A Dream Home and the Right to Live in Europe.
The Balkan nation of Montenegro, located on the Adriatic Sea, is considered one of the most beautiful environments in Europe.
It’s not part of the European Union, although it’s working on joining.
That makes Montenegro, currently, the perfect place to take advantage of the “Schengen Hop.”
What is the Schengen Hop?
Well, you see, you can spend 90 days in the Schengen Area (29 countries in Europe—most of the continent) as a tourist, but then you have to leave the area for 90 days before returning.
But by spending that time in a European country that’s not in Schengen—like Montenegro—you can remain on the European continent all year round…
Montenegro’s short-term stay visa allows Americans and Canadians to stay for up to 90 days within a six-month period from the date of your first entry. In that respect it’s just like the Schengen rules—you can spend a total of 90 days in the country out of the 180 days that starts with your first arrival.
There’s also a long-term stay visa. This allows you to stay for up to six months within the 12-month period that starts with your arrival. You must show sufficient funds to support yourself; accommodation; health insurance; and a valid reason to want to stay.
If you want to stay for longer, you can apply for a temporary residence permit.
If you’re thinking of spending more time in Montenegro… For example, if you’re interested in taking advantage of Ronan’s RETA deal… There is some important information you should know.
The easiest way to get a residency permit is by buying a residential property.
When you buy residential property—you’ll be entitled to a temporary residency permit. There’s no minimum value on the property, but it must be habitable. The permit is valid for a year and can be renewed if you continue to own the property. There is no specific income requirement, but you need to have at least €3,650 in a Montenegrin bank account.
The one catch is that you can’t spend more than 90 days outside Montenegro during any 12 month period. Doing so could cause your renewal to be refused. (Also note that you can’t use the national healthcare system with this type of residency.)
Another route to a temporary residency permit is to register a limited liability company (LLC) in Montenegro and employ yourself as the executive director. The company can have its main business elsewhere—ideal for digital nomads and consultants. You must pay yourself at least €570 a month, which includes taxes and social contributions. The advantage is that there’s no maximum time limit outside the country. It also allows you to work other jobs as well… and you can take advantage of the national healthcare system.
The third option is a bit of an oddball. Montenegro is a popular location for yachting. Owners and crew of boats with a marina booking of longer than 90 days can get temporary residency in the country as long as the boat is located there. Unlike the residential property option, this allows you to be out of Montenegro for more than 90 days a year without penalty.
After five years in Montenegro as a temporary resident, you can apply for “permanent” residency. It’s not actually permanent, since it lasts for five years and must be renewed regularly.
Do note that you become liable for Montenegrin taxes once you’ve lived in the country for 183 days out of the year. Rates range between 9% (up to €1,000 a month) and 15%. Municipalities in Montenegro charge a local tax of 13% to 15% of what you’ve paid Montenegro’s federal government.
By all accounts, Montenegro is one of the easier countries in Europe to get residency… and the tax rates are appealing too. (Montenegro doesn’t have a double taxation treaty with the US, but the IRS should give you credit for taxes paid to their government.)
Montenegro is working hard to attract foreign money.
And there’s another perk…
If the country’s government stays in the EU’s good books, becoming a Montenegrin permanent resident could someday make you eligible for the benefits of European Union residency as well.
(If you want to learn more about Montenegro and the opportunities there—check out Real Estate Trend Alert founder Ronan McMahon’s briefing right here.)
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