The government of Montenegro has finally opened its citizenship-by-investment programme to high net worth investors (HNWIs).
Initially, International Adviser reported it was going to accept applications for the scheme from 1 January 2019, but no reason was provided for the delay.
In order to qualify, HNWIs would need to make one of two available contributions to the Montenegrin government:
- An investment of €450,000 (£400,470, $494,093) to real estate projects in Podgorica, the country’s capital, or in the coastal regions, or;
- A €250,000 investment in real estate projects in northern or central Montenegro.
Wide access
Applicants will need to contribute an additional €100,000, which will go towards a special fund for the “advancement of underdeveloped areas”, said investment migration law firm Henley & Partners, which is also one of the three agents appointed for the scheme.
An application fee of €15,000 per single applicant is also required, and €10,000 for up to three family members which will rise to €50,000 for any additional member after that.
The programme, which entails a three-month decision process, offers “visa-free or visa-on-arrival access to 122 countries including Europe’s Schengen Area, Russia and Turkey,” the firm said.
“When properly implemented and managed, investment migration programs offer countries a means of tapping into a revenue stream that almost guarantees resilience and growth,” said Juerg Steffen, chief executive of Henley & Partners.
Controversy
Citizenship-by-investment programmes, however, have been widely criticised as they can pose security risks.
In March 2019, the European Commission urged all member states to “phase out” any existing schemes of the sort, as they could undermine cooperation efforts across the bloc.
Such schemes “jeopardise the principle of sincere cooperation” and “have significantly increased the political, economic and security risks for European countries”, the Commission said.
Henley & Partners was involved in a similar programme in Moldova, where people who would invest at least £1m in real estate developments in Dubai, would be offered a Moldovan passport.
Similarly, the UK ‘s golden visa scheme came under fire for money laundering and organised crime concerns, forcing the British the government to shut down and then re-open the programme, which is currently undergoing reforms.
