Depending on which country you’re coming from, and what you can afford, if moving to Montenegro in 2023 you’ll be in for a very different experience from a year ago. The this blog is about our experiences during March 2023 and some of the issues that can be experienced (see my blogs on my similar experiences with Bulgaria).
I am from Australia which does tend to make a short term stay pretty comfortable as I can stay 90 days in every 180. For residency I can buy property or open a company, study, marry a local or I’ve heard even arriving and staying long term at a marina on a yacht!
I can easily access my Australian and international bank accounts, use ATM’s etc. Language is a problem so need to put in some study time but overall, it’s pretty an easy place to adapt to. But not so easy for everyone…
The Impact of the war in Ukraine.
Compare this with for example the current Russian diaspora. There is an appalling war going on (Putin, it’s not a ‘special operation’ as you euphemistically call it, it’s your war) Russian tourists have traditionally loved visiting Montenegro, now they have been moving to Montenegro as with other countries to try and gain residency to leave Russia.
As a result, their relatively large numbers (as with Ukrainian folk moving here) have created a perfect environment for certain businesses and banks to see them as financial ‘opportunities’.
Prices have increased.
The result affects everyone visiting here. Rental prices have gone through the roof, doubling in some cases since the beginning of the war. Now anyone looking for a place to live, either short or long-term having to pay far more for rentals to what they were 12 months ago.
Furthermore, we have experienced many local agents practicing ‘bait and switch’ tactics. Websites show available apartments for rent at a certain affordable price, then when you contact them (by the way, they rarely call you back) they say Oh NO! we have nothing for that price, then mention the only available apartments available are at 30% to 50% higher…).
There are decent agents out there as we have found. You’re best to get a referral from locals you know or contact enough agents to find the legitimately decent ones.
Banking.
Back in 2013 I was staying in Montenegro for 3 months I walked into the local bank and opened an account, received my debit card within a week or so and all was well.
2023 things are very different.
To open a personal bank account requires paying certain banks at least a 300€ fee. With help from a lawyer (Advokat) add another 500€ minimum. I have been quoted as high as 1500€ to open a personal account here.
If you open a bank account from a non-Montenegrin company, then the charge quoted was to be 3000€! What’s amazing is that the banks have only bought in these charges since early this year and there seems to be no legal reason allowing them to do so. Insane.
Another issue will be that if setting up a personal non-resident account some banks may not allow you to do so. We tried two major banks and were told not all nationalities will be allowed to open a personal bank account without residency.
‘Even the lawyers are at a loss as to what’s happening as things are moving so fast’.
ATM/Bankomat fees
So far, the fee for withdrawing any amount from a Montenegrin ATM here has been 5€ per transaction irrespective of how much you’re withdrawing.
I had read on forums that there would be none or at least a minimal fee if using the main bank ATM’s. Supposedly, a charge would be only for the ATM’s not aligned with a bank. Not true.
I did find a major Erste branch near Velika Pijaca in Podgorica that was fee free, so things can be pretty inconsistent.
Using Lawyers to establish a Montenegrin company for residency purposes.
Be very wary of lawyers advertising online low fees to assist with assisting with setting up a company and subsequent residency. Apart from the recent bank set up charges, the cost of setting up a company and then establishing your residency seems to be a happy hunting ground for lawyers.
One lawyer had advertised in February their fees for a company set up as 630€, with residency we had estimated their charge would be around 1700€.
By the time the face-to-face meetings started they announced a 1500€ fee for the company (plus you pay around 200 € for other services such as translations, notarization, power of attorney etc) then for two people a residency fee of near 2800€ plus the 1500€ bank account came to the grand total of 5500€!
To give you perspective, our current lawyer will do all of the above for around 2800€. Around half the price! (Just remember to add 21% VAT!)
Once you have a company set up there will be ongoing monthly fees.
Director’s fee of minimum 150€/month, these will reciprocate back to you as wages.
Accounting fees – we were quoted two, one was 75€/month and the other 150€/month.
If you use the lawyer’s office as your virtual office. Count on around 75 to 100€ per month. Or use your own address then there’s no need to pay for a virtual office.
Our experience has been regarding residency through setting up a company so I can’t yet say what the costs will be for other forms of gaining residency.
Dealing with Bureaucracy.
You will most likely run into bureaucratic challenges along the way. The rules are not so set in cement and seem to be changing regularly so it’s better to question anything with an “Are you sure?” when discussing with lawyers, banks etc. Get it in writing if you can.
Our current lawyer double check with the authorities recently on the requirement for a particular Apostille from Russia being needed. Word was that it was necessary but after their enquiring with the government, after questioning it, they found it wasn’t. A great relief as a return trip to Russia for that individual would have otherwise been necessary
Don’t rely on old information.
There are plenty of websites offering information about Montenegrin residency. Many are being rendered out of date within weeks. Even my post here will no doubt have changed over the coming weeks and months.
Build your team.
So, best to be prepared, find a good lawyer, accountant, property agent or two and a decent bank. They all make up your ‘A-team’ to help make your move to Montenegro go as smoothly as possible.
Overall experience.
Moving to Montenegro has had its ups and downs, mainly this past fourteen months due to the war in Ukraine. A massive influx of primarily Russian citizens looking to escape Russia and potential conscription has put a fair strain on the property market. Banks, agents, lawyers and accountants are often charging higher fees (some exorbitant) so expect this to stay the same for a while yet.
Besides this Montenegro has been a very positive experience and well worth taking more time to get to know this very small, very new, very beautiful country and it’s people.
