Montenegro is moving forward with a new wave of legislative reforms, from the digitalization of immigration procedures and clearer residency rules to real-estate measures aimed at improving compliance and market transparency, according to Prelevic Law Firm Partner Gorjana Lekovic, who also reports that the spotlight is on the new planning regulation, judicial efficiency, and a domestic bond program opening to retail investors.
Starting with the immigration framework, Lekovic says that there are "amendments scheduled for parliamentary debate in early November, and they are aimed squarely at modernization through digitalization. The draft law introduces faster and more transparent procedures, including online portals and simplified processing timelines. It also opens new pathways for digital nomads and foreign professionals seeking to work in Montenegro, a significant step in making the country more accessible for international talent." According to her, at the same time, the amendments seek to tighten residency requirements for foreign company founders and executives "holding more than 50% ownership: such companies will now need to employ at least three staff members, one of whom must be a Montenegrin national. The intent is to prevent the establishment of shell entities for the purpose of obtaining residence permits, though the measure may prove challenging for smaller startups or early-stage investors."
Over in the real estate sector, Lekovic mentions two key developments. "The first relates to new planning regulation introducing a 5% fee calculated on the estimated value of works from the revised main design, for developers who fail to complete a project within five years of construction permit issuance. This is intended to encourage better financial discipline, risk allocation, and project management from the outset," she explains. "The second is the implementation of the new Law on Legalization, which has effectively suspended transactions involving buildings lacking construction or usage permits. This has created a temporary freeze in the secondary property market. The legal community has questioned the scope and constitutionality of this measure, arguing that it conflicts with the right to peaceful enjoyment of property. For now, the issue remains open, and we are closely monitoring whether a constitutional review or legislative adjustment will follow," Lekovic elaborates.
Moreover, the judiciary has also been in the spotlight recently. "The system continues to face challenges in efficiency and backlog management. A recent one-hour judicial workforce strike, still in place, highlighted concerns over working conditions. The announced permanent strike has been suspended as negotiations with the government progress." As Lekovic explains it, persistent delays highlight the need for greater reliance on alternative dispute resolution – particularly arbitration and mediation – "which are emerging as viable tools to improve case flow and reduce pressure on the courts. Building greater trust in these mechanisms will be key to long-term judicial efficiency."
Furthermore, there was also recent talk in Montenegro of new financial instruments. "The government is issuing domestic bonds for the first time under a EUR 50 million program, offering a 3.75% annual return. Subscriptions will be open between November 3 and 18, 2025, through six partner banks, with a minimum threshold of EUR 500. This initiative should strengthen domestic investment channels and send a positive signal to both local and foreign investors about Montenegro’s fiscal stability and capital market potential," Lekovic reports.
Finally, Lekovic says that infrastructure and green energy projects are gaining significant traction. "The tender for the second section of the Bar–Boljare motorway, valued at EUR 600 million and conducted under EBRD rules, has drawn strong interest from international bidders. Meanwhile, the Electric Company of Montenegro launched a EUR 58 million tender for battery energy storage systems, currently on hold pending the approval by the Ministry of Finance, but expected to resume in the upcoming months.” According to her, these developments indicate a maturing, financially sophisticated market, one increasingly aligned with EU standards. "For law firms, this means more cross-border mandates, more complex project financing, and an increasingly international client base as Montenegro deepens its integration with the European market," Lekovic concludes.
