At the session held on December 19, 2024, the Government of Montenegro adopted the Bill of Law on Construction of Buildings and the Bill of Law on Spatial Planning. It was proposed that these laws should be adopted through an expedited procedure.

Montenegro’s real estate sector is undergoing significant transformations due to recent legislative changes and proposed reforms, particularly in the tourism sector. These novelties will impact investors, developers, and most certainly the entire economy of Montenegro, but it remains debatable if the impact will be positive.

From September 2024, the Montenegrin Parliament passed a series of tax legislative amendments aligned with the country’s Fiscal Strategy for 2024-2027. Set to take effect on January 1, 2025, these reforms aim to increase budget revenues to offset recent reductions in labor taxes and improve the business environment. The changes affect the Corporate Income Tax Law, Personal Income Tax Law, VAT Law, Law on the Write-off of Interest on Outstanding Tax Liabilities, and Excise Law, focusing on modernizing the tax system and stimulating investments primarily in the agricultural sector.

Central and Eastern Europe is increasingly on the radar of digital nomads seeking new destinations. The countries they flock to see their markets impacted – for better or worse – with both opportunities and challenges aplenty. Babic & Partners Partner Marija Gregoric and JPM & Partners Partner Jelena Nikolic analyze these impacts.

Harrisons, working with Bird & Bird, has advised the EBRD on a EUR 20 million loan to Serbia and Montenegro Air Traffic Services SMATSA.

Montenegro-based Jovovic, Mugosa & Vukovic and Serbia-based Zivkovic Samardzic have joined the South East Europe Legal Group.

Moravcevic, Vojnovic and Partners in cooperation with Schoenherr has advised Agri Europe Cyprus on its acquisition of a 74.94% stake in Hipotekarna Banka Podgorica. Komnenic & Partners advised a group of corporate, family, and individual sellers.

Montenegro is seeing major changes with the election of a new Supreme Court President, the creation of a state-owned development bank, and tax reforms under the Europe Now 2 program, aligning the country with EU standards, according to Vujacic Law Office Partner Jelena Vujisic.

Harrisons, working with Bird & Bird, has advised the EBRD on its EUR 10 million loan to Hipotekarna Banka Podgorica, secured with EU Supranational Bonds.

JPM Partners has advised Presto Pay on obtaining a payment institution license from the Central Bank of Montenegro.

JPM Partners has successfully represented the Montenegrin Agency for Audiovisual Media Services in an administrative dispute initiated by the Serbia-based Pink Media Group.

The Misdemeanor Court in Podgorica recently imposed a fine of EUR 806,953.09 on the telecommunications company M:tel doo Podgorica (“M:tel”) for the acquisition, by its related Serbian company, of 50% shares in the Slovenian company Arena Sport doo Ljubljana (“Arena Sport”).

The Law on the Waiver of Interest on Outstanding Tax Obligations (“Law”) has been officially adopted and will take effect on 1 January 2025. This Law allows for the waiver of unpaid interest on tax obligations that became due before 31 December 2024.

The new Waste Management Law of Montenegro (“the Law”), which came into force on April 12, 2024, represents a step further towards harmonizing Montenegrin legislation with the acquis communautaire, namely key European Union (“EU”) directives in the area of waste management.

Montenegro’s financial sector is experiencing growth with record-high deposits and increasing trust in the banking system while advancing infrastructure projects and tapping into renewable energy opportunities, according to Keker, Bujkovic & Pejovic Partner Milan Keker.

Recently, the Parliament of Montenegro has amended the labour regulations by adopting two amendments to the Labour Law in August and September 2024, and by adopting the amendments to the Law on Contributions for Mandatory Social Insurance in September 2024.

On 19 September 2024, BDK Advokati celebrated 20 years since its establishment. BDK Advokati Managing Partner Tijana Kojovic and Senior Partner and Head of the Montenegrin office Luka Popovic reflect on this milestone and discuss the journey of the firm, its evolution, achievements, and aspirations for the future.

Montenegro is not a member state of the European Union but rather a candidate country for membership, which status was granted on December 17, 2010.  As such, European Union regulations are not directly applicable in Montenegro, however, many regulations have been harmonized with EU directives as a result of the harmonization process (acquis Communautaire).