According to Serbian Economist, Montenegro is drafting new regulations for home producers of rakija and other spirits as part of its efforts to align its legislation with EU requirements. Even small producers who make the beverage solely for their own consumption will be required to register with the Customs Service and declare their distillation equipment.
The regulations are contained in a draft of the new law. The law is set to take effect after Montenegro joins the European Union.
According to the draft, an individual will be able to produce up to 50 liters of strong fruit-based alcoholic beverage per year per household without paying excise tax. However, such a beverage may only be used for personal consumption, family members, and guests. The sale of homemade rakija under this regime will be prohibited.
A producer planning to produce more than 50 liters per year or sell the beverage will be required to register as a small distillery and pay excise tax. For strong alcoholic beverages, the rate remains at 1,250 euros per hectoliter of pure alcohol. This corresponds to €12.50 per liter of pure alcohol, and for rakia with an alcohol content of about 50%, approximately €6.25 per liter of finished beverage.
The draft also provides for the status of a small distillery. Such a distillery will be able to produce up to 1,500 liters of pure alcohol per year, which is equivalent to approximately 3,000 liters of 50% rakia. A preferential rate—50% of the standard excise tax on spirits—will apply to such producers.
The new rules significantly tighten control over home production. A small producer will be required to submit an application to the local Customs Service office at their place of residence no later than eight days before production begins. The application must specify the capacity of the still and the production location.
If a producer exceeds the 50-liter limit without notifying customs or begins selling the beverage without registration and excise accounting, the entire batch produced will be considered illegal. In this case, the customs authority may assess excise tax on the entire volume, not just the excess over the limit.
Several types of penalties are provided for violations. First, monetary fines for failure to register, failure to submit a notification, exceeding the permitted volume, and selling without excise clearance. The published materials do not provide an exact scale of fines in euros, but indicate that the new law specifically establishes such penalties.
Second, the violator may be charged unpaid excise tax on the entire volume of alcohol produced. Interest will also be charged on the amount of unpaid excise tax.
Third, the Customs Service will be able to seize illegally produced alcohol and decide whether to sell or destroy it. This measure will apply in cases where production is deemed illegal due to exceeding the limit, failure to report, or selling without registration.
Fourth, customs will be able to seal or confiscate equipment used for the production of strong alcoholic beverages. This measure applies if the distillation apparatus is unregistered or is used to produce more than the permitted volume and to sell without excise accounting.
For Montenegro, this issue has not only fiscal but also social significance. Home production of rakija is a widespread tradition in the country’s rural areas and throughout the Balkans. Therefore, the new rules may cause discontent among some households that are accustomed to producing the beverage for personal consumption without a complicated registration process.
The authorities, in turn, aim to make the market more transparent, curb the illegal sale of strong alcohol, and bring the excise system into line with European standards.
https://t.me/relocationrs/2919
The net inflow of foreign direct investment into Montenegro in the first quarter of 2026 amounted to EUR75.6 million, which is almost 40% less than the figure for the same period last year, when it reached EUR122.2 million, according to data from the Central Bank of Montenegro.
At the same time, the Telegram channel “Serbian Economist” reports that the total volume of foreign direct investment received by the country decreased only slightly — by 2.5%, to EUR206.5 million. The main pressure on the final indicator was exerted by the growth in capital outflow: foreign investors withdrew EUR130.9 million from Montenegro, compared with EUR89.5 million a year earlier.
Thus, the Central Bank’s data show not so much a sharp decline in interest in Montenegro on the part of foreign investors as an intensification of the reverse movement of capital. Money continues to flow into the country, but at the same time there is an increase in the divestment of companies, the repayment of loans previously provided to local firms, and the withdrawal of funds through the sale of real estate.
The largest volume of capital outflow in the first quarter accounted for investors from Turkey — EUR24.8 million. Of this amount, EUR21.1 million was related to the withdrawal of funds from companies in Montenegro, while another about EUR3 million was related to the sale of real estate.
Investors from Serbia were in second place, having withdrawn EUR17.5 million. EUR8.3 million accounted for the sale of real estate in Montenegro, EUR3.7 million for the purchase of real estate abroad, and another EUR3.2 million for the withdrawal of funds from companies. They were followed by investors from the UAE with EUR17 million.
The growth in capital outflow is especially important for Montenegro, since the country’s economy traditionally depends heavily on foreign investment, primarily in real estate, tourism, construction and related services. In recent years, investors from Turkey, Serbia, Russia, EU countries and the Middle East have played a noticeable role in the market.
The decline in net inflow may become a signal for the authorities of the need to assess the quality of investments more carefully. For the economy, it is important not only how much money is received, but also how much of it remains in the country, creates jobs, supports productivity and forms a long-term tax base.
According to Serbian Economist, foreign demand for real estate in Montenegro is becoming more diversified: citizens of Serbia and the U.S. are stepping up their activity, while the share of Russian buyers is gradually decreasing, as evidenced by market data and surveys of local experts.
Just a few years ago, Russian buyers were one of the key groups of foreign investors in Montenegrin real estate, especially along the coast—in Budva, Tivat, Kotor, Herceg Novi, and Bar. However, after 2022, their activity began to decline due to sanctions, issues with bank transfers, capital movement restrictions, uncertainty regarding residency status, and changes in the geopolitical landscape.
Against this backdrop, the importance of buyers from Serbia is growing. For Serbian citizens, Montenegro remains a familiar and accessible market: there is no language barrier, strong family and business ties, and the coast is traditionally viewed as a destination for vacationing, purchasing a second home, and renting. Serbian buyers are particularly active in the segment of apartments for seasonal living and properties that can be rented out to tourists.
American demand has also become more noticeable. Buyers from the U.S. are attracted by relatively lower prices compared to EU and Mediterranean markets, the possibility of obtaining a residence permit through real estate, the development of tourism infrastructure, and the growing recognition of Montenegro as a European destination for relocation, remote work, and investment.
According to market surveys, the most active foreign real estate buyers in Montenegro currently include citizens of Serbia, Turkey, the U.S., Russia, and Germany. However, activity among Russian and German buyers has declined significantly.
Ukrainian buyers also maintain a presence in the Montenegrin market, although their role is not dominant. For Ukrainian citizens, Montenegro remains a logical destination for relocation, purchasing a home for residence, seasonal vacations, and investments. According to market participants, Ukrainians are more likely to consider real estate in coastal cities and in Podgorica, focusing on both personal residence and the possibility of renting out the property. Market estimates indicate that in 2024–25, Ukrainian citizens accounted for approximately 10% of foreign real estate purchases in Montenegro.
Real estate prices in Montenegro continue to depend heavily on location. On average across the market, new residential real estate in 2026 is estimated at approximately 2,200 euros per square meter, but prices are significantly higher along the coast. In popular coastal cities, standard apartments typically sell in the range of €1,700–3,500 per square meter, while in more liquid and tourist-oriented locations, prices range from €3,000 to €5,000 per square meter.
In Tivat, especially near Porto Montenegro, apartment prices often range from €3,500 to €5,500 per square meter, and premium properties can cost even more. In Budva, new-build properties are typically priced at around 3,000–4,200 euros per square meter, while completed properties are priced at around 2,800–3,800 euros per square meter. In Kotor, prices for high-quality properties can approach €3,500–4,000 per square meter, and may be higher in certain coastal and historic locations.
Inland areas and parts of Podgorica remain more affordable than the coast. In the capital, the average price in recent years has approached 2,000 euros per square meter, while in less touristy cities and northern regions, properties can be found at significantly lower prices.
For local residents, the growth in foreign demand has a double-edged effect. On the one hand, it supports construction, employment, services, rentals, and tax revenues. On the other hand, it drives up housing prices, especially in coastal cities, where the purchasing power of the local population is significantly lower than that of foreign investors.
https://t.me/relocationrs/2905
According to Serbian Economist, tourist arrivals to Montenegro in the first quarter of 2026 fell by nearly 4% amid a sharp drop in the number of visitors from Turkey and a continuing decline in the Russian segment, according to the statistical office Monstat.
In January–March 2026, Montenegro welcomed 169,419 tourists, who accounted for 1.079 million overnight stays across all types of accommodation. Compared to the same period last year, the number of tourists decreased by 6,400, or 3.8%, and the number of overnight stays by 41,000, or 3.7%.
The main factor behind the decline was the Turkish market. According to Vijesti, in the first quarter, Turkish citizens accounted for 60,359 overnight stays, compared to 114,477 a year earlier. Thus, the figure fell by 54,000 overnight stays, or 47%. A particularly sharp decline was recorded in private accommodations: the number of overnight stays by Turkish citizens fell from 95,043 to 44,744.
Tour operators attribute the decline to events in late October 2025, when, following an incident in Podgorica involving foreign workers from Turkey and Azerbaijan, attacks occurred on the property and businesses of Turkish citizens. Following this, the Montenegrin government temporarily introduced a visa requirement for Turkish citizens. In December 2025, the visa-free regime was restored, but in a reduced format: the length of stay without a visa was reduced from 90 to 30 days.
The Russian segment also continued to shrink. In private accommodations alone, Russian citizens recorded 317,000 overnight stays in the first quarter of 2026, compared to 370,000 a year earlier. The decline amounted to 53,000 overnight stays, or 14%. Over the past two years, Russian tourist arrivals to Montenegro have already declined significantly: in 2023, tourists from Russia accounted for approximately 3.7 million overnight stays, while in 2025, the figure was approximately 2.4 million.
Part of the decline was offset by other markets, primarily Serbia. According to Vijesti, the number of overnight stays by visitors from Serbia in the first quarter increased by nearly 50,000 compared to the same period last year. The number of overnight stays by tourists from Albania, Germany, and Bosnia and Herzegovina also increased, but this was not enough to offset the decline in Turkish and Russian tourist flows.
Serbia remains one of Montenegro’s key tourist markets. According to the National Tourism Organization of Montenegro, in 2025, Serbian citizens accounted for 18.1% of foreign tourist arrivals, ranking first among external markets. In private accommodation, the share of Serbian tourists by overnight stays in 2025 was 25.6%, which also makes Serbia one of the main sources of demand for the Montenegrin tourism sector.
Ukrainian tourists also constitute a significant group of visitors to Montenegro, particularly in private accommodations. According to Monstat data for 2025, tourists from Ukraine accounted for 4.7% of overnight stays by foreign tourists in private accommodations, compared to Turkey’s share in this segment of 4.9%.
Official monthly statistics show that in March 2026, Montenegro’s collective accommodation facilities recorded 56,306 thousand arrivals and 123,913 thousand overnight stays. Foreigners accounted for 71.9% of all overnight stays, with the majority occurring at seaside resorts—72.4%.
Among foreign tourists in March, visitors from Serbia led the way with 5,980 thousand arrivals, followed by Albania, Germany, China, Turkey, Russia, and Ukraine.
https://t.me/relocationrs/2901
According to Serbian Economist, the event will take place at Porto Montenegro, and city authorities are already preparing temporary traffic restrictions, changes to access procedures, and enhanced security measures.
Montenegrin President Jakov Milatović and European Council President António Costa have sent joint invitations to the leaders of EU countries and Western Balkan states. The summit is set to bring together European leaders at a time when enlargement policy is once again high on the EU’s agenda.
The summit is expected to be attended by European Union member states and six Western Balkan countries: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia. These six economies are traditionally part of the EU-Western Balkans format, which is used to discuss the region’s European integration, reforms, security, infrastructure, energy, and economic convergence with the EU.
Earlier, local authorities reported the arrival of over 30 European delegations, though the final number may be higher when accounting for representatives of EU institutions, EU member states, countries in the region, and accompanying teams.
For Montenegro, hosting the summit is of particular significance. Milatović called it a historic moment, as the country is hosting such a major meeting between the European Union and the Western Balkans for the first time.
Tivat will operate under special arrangements in connection with the forum. On June 4–5, the city expects temporary traffic restrictions, heightened security measures, and changes to access in the Porto Montenegro area, where the summit will take place. Short-term road closures are possible, primarily on the route from Tivat Airport to the city center, as well as special traffic arrangements on Arsenalska and Istarska Streets.
Some parking lots will be temporarily closed, and Tivat Airport will adjust its operations to accommodate the international forum. Authorities are also considering changes to school schedules on June 4–5 and are preparing a cultural program for residents and visitors on the city waterfront on June 4.
The main political theme of the summit is the European perspective for the Western Balkans. Against the backdrop of the war in Ukraine, intensifying geopolitical competition, and the EU’s desire to accelerate expansion, the region has once again found itself in the spotlight in Brussels. Montenegro and Albania are considered the most advanced candidates for EU accession, while Serbia, Bosnia and Herzegovina, Kosovo, and North Macedonia face more complex political and institutional dynamics.
For the region’s economy, the summit is important not only as a political meeting. The focus is expected to be on infrastructure connectivity, access to European funds, energy security, a common regional market, transport corridors, and investments.
https://t.me/relocationrs/2850
According to Serbian Economist, Montenegro has significantly tightened payment rules for real estate transactions: deals worth more than EUR 10,000 must now be processed through the country’s banking system. The new requirements are aimed at strengthening control over the origin of funds, combating money laundering, and increasing transparency in the real estate market.
The law applies to real estate transactions worth more than EUR10,000.
The key requirement is that payment for the transaction must be made from or to a bank account opened in Montenegro. At least one of the parties to the transaction must have an account with a Montenegrin bank. This means that the buyer can transfer funds from a foreign bank directly to the seller’s account in Montenegro, provided the seller has such an account.
If payment was made before the contract was signed, the notary will have to request a bank statement confirming the transfer. A simple statement by the parties that the payment has already been made will not be sufficient. This strengthens the role of notaries and banks as participants in ensuring the integrity of the transaction.
In effect, Montenegro is closing the door on informal payments in the real estate market, which has actively attracted foreign buyers in recent years. Violations are subject to fines ranging from EUR 3,000 to EUR 20,000.
For foreign buyers, the new rules mean they must verify the banking aspects of the transaction in advance. If the seller is a resident of Montenegro and has a local bank account, the buyer will generally be able to pay for the property via a SWIFT transfer from their foreign account. However, in more complex cases—for example, if the seller is a non-resident, the transaction involves a legal entity, or the parties wish to manage payments through the buyer’s account—it may be necessary to open an account at a Montenegrin bank.
In such cases, banks may request documents regarding the source of funds: proof of income, sale of assets, investment documents, or other sources of capital. This aligns with the general logic of European financial compliance, although Montenegro is not yet an EU member.
For the Montenegrin real estate market, the effect will be twofold. On the one hand, the new rules may complicate and slow down transactions, especially for non-residents who are accustomed to more flexible payment schemes. On the other hand, increased transparency may strengthen the confidence of banks, notaries, and foreign investors in the market, particularly against the backdrop of expectations regarding Montenegro’s accession to the EU.
Montenegro remains one of the most popular real estate markets on the Adriatic for foreign buyers. Demand is driven by buyers from Europe, Turkey, Russia, Ukraine, Israel, and the Balkans.
https://t.me/relocationrs/2843
