Montenegro will stop granting citizenship to wealthy foreigners who invest in the Balkan country from January 1st, 2022 as the European Union, which it wants to join, doesn’t approve of the program.
The Montenegro Government during the 15th cabinet session has announced that the Special citizenship by investment program (Montenegro CIP) will not be extended following its expiration of 3-year duration until December 31th, 2021.
The cash-for-passport program, designed for those who would invest at least EUR 250,000 (USD $300,000), make a EUR 100,000 deposit and pay application fees, hasn’t brought in the revenue the previous administration had hoped for.
According to newest update from the Montenegro Government, up to now only 131 applications for Montenegrin citizenship have been submitted to the Investment Agency, of which only 37 candidates have been approved under the Montenegro program that will end by the end of the current year, and were resolved positively, 12 applications were rejected due to the negative opinion of the International Eligibility Assessment Agent, while the remaining ones are in different stages of processing , the Montenegro government said in an emailed statement on Friday.
The decision to scratch the plan comes after the EU voiced “reservations” about the program, according to the statement.
The official announcement states: “The Cabinet adopted the Information on the activities of the implementation of the "Special investment programs of special importance for the business and economic interest of Montenegro", with proposals for further activities. The Information states that since the beginning of the implementation of the Special Program, 131 applications for Montenegrin citizenship have been submitted to the Investment Agency, of which 37 passed all checks and were resolved positively, 12 were rejected due to the negative opinion of the International Eligibility Assessment Agent, while the remaining ones are in different stages of processing. Having in mind the reservations of the European Commission on this issue due to the possible difficulties of Montenegro's path to the EU, as well as the questionable purpose of the Program and its contribution to economic development, given that only 37 citizenships of the planned limit of 2000 have been granted so far, the Cabinet decided that the Program should not be extended after the expiration of its three-year duration on 31 December 2021”.
The official announcement states: “The Cabinet adopted the Information on the activities of the implementation of the "Special investment programs of special importance for the business and economic interest of Montenegro", with proposals for further activities. The Information states that since the beginning of the implementation of the Special Program, 131 applications for Montenegrin citizenship have been submitted to the Investment Agency, of which 37 passed all checks and were resolved positively, 12 were rejected due to the negative opinion of the International Eligibility Assessment Agent, while the remaining ones are in different stages of processing. Having in mind the reservations of the European Commission on this issue due to the possible difficulties of Montenegro's path to the EU, as well as the questionable purpose of the Program and its contribution to economic development, given that only 37 citizenships of the planned limit of 2000 have been granted so far, the Cabinet decided that the Program should not be extended after the expiration of its three-year duration on 31 December 2021”.
Montenegro launched its special investor citizenship program back in 2018. Montenegro launched its Citizenship by Investment Program (CBIP) with the aim of encouraging and facilitating foreign direct investment. To apply, investors should hold a valid passport, have proof of no criminal record and be able to demonstrate that investment funds have been legally obtained.
The Montenegro investment agency administers the special citizenship program. Applicants can apply by investing in one of several government approved real estate development projects. So far 15 tourism hotel projects have been approved for Montenegro CIP purpose. The program was later expanded to attract investments in fisheries, agriculture and wood processing industries. The investment element ranges from EUR 250,000 in the northern and central region to EUR 450,000 in the coastal region. An additional government donation of EUR 100,000 is required, plus application and due diligence fees.
This will be the third Citizenship by Investment program (CIP) to be stopped after Moldova and Cyprus have closed doors to Citizenship by Investment (CBI) applicants.
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Source: Bloomberg