July 25, 2020 - The purchase of apartments in a condo hotel or a hotel that is on a mixed business model, listed among development projects, is counted as an investment for which a Montenegrin passport can be obtained based on the Government's program of economic citizenship.
The information was confirmed to "Vijesti" by the Montenegrin Investment Promotion Agency (MIPA), which submitted information that the list of development projects in the field of tourism currently includes seven hotels given the green light for construction by the Government. Of these, four are based on the condo business principle, and three on the mixed business model.
According to the condo principle, four hotels will be built in Kolašin, namely "Kolašin Resort & Spa," "Breza," "Bjelasica 1450 Kolašin," and "K16." According to the mixed business model, "Boka Place" will be built in Tivat, "Kraljičina Plaža" in Miločer and "Durmitor Hotel and Villas" in Žabljak.
"Montenegrin citizenship can be acquired by investing in a development project in tourism, which includes the construction of a hotel / mixed complex, and thus the creation of a hotel according to the condo business model.
The applicant for citizenship individually decides on which of the tourism developments projects he will invest in," MIPA stated in an official communication.
According to the Tourism Act, the difference between a condo and a mixed hotel is that apartment owners in a condo-hotel must make them available to the hotel for ten months a year. In the combined business model, renting is voluntary.
The company "Adriatic Marinas" from Tivat has already offered real estate from the tourist complex "Boka Place," a new part of the luxury nautical-tourist resort Porto Montenegro. However, construction will begin only at the end of the year, as reported by world media.
According to the Government's decision, a Montenegrin passport can be obtained through investments in tourism projects, processing industry, and agriculture. So far, no plan has been reported for investment in the processing and agricultural sectors.
The three-year program for acquiring Montenegrin citizenship through investments started on January 1, 2019, and up to 2,000 passports can be awarded.
The MIPA explained that, according to the decision on acquiring economic citizenship (Article 11), the development project in tourism implies the construction of a hotel/mixed complex in the coastal region and Podgorica with a minimum of five stars, at least 60 accommodation units, a minimum investment of 15 million euros and minimum 80 new employees.
"For the northern and central region (except Podgorica) with a minimum of four stars, at least 35 accommodation units, a minimum investment of 5 million and a minimum of 25 new employees," the MIPA recalled.
The applicant can acquire citizenship if he has deposited 100,000 euros in an escrow account for the development of less developed municipalities, for the Law on Regional Development.
He may also acquire citizenship if he has paid at least EUR 450,000 into the account to invest in one of the development projects in Podgorica or the coastal region, or the amount of at least EUR 250,000 to invest in one of the development projects in the northern or central area of Montenegro.
A foreigner can apply for Montenegrin citizenship provided that they do not have a criminal conviction in Montenegro or any other country, and after an international eligibility assessment agent has given a positive opinion, including providing proof of origin of money intended for payment and investment following a Government decision.
The state has earned three million euros from the sale of passports within the economic citizenship project. In the budget, 15 million from the sale of passports were projected this year, and that budget item is zero after the rebalance.
The Agency could not say which investment the first passport was awarded within the project of economic citizenship.
"Issuance of the decision for admission and issuance of the passport upon admission to citizenship is the responsibility of the Ministry of Internal Affairs of Montenegro," the MIA replied.
As part of the economic citizenship project, the Ministry of the Interior issued 12 passports to foreign citizens, but their names remain undisclosed. In response to the question by "Vijesti" as to who had received citizenship, the department referred to the Law on Citizenship, which specifies to whom the Ministry of the Interior can provide information.
A Russian citizen obtained the first passport, officially confirmed by Henley & Partners, one of the three licensed agents for mediation in this project.
Deputy Prime Minister Milutin Simovic told parliament on Wednesday that he could not give names, citing the Law on Personal Data Protection. This was an assurance that had been given when the project was presented.
"These are families who have private business with proven credibility, proven origin of their investment money, and confirmation that they are not involved in activities related to terrorism," claims Simović.
Text by Marija Mirjačić
June 15, 2020 - State guarantees of up to at least 70% of the amount of the loan for legal entities which were forbidden to work in accordance with temporary measures for the suppression of coronavirus or which had their volume of activities significantly reduced, extension of moratorium, delay of the repayment of the due tax duties- are just some of the measures proposed by the Montenegrin Employers’ Union, as part of the third Government’s package of measures.
In order to help Montenegrin recovery to recover, Employers’ Union of Montenegro has prepared Innovated (third) proposal for measures to support economy.
ECB, IMF and EIB have officially announced increase in the funds aimed at helping WB countries, creating conditions for more favorable credit funds.
“In accordance with that, it is necessary to provide state guarantees of up to at least 70% of the amount of loan for legal entities which were forbidden to work in accordance with temporary measures for the suppression of coronavirus or which had their volume of activities significantly reduced, which would create conditions for the IMF and commercial banks to provide more favorable credit lines”, Union said.
They think that Government and Central Bank guarantees should be earmarked proportionally to the market share of every individual bank in Montenegro, provided that guarantees do not amount to more than 40% of the overall placement of the bank.
Montenegrin employers hold that it is necessary to carry out analysis of the situation and possible scenarios with the aim of earmarking support funds proportionally.
In addition, Investment and Development Fund and commercial banks should enable extension of moratorium on the repayment of loans for legal entities until their business operations are back to normality.
Montenegrin employers state that it is necessary to extend deadlines for the repayment of due tax liabilities on the grounds of all types of taxes with the possibility of repayment in 24 installments.
“Legal entities should be exempt from paying local public utility taxes, fees for use of the road as access to commercial facilities for 2020, paying real estate tax…”, employers say.
They add it is necessary to revise prices of public utility services depending on whether they worked during the epidemic or not.
They point out it is necessary to exempt legal entities from tourism and hospitality sector from paying fees for the use of temporary facilities in the coastal zone and national parks.
Montenegrin employers stress it is necessary to enable deferred payment of customs and VAT for 90 days and in cycles until economic and money flaws become smooth again.
Employers say that it is necessary to adopt special law to regulate work and legal relations in emergency circumstances, or introduce urgent amendments to the Law on Labor and harmonize its provisions with the emergency needs.
It is necessary to reconsider labor costs and reduce specific items related to the salary costs.
“Entrepreneurs and companies that were forbidden to perform their activities should be entitled to a subsidy in the amount of 100% of minimum net salary during six months and 50% of the minimum net salary for vulnerable sectors, as well as deferred payment of taxes and contributions for all those subjects”, Union says.
Montenegrin employers request introduction of lower VAT rate – 7% on the accommodation services and accommodation services with services of food and non-carbonated and non-alcoholic beverage in hotels and facilities with similar purpose; increase of the generated turnover as prerequisite for mandatory VAT registration from €18.000 to €30.000.
“Entrepreneurs and micro companies would feel most benefit from this increase. The day they enter VAT system, their goods and services are by 21% more expensive, they enter a very demanding and uncertain race with major legal companies and most of them soon become illiquid”, employers say.
Employers call on all competent authorities to commit fully to taking measures and activities to combat grey economy.
“The scale of this negative trend is at alarmingly high level, and according to the official data, this phenomenon is on an upward trajectory”, they warn.
In 2019, Tivat Airport achieved a new absolute record in the physical volume of traffic, as nearly 1.37 million passengers passed through the two terminals of the airport.
Last year, Tivat Airport had 1,367,282 passengers, which is a 9.7% increase compared to 2018 when there were a total of 1,245,999 passengers.
During 2019, 7,049 aircraft landed on the Tivat airport runway, which is 234 aircraft, or 3.4% more than in 2018.
Airport Tivat photo S.L
Last year, apart from the opening of the newly built temporary facility of Terminal 2, was marked by an additional increase in the number of lines that carriers enter from the Tivat airport during the summer season, so this airport was connected with about 50 destinations in Europe and the Middle East this summer.
Among the new carriers that have established traffic with Tivat, the most significant is the German national airline Lufthansa, which first appeared on the Montenegrin market, operating from this coastal city during the summer to Frankfurt and Munich.
The announcements of air carriers for this year signal an additional increase in the volume of physical traffic in Tivat airport as new companies wanting to fly to Tivat are announced to the management of the Airports of Montenegro, and the introduction of routes from that airport to some new destinations like Milan in northern Italy has been confirmed.
Text by S.L., on January 8th 2020, read more at Boka News
December 21, 2019 - The Gross domestic product (GDP) amounted to €1.63 million in the 3rd quarter of the year, according to preliminary data of MONSTAT. Head of this state body, Ms Gordana Radojević, noted that the GDP real growth rate amounted to 4.7 per cent in the 3rd quarter of 2019.
“In the absolute value, we have achieved an added value by more than €100 million compared to the same quarter last year. Positive movements in GDP in the third quarter are the result of increased production in almost all economic sectors,” Ms Radojevic told the press.
She added that the highest growth in the 3rd quarter was recorded in the construction sector.
“We’ve recorded a 31.4% growth by measuring the value of completed construction works.”
Enormous contribution to the GDP growth in the 3rd quarter has come from tourism, Ms Radojević concluded.
Text by CDM read more here.
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December 18, 2019 - Kotor mayor, Mr Željko Aprcović, director of the Direction for Organization and Construction of Kotor, Mr Zoran Mrdak, and executive director of the company Bigova Bay, Ms Branka Lazarević, met in Kotor to sign the agreement on the implementation of an investment – the construction of a high-end tourism complex in Bigova.
The agreement announces the beginning of the implementation of an investment whose initiation started 7 years ago.
“The local self-government is proud to have a renowned investor in this business who will invest large sums of money – over 300 million euro – and today is a big day for the Municipality of Kotor,” said the Mayor of Kotor.
The aim of this project is to obtain the new content that will raise the sites in Donji Grbalj to a higher level.
Mr Aprcović said: ”This investment will represent the initial impetus for future investors in this extremely attractive site.”
Kotor Municipal Assembly, at its session held on 18 Nov. 2019, passed the decision on resolving relations between the Municipality of Kotor and Bigova Bay and the agreement signed today represents an integral part of it.
Text by CDM, read more here.
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Works began on the construction of a roundabout at the former Tivat Municipality building, which was inaugurated by Prime Minister Dusko Markovic.
Due to the commencement of works, parts of Luka Tomanovic street and the Second Dalmatinska Brigade were closed to traffic, and the usual mode of movement of the vehicles through the center of Tivat was changed.
However, the citizens of Tivat have not been officially informed about this by the Municipality, which is the investor of the EUR 300,000 project, which allows for an entrance to the city center.
Text by S.Lukovic, on December 16th, 2019, read more at Boka News
The Ministry of Sustainable Development and Tourism (MORT) has issued the urban-technical conditions for the preparation of technical documentation relating to new facilities within the Kotor Port and the future Port Risan, whose construction is reportedly in line with state site studies (DSL) and the Special Purpose Spatial Plan (PPPN) for the coastal area of Montenegro.
According to the PPPN for the coastal area, within the concept of traffic development as ports of local importance are proclaimed ports in Budva, Risan and Zelenika, Porto Montenegro and Kalimanj in Tivat, the Nautical and Tourist Center Kotor, and the city port of Skver in Herceg Novi, and the proposed shipyard port in Bonici.
The ports of Bar, Kotor and Zelenika are classified as commercial, while the marinas are located in Bar, Budva, Risan, Porto Montenegro, Kalimanj, Skver and NTC Kotor.
Text by Dragan Popadic, on December 12th, 2019, read more at Radio Tivat