After the Foreigners’ Act announced in August 2022 new temporary residence permit regime for digital nomads, the Ministry of Interior has now enacted a bylaw which regulates the details of the procedure and documents required for the permit.
Entry into Montenegro
While the Foreigners’ Act remained ambiguous as to whether an applicant must enter Montenegro with type D visa (long term visa) in order to apply for temporary residence permit even if from a country to which Montenegro applies a visa-free regime, the bylaw makes it clear that the type D visa is not necessary in such cases.
The foreigner applying for temporary residence as digital nomad must satisfy the following specific conditions, besides the general ones applicable to standard temporary residence permit based on employment:
(i) income earned in the previous year must be at least equal to three minimal salaries in Montenegro (EUR 1,350).
(ii) proof of accommodation in Montenegro can be either (a) evidence of ownership of a real estate in Montenegro in which they will be residing; or (b) a notarised lease agreement, or (c) a confirmation from a registered accommodation provider, such as hotel.
The applicant must submit a request for the permit in person but may appoint someone else to take the permit when ready.
Income tax relief
With the regulatory framework applicable to digital nomad permit now being completed, the 2021 provisions on tax incentives will become meaningful. The Personal Income Act provides that a foreigner with temporary residence permit in Montenegro who earns income as a free-lancer providing services to clients abroad and earns in Montenegro more than a triple average gross salary in the country, according to the statistical data for the previous year (presently, this is EUR 2,973), is exempt from the obligation to pay personal income tax in Montenegro.