Residence via a Company in Montenegro and the €5,000 Tax Rule

Summary: Obtaining a work–residence permit by forming a company in Montenegro is possible. But from 17 January 2026, to renew this permit the company must have paid at least €5,000 in tax and social security in the previous year. EU/EFTA/Switzerland citizens are exempt. The rule aims to weed out “paper” companies.

Who is covered?

Foreigners holding more than 51% of shares or who are the executive director of a Montenegrin company. Renewal of their integrated work–residence permit is tied to the company meeting the minimum tax base.

What exactly is the €5,000 requirement?

The company is expected to have paid at least €5,000 in tax and social security combined during the previous year. In other words, the company must have a genuine activity and an associated tax/contribution burden.

Why was it introduced?

Previously, some foreigners formed non-operating companies solely to obtain residence. The new rule closes this “shell company” route; it ties residence to genuine economic activity.

What it means for you

  • You should build your company on genuine activity and put accounting in order from the start.
  • You should do annual tax/social-security planning with the renewal timeline in mind.
  • Planning the company + residence process together is critical to avoid surprises later.

Alternative routes

If the company route doesn’t suit you, real estate (≥€150,000 tax value), family reunification or the digital nomad route can be considered. We determine which route suits according to your situation.

Frequently asked questions

Is residence finalized as soon as I form a company?
The company provides a basis; the permit is a separate process and the €5,000 requirement applies at renewal.
What if I can't pay the €5,000?
Renewal is at risk. The company must therefore carry a genuine activity and tax base.
Are EU citizens exempt?
Yes; EU/EFTA/Switzerland citizens are exempt from this requirement.