshold for the cost of an object for obtaining a residence permit. Previously, it was possible, owning at least half of the property of any value, to obtain a residence permit in Borawak. Now you need the property to be worth at least 150,000 euros, then you can apply for a residence permit. As before, it is allowed to own half of the object or several objects, the total cost of which reaches a certain threshold.
Note that this is twice as low as in Bulgaria (300,000 euros) and less than in Turkey, where 200,000 dollars are required.
Experts note an important nuance that many miss. It is necessary to focus not on the market, but on the cadastral value, which is much lower in Montenegro. As a result, a gap is forming: an object can be sold for 150,000-170,000 euros, but according to the cadastre it cannot reach the threshold.
"The price creates a false feeling among buyers that it meets the requirements, although formally it may not be so," explains Svetlana Zamotina.
In such a situation, the issue of cost confirmation is important.
"It is still difficult to get information from the employees of the Municipal Unitary Enterprise (Ministry of Internal Affairs) which document proving the value of the property needs to be provided: a purchase agreement, a tax decision or something else," comments Ekaterina Zubrilina, expert of the Cherry Estate agency..
"The practice has not yet been fully established, but there is a solution: you can hire a licensed appraiser and get an official report. Such a document is a legitimate basis for confirming the value of real estate and should be accepted by government agencies, believesVictoria Valenskaya, Head of the international agency "Culture".It remains possible to purchase several objects so that their total cadastral value meets the threshold. However, there are pitfalls here too.:The cadastral value of objects decreases over time. That is, even if the requirements were met at the time of purchase, there may be a risk of inconsistency when extending the residence permit, warns Svetlana Zamotina.
The procedure for extending a residence permit based on the ownership of the property has also become more complicated. Now it is necessary to confirm the payment of the property tax for the previous year, for which you need to contact the community separately for a certificate, which you have to wait up to eight working days.
At the same time, it is still possible to extend the residence permit for real estate for the current year 2026, owning a house or apartment of any value. But whether it will be possible to extend the residence permit for owners of real estate worth less than 150,000 in 2027 is still unknown," says Ekaterina Zubrilina.Important point: the requirements for the actual residence of a resident have been tightened (applies to all residents) in Montenegro for prolongation of the status: the time of absence in the country is limited to 30 days, and the deadline for submitting documents for extension has been shifted: now it needs to be done 60-30 days before the end of the residence permit.
2. Residence permit for company ownership. Business immigration has also been affected by the changes. "Previously, many foreigners opened so-called zero companies, where the director was the only employee, paid a salary to one person and taxes were deducted from her," says Ekaterina Zubrilina.
Now in order to extend the residence permit on the basis of the directorship, the company must confirm the payment of taxes and social contributions in the amount of at least 5,000 euros per year. The new amendment will enter into force in January 2027.
"This immediately cut off some small businesses and sole proprietors, for whom such a burden is not economically justified," says Svetlana Zamotina.
The changes apply only to citizens of non-EU countries. "EU citizens, as well as EEA and Swiss citizens, are in a more privileged position. As a result, the market has actually split into two categories of residents," the expert notes.3. Special conditions for medical and IT sector workers. There are also positive changes. Extended residence permit period for employees of the IT sector and the medical sector. Previously, they received a residence permit on a general basis for a year with the possibility of extension for a maximum of two years. Now a foreigner will be able to obtain a temporary residence and work permit for up to three years and extend it for up to three more years. For healthcare workers, additional confirmation of the level of education and professional qualifications is required. At the same time, you must have an employment contract for a period of 12 months.
"This is a good signal: Montenegro is still interested in those who really work, benefit the economy and plan to live here not formally, but seriously," Victoria Valenskaya believes.
Who is in the vulnerable group?
The new law has hit two categories of foreigners the hardest. The first is the directors of companies, especially those that were used more as a formal basis for living, rather than as a real business."From 2027, it will no longer be possible to count on the extension of a residence permit, having a zero company: you can open a company and apply for the first residence permit, but you can extend the status after a year only if taxes are paid at least 5,000 euros," explains Ekaterina Zubrilina.
Many owners of small companies and individual entrepreneurs working for themselves, mainly in the service sector, assessed their capabilities and came to the conclusion that they were not ready to bear the annual tax burden of 5,000 euros.
The second is foreigners who plan to obtain a permanent residence permit in the future, as well as those who expected to buy real estate worth less than 150,000 euros.
The problem here is that obtaining permanent residence in Montenegro requires five years of continuous residence on the basis of a residence permit. Therefore, it is critical not only to get the first residence permit, but also to extend it from year to year. It is at the extension stage that there are now more requirements and, consequently, more risks," explains Vyacheslav Mayevsky, expert of the international agency "Culture".Is there an outflow of foreigners from Montenegro?
The reform has already led to migration. Some people leave for the EU and Serbia. According to the observations of Svetlana Zamotina and her colleagues, there are about 30% of such people among Russians.Ekaterina Zubrilina confirms this: "Indeed, there is an outflow of foreigners in Montenegro due to the tightening of the law. They are leaving because of the upcoming increase in the cost of extending their residence permit and the inability to buy an apartment or a house for 150,000. Some people just "didn't like" the country."
At the same time, there remains another category - those who are already integrated into the country, have a steady income and long-term plans. These people do not leave, but they begin to calculate their expenses and living strategy more carefully.In general, the mood among immigrants has become more cautious. Previously, Montenegro was perceived as the easiest relocation option.,Now, as one of the options that needs to be compared and carefully calculated, Svetlana Zamotina argues.
"It would be wrong to say that it has become radically more difficult to obtain a residence permit in Montenegro," Victoria Valenskaya believes. "Rather, the law is aimed at combating zero-sum companies and formal schemes. The logic of the changes is not to close the country to foreigners, but to remove fictitious grounds and make the system less formal, Vyacheslav Mayevsky emphasizes.
Many foreigners continue to live in the country, because there are still many opportunities to obtain a residence permit, concludes Ekaterina Zubrilina.
Law enforcement practice: milder than feared
The most nervous period occurred during the discussion of the law and the first weeks after its adoption.
"From about October to December of last year, as well as in early January, there was a lot of anxiety in the market and in the immigrant community. And what scared people in the first place was not the text of the law itself, but the lack of clarity on its application," Vyacheslav Mayevsky recalls.At that moment, the toughest scenarios were actively discussed: mandatory hiring of local citizens, additional costs, new requirements that many perceived as excessive. Against the background of this uncertainty, some foreigners actually decided to leave or at least put their plans on hold.
However, when the situation began to clear up and it became clear that the practice of applying the law was not as dramatic as many had feared, the general background became noticeably calmer.
"Now we can no longer talk about some kind of mass flight of foreigners from Montenegro. The main wave of anxiety has subsided, and most people have taken a more pragmatic position," says Svetlana Zamotina.
"In practice, the law turned out to be softer than the initial fears. This is a typical story for any period of change: the market and people always react more strongly to uncertainty than to the rules themselves. When there is understanding, the degree of anxiety decreases," Vyacheslav Mayevsky summarizes.
How has the law affected the Montenegrin real estate market?
The new law has dramatically changed the behavior of customers.According to Ekaterina Zubrilina, the deadline for buying real estate in the country has fallen, but not critically. People still want to buy an apartment or a house by the sea, because there are many buyers who do not need to open a residence permit in Montenegro. The amendments to the law do not apply to buyers from EU countries.
The main change: the model of buying a residence permit at any price has disappeared. The buyer began to consider not only the cost of the object, but also taxes, maintenance, and renewal risks. As a result, transactions have become longer and more complex, the number of refusals has increased, and impulsivity has decreased, Svetlana Zamotina notes.
The low-cost segment, which was previously actively bought "for documents," is losing some of its audience. At the same time, interest in liquid objects remains, but not because of the residence permit, but because of the investment logic: leasing, resale in the future.
It is important to note that by itself, the transition of buyers to the segment of "150,000 euros" did not lead to an increase in demand. "On the contrary, there is a gap between sellers' expectations and buyers' real willingness to pay," the expert shares his observations.
At the same time, the market did not stop. Buyers from other segments have become noticeably more active. There has been more interest from Serbian citizens. Local residents have also become more active, using, among other things, mortgage and other credit instruments. The activity of the Balkan diaspora is noticeable, which lives in different countries of the world, but returns to the idea of buying real estate in their homeland as a family asset. European buyers also remain interested: for them, the migration factor is often not the main factor, and Montenegro remains attractive as a country by the sea and a tourist destination.
The rental market has become more sensitive.If some foreigners leave, it affects long-term rentals. Prices are already declining compared to the level of two years ago. Offers in the long-term rental market exceed demand," says Svetlana Zamotina.
"In terms of prices, the market is currently undergoing a restructuring phase. There is no sharp drop, but there is no previous boom either. This makes the market more rational and, in a sense, healthier," Vyacheslav Mayevsky believes.
What else has a noticeable impact on the housing market?
The situation in the real estate market is complicated by another factor - the law on the legalization of illegal buildings.
"In Montenegro, indeed, a significant part of the housing stock has legal features, from deviations in area to incompletely designed objects. And this led to the withdrawal of most of the objects from the purchase and sale market. The legalization program has significantly slowed down the market," says Svetlana Zamotina.
On February 13, 2026, amendments to the law were adopted, which potentially open up the possibility for the turnover of facilities without an operating permit. This is an important signal for the market: we are talking about the possibility of gradually bringing into full-fledged circulation a significant array of real estate, which was previously considered problematic or of limited liquidity, explains Victoria Valenskaya. However, in practice, uncertainty remains: there is still insufficient clarity on the procedure, and market participants are waiting for clarification of the rules of the game.The prospect of Montenegro joining the EU remains one of the key factors supporting interest in the market, as this may give it an additional boost.
"If earlier it was more of an emotional driver ("entering Europe"), now it has become more rational. Investors evaluate not only the growth prospects, but also the current entry and ownership conditions," notes Svetlana Zamotina.
Forecast: time for thoughtful buyers
The market is being rebuilt. Some of the random demand goes away, and a more informed buyer arrives.
The market has become much more complicated over the past six months, but the basic attractiveness of Montenegro has not disappeared. It is still a compact, understandable, very attractive country for living and recreation with a strong tourist component, Vyacheslav Mayevsky emphasizes. The most likely scenario is a gradual stabilization of the market after an adjustment period.Buying a property in Montenegro is still justified if there is a clear goal.
If the goal is investment, first of all it is worth looking at the resort regions, where there is a steady interest from tourists and buyers from abroad. These are the coast, primarily Bar, Budva, Tivat and promising locations around them. This is where it is more likely to maintain liquidity and capitalize on the rising cost.
If the goal is personal living, you need to start from a lifestyle, taking into account such factors as the availability of infrastructure and the impact of seasonality on it, the availability of schools, the level of medicine, the development of transport, the density of buildings, and the quality of the environment. Here, the choice of region is more individual.
If the goal is a combined strategy (living by yourself part of the year, renting out part of the year), Montenegro also remains interesting, especially in locations with a tourist flow and demand for long-term accommodation.
If the goal is only to get a residence permit, then the strategy has become much more complicated and requires precise calculation.
"It should be noted that the laws on obtaining a residence permit are being tightened in many countries. In Serbia, the conditions for obtaining a residence permit cannot be called extremely affordable. As they say, "it's good where we don't exist," adds Ekaterina Zubrilina.
The main conclusion is that the Montenegrin market now requires a more attentive approach than it did a few years ago, but this is what makes it interesting for a thoughtful buyer, Victoria Valenskaya sums up.According to Svetlana Zamotina, Montenegro remains an attractive country for those who are in love with it, and is no longer an "easy solution." Now it's a market where you need to understand not only the price of an object, but also the rules of the game.
Thank you for your help in preparing the material:
Victoria Valenskaya, head, and Vyacheslav Mayevsky, an expert at the international agency "Culture"
Svetlana Zamotina, director of the agency Tradegoria
Ekaterina Zubrilina, an expert at the agency
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