How to Get a Montenegro Passport
Most CBI programs out there require you to make one contribution to the country, be it a donation, an investment in real estate, or setting up a local company.
But knowing that EU membership is basically imminent, Montenegro has gone for a hybrid CBI program which requires you to make two contributions:
Donate €200,000 to a development fund
Purchase government-approved real estate worth €250,000 in northern or central region of Montenegro or deposit €450,000 in southern Montenegro, and hold for 5 years
If you’ve fulfilled both, and the international due diligence agent has revealed no cause for concern with you and your family (if applicable), you will be granted Montenegrin citizenship and be able to collect a passport.
Note, that there are also governmental fees to pay for your application processing and the amount will depend on your family setup:
€15,000 for a single applicant
€25,000 for a couple
€45,000 for a family of four
If the main applicant wants to bring dependent parents or grandparents, that will be an additional €50,000 per person
Then, the total outlay for a solo applicant making an investment in the cheaper north comes to €465,000.
A couple investing in the luxurious coastal area will have to shell out €675,000.
The Mandatory Donation
Let’s talk about the donation first. It’s mandatory for all Montenegro CBI program applicants to make this donation and its amount is firmly set at €200,000.
It’s a fund designated by the government to help underdeveloped areas of the country that would certainly not get foreign investment otherwise. These are mostly rural villages, away from the coastal and ski resorts of the country.
A donation is not unusual when it comes to CBI programs and other jurisdictions. For example, Antigua and Barbuda will ask for the same, only the amounts will differ.
Real Estate Investment
While some CBI programs will allow you to invest in any real estate that you deem suitable, others will make you stick to the officially approved properties, as does the Montenegro CBI.
The list of such properties is currently inaccessible on the official website of the program – perhaps the perfect metaphor of the new program and how inexperienced the government and its officials are in running it.
However, from the few snippets available online, you can only invest in hotels and resorts. For instance, the Queen’s Boka Place in the Budva Riviera and Hotel Montis in the north.
So, while there is a huge stock of cheap investment properties lying around in Montenegro, you’re highly limited if you want to get the passport.
An alternative here would be to buy whichever property you’d like and aim to become a permanent resident.
However, if you’re set on the program but don’t know how to get a Montenegrin passport, you’ll need to become the proud owner of an apartment or a condo in a resort of some sort.
Another important thing about investing in Montenegrin real estate is that the Montenegro CBI program has split the country into two distinct regions – the northern and the southern – and depending on where you want to invest, the amount will differ.
If you want to invest in the highly developed south, essentially the Adriatic coast, you will need to spend €450,000. Meanwhile, if you want to lower your investment, you can make a purchase worth at least €250,000 in the northern part of the country.
There is a VAT of 19% charged in Montenegro, so you will want to invest the bare minimum so as not to add to your total bill too much.
However, Montenegro has tax incentives for certain investors with no VAT whatsoever.
This is valid for investors in high-end tourism who invest in government-approved properties, dropping the 21% overprice when buying the property.
Montenegro also doesn’t charge the RETT of 3% of these properties either.
The good news is that the investment is recoupable. In other words, you will be able to sell it after a holding period of five years.
Hopefully, you will also sell at a higher price and offset some of the €100,000 donations too.
Montenegro’s coastline is a hidden gem full of stunning views and world-class marinas.
The South of Montenegro + Podgorica
The south of Montenegro basically spans the entire coast of 300km. Towns like Budva, Herceg Novi, and Tivat – the entire Bay of Kotor – are where the luxury-dripping villas and yachts filled with champagne are located.
The aforementioned Porto Montenegro, a world-class marina, harbors some of those yachts. And even though the marina is now owned by the Investment Corporation of Dubai, which shelled out $200 million for it, there is still plenty of Adriatic charm left in the old walled villages.
And if you want to invest in the capital of Podgorica instead, you will also need to invest the €450,000 amount.
Real estate is quite liquid in both of these places, so it shouldn’t be a problem to sell and even make a profit. You could also try renting, which will bring an estimated 4-6% annual return.
The North of Montenegro
And then there is the northern part of Montenegro, which is mostly undeveloped.
However, given how pristine the nature of the north is, tourism has also picked up in this region. Lake Skadar, Kolasin and Zabljak are all places where you can invest just €250,000 to obtain a Montenegrin passport.
The town of Zabljak, surrounded by untouched mountains, has plenty of outdoor and extreme sports opportunities.
Tara Canyon – the second deepest canyon in the world – is nearby, part of Durmitor National Park.
Alternatively, you could go to a ski resort in Kolasin or a hotel in the Lake Skadar region.
There is no doubt in our mind that with the growing numbers of tourists and foreign investment, the region will come to life.
Source link : https://nomadcapitalist.com/global-citizen/second-passport/montenegro-citizenship-by-investment/
Author :
Publish date : 2021-08-05 21:57:45
Copyright for syndicated content belongs to the linked Source.