On 31 May 2023, the Ministry of Interior unveiled a draft of the Amendments to the Foreigners’ Act (“Amendments”). The goal of the Amendments is to further align with EU legal acquis and aims to improve the processes related to temporary residence and work permits.
Work permits and their extension
Executive directors owning more than 51% of a company’s capital, entrepreneurs and seasonal workers are exempted from submitting proof of education and its and nostrification. One practical improvement: when submitting the work permit request, the foreigner can authorize the employer, other company, or individual to take over the work permit, by using the template provided by the Ministry of Interior.
Extension to the temporary residence and work permits of entrepreneurs and executive directors owning more than 51% of a company’s capital is granted if they can demonstrate to employ a minimum of three employees, with at least one employee being a Montenegrin citizen, all under full-time employment agreements.
If foreigner submitted proof of education, its and nostrification, and health certificate in the initial work permit application process, he is not obligated to resubmit these documents during the extension process.
One important change relates to the foreigners employed in a company governed by special laws where regulatory approval is needed to establish employment. In such cases, work permit can be extended for the duration of the regulatory approval, meaning even exceeding the standard three-year duration. This news is particularly important for top management in corporations operating in Montenegro, for example banks and other credit institutions.
Regulation for seconded foreign workers
Regardless of law which applies to the employment relationship, a foreign company seconding employees to Montenegro must adhere to Montenegro’s most significant labor regulations protecting the employees. This includes areas such as working hours, leave, salary, health and protection at work, discrimination, and pregnant women, women on maternity or parental leave, children, and youth.
Accountability of foreign companies
Foreign companies must designate a responsible person for keeping documents related to seconded foreign workers which include: employment agreement, salary calculation, proof of salary payment, working hours record, social security coverage proof during the secondment period, health and safety documents, and work permit.
Family reunification permit process simplified
One noteworthy amendment pertains to the exemption of foreigners who obtain the temporary residence permit as close family members of foreigners or Montenegrin citizens from the requirement of providing proof of sufficient funds for temporary residence approval.
Permanent residence
In addition to the general proof for gaining permanent residence (in Montenegrin: stalni boravak) (valid document, sufficient funds, health insurance, accommodation and Montenegrin language knowledge), the Amendments introduce obligation to prove that the foreigner settled taxes.
Inclusivity for same-sex partners
Individuals in same-sex partnerships are now able to obtain temporary residence permits, ensuring equal treatment and recognition of their relationships with married couples. However, this raises questions about the absence of non-marital unions as a basis for acquiring residence permits.
Real-estate residence permit
The Amendments add complexity to the process by introducing legal basis for the Government to adopt conditions to determine the value of real estate used as basis for obtaining residence permit. Additionally, foreigners seeking an extension for a real-estate residence permit must prove that related taxes are paid.
Digital Nomads’ Permit
Foreigners applying for temporary residence permits as digital nomads must now provide proof of registration of a foreign company.
Conclusion
A positive side of the Amendments is that they not only facilitate family reunification but align with modern partnership laws. However, rules such as the obligation of entrepreneurs and executive directors owning more than 51% of a company’s capital to prove that they employ a minimum of three full-time employees, with at least one employee being a Montenegrin citizen, could be perceived as potential business barrier. Additionally, the requirement for foreign companies seconding employees to maintain designated documentation adds a layer of administrative burden to their operations.
