Foreign Direct Investment in Montenegro

According to data from the 2020 World Investment Report, total foreign direct investment in Montenegro hit over €500m in the first 11 months of 2020, and though this was a decrease from over €700m in 2019, it’s still extremely positive for a relatively small country, with a population of around 622,000 people.
Over the last 10 years, foreign investment in Montenegro has accounted for nearly €7.7bn euros, and from a property perspective, €1.93bn of that total investment was in Real Estate, and global predictions are that this will continue to rise, as even with Covid-19, Montenegro is a country that enjoys fabulous economic freedom, backed by monetary stability.

Continuing with a positive theme & a positive outlook for when the global restrictions are retracted, Montenegro’s annual GDP growth in 2019 was 4.06% and its total investment rate was a whopping 30.22% of its GDP in 2017.
Most direct investments into Montenegro over the last 10 years were from the Russian Federation, with Italy in second and Austria in third. Other high nations included Switzerland, Serbia, the Netherlands, UAE, Slovenia, Hungary and Norway. Investment from the UK came in at around €235m.

One of the highest contributors in the Real Estate sector has been due to the launch of the ‘Citizenship by Investment programme which will (by the end of 2021) will allow up to 2000 foreigners to get a Montenegrin passport after an initial investment of €350,000, and so far, this is going very well, with a good uptake of foreigners taking advantage of one of the lowest ‘golden visa’ programs in the world.

If you have considered an Investment in Montenegro, then here’s why it’s advantageous, based on a report from Lloyds Bank Trade: https://www.lloydsbanktrade.com/en/market-potential/montenegro/investment

A highly competitive tax system (9% rate)
High touristic potential (and it’s growing fast)
Negotiations for access to the EU
Good quality of education and health systems
Simplified registration procedures

Local privatisations processes (meaning you can own land in Montenegro on the same terms as the locals)
If you’re looking to do business here, then in terms of ‘ease of doing business’ Montenegro ranks 50th out of 190 economies globally, so it’s highly attractive and highly stable!

05.04.2021