Montenegro's Temporary Residence and Work Permit enables foreign nationals to establish and operate a business in Montenegro by registering a company and serving as its executive director. Governed by the Law on Foreigners (Zakon o strancima), the program is administered by the Ministry of Internal Affairs for residence and the Employment Bureau for work permits. Company founders and executive directors are exempt from annual work permit quotas, so permits are available regardless of foreign worker limits. Amendments adopted in January 2026 introduced a minimum annual tax and contributions threshold for permit renewals.
The permit is granted for up to 1 year and is renewable annually, with the extension application submitted before the current permit expires. As of January 2026, renewal eligibility requires the company to demonstrate at least €5,000 in taxes and contributions paid in the previous year. After 5 years of continuous temporary residence, holders may apply for permanent residence; citizenship may be pursued after 10 years of continuous residence.
Spouses and minor children (including adopted children up to age 18) may obtain temporary residence through family reunification; the January 2026 amendments also recognise same-sex partners. Each family member submits a separate application with their own documentation, and family permits cannot exceed the duration of the main holder's permit.
Corporate income tax is 9% on annual profits up to €100,000 and 15% on profits above that threshold. Tax residency is generally established after 183 days of presence in Montenegro. The holder must pay standard payroll taxes and social contributions on their director's salary and file tax reports on time — and, since January 2026, sustain at least €5,000 in annual taxes and contributions to support renewals.
The process involves several steps: register a company with the Central Register of the Commercial Court in Podgorica, obtain a work permit from the Employment Bureau, then submit the residence application in person at the Ministry of Internal Affairs in your municipality. Biometric data is collected during submission. Citizens of visa-exempt countries can enter Montenegro visa-free for up to 90 days and apply during that period; those requiring a visa must first obtain a Type D long-stay visa.
Processing typically takes 15 to 20 days from submission of a complete application, with a legal maximum of 40 days. The total timeline from company registration to receiving the residence permit is usually 3 to 6 weeks. The January 2026 amendments introduced optional electronic submission through a new Visa Information System, though a physical appearance for biometrics is still required.
The permit authorizes the holder to work as executive director of their own registered company. Holders may not work for other employers unless a separate work permit is obtained. The permit is tied to the specific company — if it becomes inactive or is deregistered, the basis for residence is lost.