Montenegro CIP will close from 2022

The Montenegro Government during the 15th cabinet session has announced that the Special citizenship by investment program will not be extended after its expiration of 3 year duration until Dec 31, 2021

The Montenegro CIP will close from Jan 1, 2022 due to pressure from EU and difficulty of Montenegro pursuing path to EU-acquis.

The CIP has failed to attract applicants and investments and the scheme did not become popular. The scheme was designed inhouse by government based on the below * GRANT + INVESTMENT.

Porto Montenegro Luxury Experience, Apartments Trivat

According to latest update from the Government, so far only 131 applications for Montenegrin citizenship have been submitted to the Investment Agency, of which 37 passed all checks and were resolved positively, 12 were rejected due to the negative opinion of the International Eligibility Assessment Agent, while the remaining ones are in different stages of processing.

The official announcement states

“Having in mind the reservations of the European Commission on this issue due to the possible difficulties of Montenegro’s path to the EU, as well as the questionable purpose of the Programme and its contribution to economic development, given that only 37 citizenships of the planned limit of 2000 have been granted so far, the Cabinet decided that the Programme should not be extended after the expiration of its three-year duration on 31 December 2021.”

Montenegro opened its special investor citizenship program for business and economic interest in 2018. The Montenegro investment agency administers the special citizenship program.

So far 15 tourism hotel projects has been approved for CIP purpose. The scheme was later expanded to attract investments in fisheries, agriculture and wood processing industries.

This will be the third CIP to be closed after Moldova and Cyprus have closed doors to CBI investors.

*MONTENEGRO GRANT + INVESTMENT

The Government opened new citizenship by investment program (CIP) with the aim of developing Montenegro, i.e. with the aim of attracting foreign investments that will intensify development projects in the sector of tourism, agriculture and processing industry in the entire area of Montenegro, both in the north and in the south, as well as faster development of under-developed municipalities of Montenegro.

The Montenegro government has clarified the new CIP will resemble the model of GRANT + INVESTMENT

Grant

A Grant shall refer to the amount intended for development of under-developed local self-government units. The amount of the grant shall be EUR 100,000 per application of an applicant, which is a total of EUR 200 million for 2,000 applications, that being an amount that will be intended for development of under-developed local self-government units.

Investment

The Investment shall refer to the amount intended for investment in one of the development projects from the Development Projects List that shall be defined by the Government at the proposal of the line ministries, while the amount that a legal entity shall be obliged to pay is as follows:

EUR 450,000, for the purpose of investing in one of the development projects in the Capital City of Podgorica or the coastal zone of Montenegro; or

EUR 250,000, for the purpose of investing in one of the development projects in the northern or central region of Montenegro, not including the Capital City of Podgorica.

Additional fees

EUR 15,000.00 for the applicant;

EUR 10,000.00 for each family member, up to four members at maximum;

EUR 50,000.00 for each next family member.

The investments for Grant and Investment will be deposited in an ESCROW account for the development of Montenegro

The citizenship also possible for large scale investments in tourism and agriculture projects. These projects will be listed by government soon

Large scale Tourism projects

Development projects involve construction of five star hotels or mixed-type complex in the coastal region or the Capital of Podgorica or at least four stars in the northern or central region save for the Capital of Podgorica, requiring atleast

Minimum of investment in the amount of EUR 15,000,000 in the coastal region or the Capital of Podgorica or

Minimum investment in the amount of EUR 5,000,000 in the northern or central region save for the Capital of Podgorica, and

Employing at least 80 employees in the coastal region or the Capital of Podgorica or at least 25 employees in the northern or central region save for the Capital of Podgorica,

Having at least 60 accommodation units in the coastal region or the Capital of Podgorica or at least 35 accommodation units in the northern or central region save for the Capital of Podgorica

Cancelation of citizenship

The Government has adopted a decision to cancel citizenship acquired under special citizenship scheme.

False or concealing information in application

Failing due diligence checks