Recently, the government of Montenegro released new preferential policies for foreign investment. Want to know how favorable they are?Please read on.
I. Framework of Preferential Policies
Foreign investors in Montenegro enjoy national treatment.At the national level, incentive policies for foreign investment mainly include financial support, tax exemptions, and regional subsidies.
II. Financial Incentive Policies
The Investment and Development Fund of Montenegro provides financial support for small and medium-sized enterprises, infrastructure and environmental protection projects, exports, and employment through loans and guarantees.The Investment and Development Fund supports small and medium-sized enterprises through direct loans, bank intermediary loans, special loan arrangements, and guarantees, with loan interest rates generally ranging from 2.5% to 6.5%, a repayment period of 12 years, and a grace period of 4 years.Preferential loans are provided for projects in the northern region and the cities of Cetinje and Ulcinj, projects that create more than 5 new jobs, and projects that have obtained bank guarantees.
The Investment and Development Fund also cooperates with the Ministry of Agriculture of Montenegro to provide financial support for EU IPARD-like agricultural investment projects.
III. Tax Exemption Policies
1. Newly established enterprises in economically underdeveloped regions are exempt from corporate income tax for 8 years, except for enterprises engaged in basic agricultural production, transport, shipbuilding, fishing, or steel manufacturing.
2. Taxpayers in economically underdeveloped regions are exempt from personal income tax for 8 years, except for those engaged in basic agriculture, shipbuilding, fishing, or steel manufacturing.
3. Subsidies are provided to employers who hire individuals over 40 years old, Roma, Ashkali and Egyptians, individuals registered as unemployed with the Employment Agency for more than 5 years, public works construction workers, individuals without permanent employment after an internship, redundant technical personnel registered as unemployed with the Employment Agency, seasonal workers, unemployed individuals with more than 25 years of social insurance, and business owners in commercial zones. Specifically, the employer is not required to pay mandatory social insurance contributions and personal income tax for such employees.According to the regulations, the employee is also not required to pay mandatory social insurance contributions and personal income tax.
IV. Regional Incentive Policies
To improve the investment environment and enhance economic competitiveness, the government of Montenegro issued the "Decree on Encouraging Direct Investment and Enhancing Economic Competitiveness" in March 2019, providing financial support to investors based on public announcements:Enterprises that invest more than 500,000 euros in the capital and southern regions within 3 years and create more than 20 new jobs, or enterprises that invest more than 250,000 euros in the central region (excluding the capital) and northern region within 3 years and create more than 10 new jobs, can receive government investment incentive funds;the maximum government subsidy for large, medium, and small enterprises shall not exceed 50%, 60%, and 70% of the enterprise's investment amount, respectively.
Montenegro's economy is set for a leap in growth
As one of the fastest-growing economies in Europe, Montenegro has seen an average annual GDP growth rate of about 4% over the past 4 years since 2015.At the same time, the EU has provided Montenegro with development assistance totaling approximately 507 million euros to support its development and reforms, enabling it to meet EU standards as soon as possible.It is believed that with the support of the EU, Montenegro's economy will experience a leap in growth.
Montenegro is an ideal country for status and health planning, overseas business, and asset allocation
Currently, with the launch of the Montenegro Citizenship by Investment Program, it not only provides great convenience for investing in Montenegro but also opens a path for investors to obtain EU citizenship in the future. At that time, holding a Montenegrin passport will be upgraded to an EU passport, and its value is self-evident.Among the countries currently offering citizenship by investment programs, Montenegro is an EU candidate country from the EU's eastern expansion region that uses the euro as its legal currency. Its citizenship by investment program has advantages such as fast approval, short cycles, eligibility to apply for the US E-2 visa, and investment assets being in euros. It is an excellent destination for investors to conduct status and health planning, overseas business, and asset allocation!
Fast approval speed, with clients already successfully approved in just over 90 days
On February 11, a client received the approval document from the Montenegro Immigration Bureau, becoming the world's first client to receive an approval letter for the Montenegro Citizenship by Investment Program.The client submitted the application materials to the Montenegro Immigration Bureau in early November 2019 and received the approval letter in just over 90 days, which shows how highly efficient the Montenegrin government is.
Great news!The second citizenship by investment project approved by the government of Montenegro, "Breza Hotel," has been grandly released. The investment is only 250,000 euros, and the property can be sold after 5 years of holding. It features independent permanent property rights and a variety of high-quality unit types. First come, first served!
Investing in Montenegro and choosing tourism real estate with great development potential, "Breza Hotel" is the best choice for entering the Montenegrin market and achieving euro asset allocation!Starting from 350,000 euros, you can not only acquire a property with permanent property rights but also apply for a passport from Montenegro, an EU candidate country, for your whole family, achieving a win-win situation for overseas real estate and overseas status, killing two birds with one stone!
At the same time, in addition to the "Breza Hotel" project, the first citizenship by investment project approved by the government of Montenegro—the Westin Resort Hotel project—is also very popular among investors.The Westin Resort Hotel has a unique geographical location, situated at the well-known tourist attraction in Montenegro, the Kolašin 1450 Ski Center;currently, there are no competing products of the same level in the surrounding area. It offers permanent property rights, and the property can be sold after 5 years of holding, making it a "hot commodity" in the eyes of global investors.The Westin Resort Hotel is limited to 240 spots, and there are currently only a few dozen spots left globally, which shows its popularity!
In January 2020, the Westin Resort Hotel project received more good news.The developer has formulated a new series of favorable terms to protect investors and launched an optional buyback policy, whereby after the investor holds the property for 5 years, the developer can choose to buy it back within 1 year after the expiration date.
Recently, the prevention and control of the novel coronavirus epidemic is in a special period. While ensuring the safety of Worldway Group's clients and employees, Worldway Group fully resumed work on February 10, with office operations combining online and offline modes!In the face of the epidemic, we isolate the virus, not our services!During this period, Worldway Group has fully launched an online office mode, including online consultation, online submission, online customer service, etc.!If you have any needs, you can choose online consultation or contact us by phone at any time, and we will handle it for you in a timely manner.We would like to remind you again that the epidemic is fierce, and prevention is of paramount importance. Please strengthen your safety protection measures!
As a top 500 Asian brand, Worldway Group, as an active promoter of European investment immigration, maintains friendly exchanges, long-term interaction, and cooperation with the government of Montenegro, making it your best choice for obtaining a Montenegrin passport!
