What Should You Know About ?

INVEST IN MONTENEGRO 2017 111 Frequently Asked Questions

MONTENEGRO IS THE NEXT NATO MEMBER What Should You Know About Montenegro?

INVEST IN MONTENEGRO 2017 111 Frequently Asked Questions

This publication is product of The Montenegrin Investment Promotion Agency (MIPA)

111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017

Dear Reader, We are pleased to offer you new, 2015. edition of “111 Frequently Asked Questions”. We hope it will contribute to your better understanding of the overall situation in Montenegro and help you in establishing your business.

On the 2nd of December of 2015, NATO Foreign Ministers agreed to invite Monte- negro to begin the process to become the twenty-ninth member of the NATO Alli- ance. Montenegro got independent in 2006, and this is the second most important day for Montenegro in recent history. Montenegro was the least developed country among 6 countries of the ex-Yugoslavia. Today, Montenegro is, by almost all of the economic parameters, most developed country in the whole region.

We share the vision of the NATO Secretary General Jens Stoltenberg: ‘‘NATO mem- bership made my own country safer, and it will make Montenegro safer too. It will be good for Montenegro, it will be good for Europe, and it will be good for the Al- liance.’’

Here we are answering 111 frequently asked questions about the investments op- portunities of Montenegro. You are welcomed to come to ask more questions. Mon- tenegrin Investment Promotion Agency (MIPA) is at your disposal for any question related to the foreign investments of Montenegro.

We believe it is important to get your attention to several general facts about Mon- tenegro: • Geographically strategic position of Montenegro in Europe • Montenegro is in process of negotiation for joining the European Union (EU) • Montenegro is in process for the full membership into NATO; • We treat foreigners and domestic ones equally with regard to investments; • For majority of the countries visas are not required; • The euro is official currency since 2001 • One of the most competitive corporate tax regimes in Europe

I would like to use this opportunity to invite you to come to Montenegro, and inves- tigate the investment potential of Montenegro. Our comparative advantages are in tourism, agriculture and renewable energy sector. In all three of them we have enor- mous potential.

Yours Sincerely,

Miloš Jovanović, MSc CEO Montenegrin Investment Promotion Agency (MIPA)

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What is MIPA? The Montenegrin Investment Promotion Agency (MIPA) is a national investment agency set up by the in 2005 to promote foreign invest- ments in Montenegro and to facilitate the economic development of Montenegro.

MIPA’s mission The mission of MIPA is to partner with foreign and domestic investors, the public and private sector, and international groups and individuals to increase investments in Montenegro and help bring accelerated economic development, dynamic growth and prosperity for all Montenegrin citizens. It promotes specific projects to foreign investors and has a publicity function in bringing such projects to the attention of the international public. MIPA advances Montenegro as a competitive investment desti- nation by actively facilitating investment projects in the country.

What can MIPA do for you? MIPA helps you find business opportunities in Montenegro by: • Being a business partner and actively facilitating your business needs; • Providing you with relevant information on the investment climate, institutional framework and related legal issues; • Assisting you in obtaining permits and licenses on national and local levels of authority; • Developing specific strategies for concrete sectors and countries; • Helping you locate greenfield and brownfield site options according to your specific requirements; • Giving initiatives and supporting cooperation with domestic supplier companies and other local partners; • Maintaining an investment opportunities database; • Identifying eventual “red tape” obstacles to doing business in Montenegro and providing recommendations to the Government for its systematic removal; • Advertising your project, with an aim to create a relationship between Monte- negrin companies and people and foreign investors.

How to Contact Us? Montenegrin Investment Promotion Agency (MIPA) Jovana Tomaševića 2A, 81000 , Montenegro

Tel/fax: (+38220)203-140, 203-141, 202-910, 202-911 Web: www.mipa.co.me E-mail: [email protected]

01. Where is Montenegro? Montenegro belongs to the middle Mediterranean region. It is located in Southeast

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Photo: Stefan L. Beyer; http://www.slb-photography.com/

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Europe, on the central part of the Balkan Peninsula and southern coast of the Adri- atic Sea.

Geographic coordinates of extreme points North latitude East latitude North 43o 32’ 18o 58’ South 42o 50’ 19o 22’ East 42o 53’ 20o 21’ West 42o 29’ 18o 26’

Montenegro is bordered by and on the west, on the northeast, and on the east and across the . The borders are 614 km in length with a coastline of 293,5 km, of which 73 km are sand beaches.

02. What is the total land area? Total land area of Montenegro is 13,812 km2. High and extensive mountain massifs intersected by river gorges and deep valleys cover most of the country. Larger lowland areas are to be found in the south, near the coastline.

General Data Area in km2 13.812 Total population 622,159 Capital Podgorica Old Royal Capital Currency EUR Climate Continental and Mountain Mediterranean Time zone CET (GMT + 01:00)

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03. What is the capital of Montenegro and what are other major cities? The capital of Montenegro is Podgorica. With a population of 185,937, it represents the political, economic, administrative and cultural heart of Montenegro. Major cities are: Niksic with a population of 72,824, which is located 54 km northwest of Podgori- ca, and with 46,676 inhabitants, located 120 km north of Podgorica.

04. What is the importance of the accession of Montenegro to NATO? One of the main foreign policy’s goals of Montenegro is a membership in the North Atlantic Treaty Organisation (NATO). Alliance membership is a long-term guarantee of sovereignty and territorial integrity of a country, safety of its citizens, and a pre- condition for successful economic growth and progress. The countries of the region share the belief that NATO is the best guarantee for long-term safety and stability in the Western Balkans. NATO membership is a matter of national interest and an answer to the question what strategic outlook should the country take to ensure that future generations will live in peace.

A formal invitation was issued by the alliance on 2 December 2015, beginning the final accession talks.

,,This is a crown jewel of the long-standing national efforts and comprehensive reform processes launched in 2006. Exactly nine years ago, Montenegro has embarked on this journey by joining the Partnership for Peace (PfP). Today, we are entitled to feel proud that we have in a relatively short time earned the trust of our partners and received a membership invitation.’’ Milo Djukanovic, PM of Montenegro

As a NATO member, Montenegro will much better valorize all its potential in a safe environment. Each investor will prefer to invest in a country that is safe, enjoys sta- bility and which is a member of the world recognized international organisation. It also applies to tourists. With membership in NATO, Montenegro will strengthen en- vironment for domestic and foreign investment and this environment would guaran- tee stability of investments.

New chances for Montenegrin economy NATO codification system came out of necessity of allies interoperability. The basic idea of codification is very simple, however, in the background lies a complex orga- nization led by the Committee AC / 135, a complex software system in the NSPA, the system of communication with the various commercial software 55 countries world- wide. Codification of Montenegrin products opens the possibility of using the advan- tages of a much larger market

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73 products are codified in Montenegro so far. These are the products of companies: , Plantation 13 July, Franca Mesopromet, Suza Water Group, Poliex, Martex, ag- ricultural producer Goran Mijušković, Water factory Lipovo, AD Bjelasica Rada. In addition to these companies, NCAGE (NATO COMMERCIAL AND GOVERNMENT EN- TITY CODE) received the company Adriatic Shipyard, Jugobicikl-traffic trade, Jadroa- gent Bar, Studio Mouse, MB Electronic, mill Niksic, Montenegro Defence Industry, Port of Bar, Port of , Travel agency, Mortgage Bank, Interprodukt, Matic MT. By receiving this code all the companies have entered into NATO master catalog, a da- tabase of companies and organizations 28 NATO countries and 38 countries that are not NATO members, and offering products and services of NATO member states.

New chances for tourism Montenegro, as a tourist, investment attractive country, with NATO membership ensures more favorable environment for investment (strengthening the rule of law is a guarantee to investors). Montenegro’s membership in NATO would have had and the importance of tourism, especially since, in addition to natural beauty, cultural-his- torical monuments, leisure and entertainment for tourists is general safety. The citi- zens of NATO countries are a great tourist, and travel consumers usually choose safe destinations.

05. Will the membership of Montenegro in NATO reduce the inflow of FDI from ? MIPA is firmly convinced that membership of Montenegro in NATO will not reduce the inflow of FDI from Russian Federation. Russian business is welcome in Montene- gro and our integration with NATO shouldn’t hurt Russian investment. As Nikolas Gvosdev, a prominent Russian-American international relations professor from the U.S. Naval War College in Newport, says: ,,Throughout eastern Europe, and even in central Europe, NATO membership has not served to mark a decrease in Russian in- vestment and activity particularly if local power structures are tied in with Russian firms and benefit from their presence. There is no indication that after joining NATO Montenegro would change its visa regime, or put limits on Russian property owner- ship, or proclaim that Russian investment was a national security risk.”

,,Russian investments in Montenegro will be safer after accession of Montenegro to NATO and I think that the Russians will then invest not less or equally as now, but also more. We were doing research that showed that after one year of membership, each country increased investment, and that includes an increase in Russian investments. Both the Russian and other investors consider their investment safer in NATO countries’’. Miloš Jovanović, CEO of MIPA

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06. What is the climate in Montenegro like? The climate is temperate Mediterranean. Continental climate is present in the north (cold winters and hot, humid summers, with well distributed rainfall); Central region is characterized by continental and Mediterranean climate; in the south prevails Adriatic climate, with hot, dry summers and autumns and relatively cold winters. Average air temperature is 27.4°C in the summer and 13.4°C in the winter. Montene- gro has around 250 sunny days a year.

07. What is the currency in Montenegro? Montenegro started to use Euro as a currency in 2002, without any objections from the European Central Bank (ECB). From 1996 up to 2002 Deutsche Mark was the currency used in all transactions.

08. What is the total population in Montenegro? Based on estimates of the population in 2014, Montenegro has 621.810 inhabitants.

09. What is the ethnic structure? Based on the 2011 census, the ethnic composition of Montenegro is as follows:

Source: MONSTAT (Census 2011) 10. What are the main religions? Montenegro is a multi-religious state with Christian Orthodox, Islamic, Roman, Cath- olic, Jewish, Protestant and other denominations.

11. What is the Human Development Index for Montenegro and the literacy rate? Human development Index is in constant increase since 2005 and reached 0.789 in 2013, while based on the last survey literacy rate is 98.5%.

12. What is the average life expectancy? 74.5 years. Man life expectancy is 72.4, while women life expectancy is 76.8 years.

13. What is the political and legal system in Montenegro? Montenegro is a civic, democratic and ecological country, it is the state of social jus-

10 111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017 tice based on the rule of law. Montenegro became an independent country on May 21th 2006. Members of the National Assembly (81) are elected directly. The Prime Minister is appointed by the members of the National Assembly. The legal system in Montenegro is Continental-European.

The According to the Constitution of Montenegro, its 81-member Parliament hold legis- lative power of the state. Representatives are elected through direct voting, by means of secret ballot, on the basis of a universal and equal right to vote. The Parliament has a President, one or more Vice Presidents, working bodies and commissions. The latest parliamentary elections were held in October 2016.

Current Political Structure of Montenegrin Parliament:

DPS Democratic Party of Socialists 36 SDP Socialist Democratic Party4 AC Albanian Coalition 1 DF Democratic Front18 Predstavnici Vlade - Representatives of Government Demokrate Democrats 8 SD Social democrats 2 SNP - URA - DEMOS 9 BP Bosniak Party 2 CCI Croatian Civin Initiative1

Source: The Parliament of Montenegro 14. Where does Montenegro stand regarding EU integration? Montenegro was granted an official candidate for accession to the European Union status in 2010, while the accession negotiations initiated on Juneth 29 2012. Accord- ing to the Progress Report 2015, the European Commission concluded that Monte- negro continues to sufficiently meet criteria. Regarding the political criteria, the Report reiterated the importance of new election legislation, stressing the need for its full implementation particularly when it comes to the electronic registration of voters. It has also commended Montenegro’s commitment to cherishing good neighbourly relations, as well as signing of the agreements on delimitation of borders with Koso- vo and Bosnia and Herzegovina.

Montenegro also made visible progress in the area of fight against corruption, and the Commission noted it expects further progress in issuing final verdicts and charges of high-level corruption having in mind their currently limited extent.

As regards economic criteria, the Report stated that Montenegro is partially ready for the functioning of market economy. It outlined the GDP growth, progress in fiscal consolidation and achievements made in improving the business environment, add- ing that the highway project could potentially jeopardize fiscal sustainability.

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The Report stressed that there has been no systematic trend of attacks against jour- nalists resulting in threats to life or serious injuries. However, threats and attacks have occurred in the past, including high profile incidents targeting investigative journalists, the report noted. When it comes to the recently held protests organised by the Democratic Front, the Report stated that all political actors should be engaged in an active dialogue within the Parliament of Montenegro.

The country also made progress in boosting cooperation between the Government and civil society, the Report underscored.

Hronology: On October 13th 2011 - European Commission called Montenegro to start negotia- tions for full membership status. In June 2012 - Montenegro opened accession negotiations with the EU. In June 2013 - The screening process is completed. In August 2013 - The Commission recommended the opening of Chapters 23 – Judi- ciary and Fundamental Rights and 24 – Justice, Freedom and Security. In September 2014 - twelve chapters, including chapters 23 and 24 have been opened. Two of those twelve chapters, i.e. science and research, and education and culture, have been provisionally closed. In March 2015 - two more chapters have been opened - chapter 16 on taxation and chapter 30 on external relations. In June 2015 – two chapters have been opened – chapter 9 on financial services and chapter 21 on Trans European Networks In December 2015 – two chapters have been opened – chapter 14 on Transport policy and chapter 15 on Energy In June 2016 – two chapters have been opened – chapter 12 on Food Safety, Veteri- nary & Phytosanitary Policy and chapter 13 on Fisheries In December 2016 – two chapters have been opened – chapter 11 on Agriculture and Rural Development and chapter 19 on Social Policy and Employment

15. When are next parliament elections scheduled? Next parliamentarian elections are scheduled for autumn 2020.

16. How to reach Montenegro by plane? There are two international airports: in Podgorica and in (80 km southwest of Podgorica). The offers connections to: Frankfurt, Vienna, Brussels, Rome, , , , Istanbul, and Zurich,while the is used mostly for charter flights and direct flights to Belgrade and Moscow. During the tourism season, additional connections are offered. The national air transporta- tion company is Montenegro Airlineshttp://www.montenegroairlines.com/ . Besides , Austrian, , AirSerbia, , Moscow Aircompany and are operating in Montenegro. Other, charter companies for air transportation are: SAS, Airberlin, GazpromAvia, , Malmö Aviation,

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Travel service, Belarusian Airlines, SkyEzpress, NordStar, Amaa, Khors Air, Holidays Czech Airlines, Tatarstan, Transaero, Windrose, , ALK, Thomas Cook, Donbass Aero, Ukrain International Airlines, NIKI, KMV, Rossiya and company. In 2013, - Europe’s only ultra-low cost carrier (ULCC) officially launched its first flights between Podgorica and Brussels. Starting from this April, Ryanair launched its route from London Stansted to Podgorica. Plans are to operate this route all year round, flying twice per week on Tuesdays and Saturdays.

17. What does the railroad network look like? The Montenegrin railway network is 330 km long, single track, electrified and with normal track gauge (of which 250km are the open tracks and 80 km are station tracks). The Rail- road links the Port of Bar, Podgorica and Bijelo Polje, as well as Niksic, Podgorica and Al- bania via . Podgorica-Niksic track as well as the link from Bar to Podgorica, are used for freight and passenger transport.

18. What is the total road network in Montenegro? The road network of Montenegro consists of approximately 920 km of main roads, 970 km of regional roads and a very extensive local network of 6,000 km. The road network was improved by important projects, such as the , the Millennium Bridge and the Debeli Brijeg border. The Sozina tunnel has significantly shortened the distance between the Port of Bar and Podgorica, which means that the capital of Montenegro is now only 40 minutes away from the seacoast.

19. What are the biggest infrastructure projects in Montenegro? The project for construction of a highway in Montenegro, with a cost of at least 2 billion Euros, will be made possible by a Chinese company and the funding by the Chinese EXIM Bank. This is the most important infrastructural project in Montenegrin history. On its session of 4 July 2013, the Montenegro Cabinet selected Chinese company - the CRBC International (China Road and Bridge Construction Company- as the best bidder for the construction of the highway’s priority section. Its construction will cost around EUR 809.6 million or $ 1.1 billion. The Exim Bank’s loan is to provide 85% or EUR 687 million of the total amount, whereas the remaining 15% (EUR 120 million) has to be provided by Mon- tenegro. The construction has officially started on May 11th in 2015. The highway section from Podgorica to Mateševo is 41 km long and will pose an enormous challenge for the project designers and be the most demanding part of the road for its constructors. It will require the construction of 11 tunnels (around 14 km) and 14 bridges and viaducts (around 4 km). Impressive construction achievements, such as Moračica bridge and Vjeternik tunnel, will be fine examples of modern infrastructure in the region and beyond. It will link the capital of a country and a major tourist destination with other regional capitals and economic centers, providing the infrastructure for fast, safe and reliable travel.

Adriatic Ionian Motorway or the Blue Corridor is a future motorway that will stretch along the entire eastern shore of Adriatic and Ionian sea, connecting the western coast

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of the Balkan peninsula. The total length of the Adriatic Ionian Motorway will be about 95 km long. This motorway, as stated by the Ministry of Transport and Maritime Affairs, will be the shortest route connecting Western Europe with the South, and will connect Montenegro with Albania, Bosnia and Herzegovina and Croatia.

20. What are the possibilities for sea transportation from and to Montenegro? There are five ports for passengers and cargo . They are located in Bar, , Tivat, Kotor and Zelenika. Located in the , a UNESCO World Heritage site and Europe’s most southerly fjord, Porto Montenegro combines a spectacular destination with a world-class marina and services. Comple- mented by spacious waterside residences, signature restaurants, lively bars and a wide range of sports, leisure and cultural activities, the marina is an ideal superyacht homeport with berths ranging from 12m to 180m. The Port of Bar is used for 95% of the total passenger and freight transport, and has conditions for an annual turnover and transport of 5 million tons of cargo. It is situated in the southern part of the Adriatic Sea, and it is an exceptional site where sea and land traffic come together. This favorable georaphical position (42o 0’ north latitude and 19o 05’ east longitude), together with the railwayline Belgrade – Bar and the road network, represents a compatible traffic system that enables convenient connection. Due to its favorable position, the Port of Bar is the right place for setting up a distribution centre for the whole region. Significant investments are expected in order to improve productivity and efficiency of the logistic services in the Port.

21. What does the telephone infrastructure look like? The telecommunication sector is 100% private and liberalized. There are two fixed phone providers – T-Mobile, part of Deutsche-Telecom (98.35% market share in Oc- tober 2014) and M:tel, (Consortium consisting of Telekom Serbia and Ogalar B.V. - 1.65% market share in September 2014). Montenegrin fixed connection, according the level of digitalization, is one of the most developed in comparison to other EU countries. This is because of the fact that fixed connections digitalization reached 100% starting from 2006. There are two international switches that have been work- ing as transit switches. These are used for transition of traffic from the local switches that are placed in other Montenegrin municipalities. Complete communication be- tween switching capacities is organized by using solely fiber-optic cable that guaran- tees high quality communication.

22. What is the number and coverage of GSM operators? There are three mobile operators in Montenegro: Telenor (www.telenor.me), 100% owned by Telenor from Norway, T-Mobile Montenegro(www.telekom.me), majori- ty-owned by Magyar and Deutsche –Telecom and M:tel (www.mtel.me) consortium of Telekom Serbia and Ogalar B.V. . In Septembar 2014 Telenor had 425.733 users (38,19), T-mobile had 367.524 users (32,96%) and M:tel 321.704 (28,85%). The num-

14 111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017 ber of mobile phone users in same period equaled 1.114.961 which implies the penetration at the level of 179,82%. Source: Agency for Electronic communications and postal services, Montenegro 23. What is the Internet availability and the percentage of Internet users? There are numerous licensed Internet Service Providers in Montenegro but five of them cover the largest market share: T-Com Montenegro, Telenor, M-tel, M-kabl and Cabling. The percentage of households that own a computer increased from 47% in 2007 to 79% in 2014. Percentage of households that have access to internet is 59%. Increasing presence of IT companies characterize business sector in the recent period.

24. How many banks are currently present in the Montenegrin market? There are fifteen banks operating in Montenegro, and all of them are in private own- ership: Montenegrin Commercial Bank, Podgoricka Bank Societe Generale, Erste Bank, Atlasmont Bank, NLB Montenegro Bank, Commercial Bank , Invest Bank Mon- tenegro, Prva Banka, Hypo-Alpe-Adria Bank, Opportunity Bank, Universal Capital Bank, Ziraat Bank, Zapad Bank, Lovcen bank and Azmont bank. Source: The Central Bank of Montenegro 25. How many stock exchanges operate on the capital market? Until recently Montenegro had two stock exchanges. After successful merger, one stock exchange operates on the capital market (under the name of Montenegro Stock Exchange). In December 2013, Istanbul Stock Exchange purchased 24.38% of Mon- tenegro Stock Exchange (www.montenegroberza.com).

26. Which securities are traded on the montenegrin capital market? Three types of securities are traded: shares of companies, shares of investment funds and bonds (old currency savings bonds, Pension fund bonds and bonds from restitu- tion).

27. Which are the most tradeable shares today in Montenegro? (Securities with the largest turnover- The first half)

Turnover Company Number of transactions (EUR) Crnogorski Telekom AD Podgorica 2,861,824 287 Crnogorski elektroprenosni sistem AD 1,285,617 370 Hipotekarna banka AD Podgorica 794,070 8 13 jul – Plantaže AD Podgorica 623,017 128 HTP Ulcinjska rivijera AD 564,746 200

Source: Montenegro Stock Exchange

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28. How many broker and dealer houses exist in Montenegro? Montenegro stock exchange is organized on the principle of member firms, which trade in their own name and for their own account (dealers) in the name and for the account of their clients (brokers). Member of Montenegro stock exchange can be a legal entity registered as a broker under the Law on Securities and meets the condi- tions laid down by the Statute of the Stock Exchange. In addition, Members may include banks and insurance companies, once approved by the Commission for Securities to perform stock exchange trade. Membership on the Montenegro stock exchange currently has 11 stock brokers: BB Bull & Bear broker, dealer, inv. Adviser, CG Bro- ker-Dealer AD Podgorica, Erste Bank, Global broker-dealer AD Podgorica, Hipotekarna Bank AD Podgorica, Invest banka Montenegro, Universal Capital Bank, Market Broker AD Bijelo Polje, NK broker AD Niksic, PG Podgorica broker - dealer AD Podgorica, VIP broker-dealer AD Podgorica.

29. How can someone get the information about the securities that someone owns? The Central Depository Agency (CDA) executes the deposit of dematerialized securi- ties, clearing and settling securities transactions, and other business associated with dematerialized securities (www.cda.me).

30. Who can be a foreign investor? According to Montenegrin Law, following persons or entities can obtain status of foreign investor: foreign legal or natural person, companies with at least 10% of for- eign capital in its equity structure, company that was established by a foreign person on the territory of Montenegro and Montenegrin citizen residing abroad. Foreign person is also considered to be a person who obtained Montenegrin citizenship, on the basis of efectuated investments and in accordance with the Law.

31. What are the possible forms of foreign investment? Foreign investment can take the form of money, securities, properties, services and assets rights. Foreign and domestic investment are treated in the same manner. Foreign investor in Montenegro may:

• establish an enterprise (alone or jointly with other investors); • establish a foreign entity affiliate; • acquire interest and shares in the legal entity; • purchase an enterprise.

32. Can a foreign company own the land permanently? Foreigners in Montenegro have the right to purchase real estate under the conditions fulfilled by domestic entities and by presenting an identification document. However, according to the Law on Property Relations, a foreigner can not own natural resourc-

16 111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017 es, public goods, agricultural land, forests and forest land, cultural monuments of great and special importance, real estate in a land-border area up to a depth of one kilometre and islands, real estate located in an area which was declared by law an area in which foreigners can not have right of ownership in view of protecting the interests and security of the country.

Exceptionally, foreigners may also acquire the right of ownership on agricultural land, forests and forest land having a surface area of up to 5,000 m2, only if a residential building located on that land is subject to the contract of divestiture (sale, gift, -ex change, etc.).

Foreigners may be entitled to a long-term lease, concession, BOT and other arrange- ments of public-private partnership, over the above mentioned real estate. By means of legal transactions, foreigners may transfer the right of ownership to domestic persons, as well as to foreign persons that may acquire the right of ownership.

33. Can foreign investors acquire rights to real estate in Montenegro? Foreign investors can acquire rights to real estate in Montenegro, such as company facilities, apartments, living spaces and land for construction. Additionally, foreign persons can claim property rights to real estate by inheritance in the same manner as a domestic citizen. Foreigners Law of Montenegro provides an opportunity for foreigners who own real estate in Montenegro to obtain a residence permit on this basis for the period of one year with subsequent extension.

34. How does the law categorize land in Montenegro? The law classifies all land into two categories:

• Construction land • Public construction land (in state municipality ownership); • Other construction land (in all ownership forms).

• Agricultural land (in all ownership forms) • Cultivable land • Uncultivable land.

• Forest land • Other land (rocky terrain, etc.)

35. Who is the owner of urban construction land? Most of the urban construction land is the property of Montenegro, but the percent- age of privately owned land is increasing year by year.There are no restrictions to ownership of urban construction land. The municipalities/local authorities are also owners of construction land.

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36. How can one obtain right of use? The right of use of construction land can be obtained by signing of a Transfer Contract between the municipality, legal entity or other organization or individual, for a term of 30 days from the date of the decision to transfer or by renting urban construction land for a definite period of time.

37. What are the implications and characteristics of right of use? Each municipality regulates the procedures, conditions, and ways of renouncing urban construction land. The right of use of the urban construction land has the following characteristics:

• It relates to ownership of the constructed building; • It is granted for a definite period of time or can be PPP • It is not transferable as such but is automatically transferred by thesale of a constructed building.

38. What fees does an investor pay for the right of use of land? There are three fees that apply to the right of use of land:

• Fee for obtaining the building site (one time payment); • Construction land development fee (one time payment); • Monthly fee for using the land.

39. How can one obtain construction approval/building permit? In order to obtain a building permit investor is required to fulfill requirements pre- scribed by law. The first requirement following an idea of construction is one of planning documents. There are state and local planning documents.

State planning documents are following: Spatial plan of Montenegro, Spatial plan of special purpose area (national parks, coastal zone, natural reserves, recreational and tourist areas, monumental sites, exploitation sites where superficial exploitation of mineral raw materials is carried out, etc.), Detailed spatial plan and State study of location.

Local planning documents are following: Spatial-urban plan, Detailed-urban plan, Urban project and Local study of location. Local administration body issues a building permit for an object constructed according to a local planning document.

State administration body, namely the Ministry, issues a building permit for objects constructed according to a state planning document, as well as for: state-owned structures of general interest; structures of basic chemical and chemical industry; ferrous and non-ferrous metallurgy; structures for production of cellulose and paper; structures for processing of leather and fur; structures where hazardous matters are

18 111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017 produced and stored and similar structures and plants whose work might endanger the environment; plants using liquid and oil gas; high dams and reservoirs filled with water, tailing dump or ash which is subject to technical monitoring; structures of special significance for defence of Montenegro; hotels, religious structures, theatre, cinema, sports, exhibition and similar halls, with over 1,000m2; silos with the capac- ity over 3,000 m3; halls with a bay over 30m, of shell structure, of pre-stressed and composite structure and beehive structure; bridges with a span over 30m; sanitary landfills and plants for treatment of solid and hazardous waste; systems and structures built at the territory of two or more local self-government units; concessions causing spatial alterations; stations and plants for storing and decanting of fuel; stadiums with the capacity for over 3,000 visitors; tunnels over 200m in length.

Building permit is issued by conclusion (the procedure is same for domestic and foreign companies). After receipt of preliminary or building design with positive report on expert supervision and a proof on ownership or other right on the construction land by the investor, respective authority issues a building permit. For a constructed object, the same body that issued a building permit issues occupancy permit as well, after receipt of the positive report on technical inspection of all construction works. Detailed information can be found on the website of the Ministry of Sustainable Development and Tourism of Montenegro (www.mrt.gov.me).

40. Can a foreign investor perform free transfer of goods from Montenegro and under what conditions? Foreign investors can freely transfer their funds after fulfilling all liabilities and obli- gations such as: income tax, return of funds invested in initial capital, share in net assets, obligations in the case of contract ending, etc. Transfer of funds is also possi- ble in the cases of foreign currency being sold off to a registered bank, the selling of goods and services, or transfer to an account of another foreign person.

41. Can foreign investors be taxed differently than domestic investors? No. Foreign investors cannot be taxed differently than domestic investors. A foreign investor has all the rights and obligations as domestic investor.

42. Is the foreign investor obligated to ensure his/her investment? The foreign investor is obligated to ensure the investment according to insurance regulations.

43. Who can insure your investment in Montenegro? There are various foreign companies along with other bilateral and multilateral or- ganizations providing risk insurance against civil war, expropriation, nationalization, confiscation, inconvertibility of profits and dividends, and non-transferable currency.

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Investment insurance organizations OEKB www.oekb.at French COFACE www.coface.com Italy SACE www.sace.it SID www.sid.si USA OPIC www.opic.gov World Bank MIGA www.miga.org

44. How many insurance companies operate in Montenegro? Eleven insurance companies operate in Montenegro. Six of them are offering non-life insurance (Lovcen insurance,SAVA Montenegro, Swiss insuirance, Delta Generali in- surance, Uniqa insurance), while five companies are offering life insurance (Atlas life, Wiener Stӓdtische life insurance, Grawe, Uniqa life insurance, Lovcen life insurance and Merkur insurance).

45. How many legal holidays for local people in a year? Overview of legal holidays in 2016 is presented below:

Working/ Date Holiday Non-working 1st and 2nd of January New Year Non-working 6th, 7th, 8th of January Christmas Eve and Christmas (for Orthodox) Non-working 25th, 26th, 27th i 28th of March Good Friday and Easter (for Catholics) Non-working 23rd and 24th of April Pesach (for the Jewish community) Non-working 29th, 30th of April, 1st and 2nd Good Friday and Easter (for Orthodox) Non-working of May 1st, 2nd and 3rd of May Labour Day Non-working 21st, 22nd and 23rd of May Independence Day Non-working 5th, 6th and 7th of July Ramadan Bairam (for Muslims) Non-working 13th and 14th of July National day Non-working 12th, 13th and 14th of Kurban Bairam (for Muslims) Non-working September 12th and 13th of October Yom Kippur (for Jewish community) Non-working 1st of November All Saints’ Day (for Catholics) Non-working 24th, 25th and 26th of Christmas Eve and Christmas (for Catholics) Non-working December

46. Montenegro’s labor union and its function? There are two existing labor unions: Association of Trade Unions of Montenegro and

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Union of Free Trade Union. These two organizations promote the principles of social justice, the rule of law and democracy, respecting international standards, insisting on the ratification and implementation of conventions of the International Labour Organization (ILO) and the European Social Charter, as well as respected human and social rights.

47. Can the assets of a foreign investor be taken away? The assets of a foreign person cannot be taken away unless the law provides proof that this is in the public interest. In such a case, the investor is given a settlement fee or compensation, which cannot be less than the market value of the acquired asset. Foreign investors has the same economic rights as domestic ones.

48. Does a foreign investor have the right to claim damages? Foreign investors do have the right to claim any damages that have been made by non-legal means or by incorrect performance of responsibilities by state representa- tives of governmental bodies, in accordance with the law.

49. What is the amount of FDI recorded in the past few years? Montenegro is strongly committed to maintenance of growing trend of growing in- vestment and this dedication implies fewer mistakes and compromises, faster decision making and of course reduction of bureaucracy. FDI are increasing due to: unique investment opportunities; positive experience of existing investors; good financial sector as a base; the quality of service MIPA provides. The total net amount of direct foreign investments in 2015 was 619 million € and is 266 million more against 2014. By this indicator, Montenegro is still far ahead of other countries in the region. In the first nine months of 2016, the total net amount of direct foreign investments was 281 million € which is 243 million less against the same period of 2015, mostly due to a large outflow recorded in 2016, as a result of the payment of dividends in the amount of 200 million by the Telenor company.

Total FDI inflow 2006-2016

Source: MIPA

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50. Where are foreign investors coming from? Foreign investors are coming from more than 107 countries. Major investors (based on the value invested) are coming from Russia, Italy, Austria, Switzerland, Cyprus, , Serbia, Slovenia, etc.

51. What is total and GDP per capita?

In 2015, Montenegro has GDP growth of 3.5%, while GDP in real prices according to dates from June is 3,580 million €.1 GDP per capita was calculated according to esti- mates of the population in 2014, when Montenegro had 621.810 inhabitants (Source: Statistical Office of Montenegro (MONSTAT)).

2016 2010 2011 2012 2013 2014 2015 (QII) GDP in current prices 3,103,855 3,234,060 3,148,857 3,311,000 3,516,000 3,580,000 871 (mil€) GDP per capita in current 5,006 5,211 5,074 5,356 5,671 5,757 prices (EUR) Real GDP growth 2.5 % 3.2% -2.5% 2,5% 3.5% 3.5% 2,7

Source: MONSTAT 52. What is the annual inflation rate in Montenegro? In Montenegro in 2015 was negative inflation rate of 1.9, while in second quarter of 2016 inflation was -1,0%.

Source: MONSTAT

1 Source: Estimates Ministry of finance

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53. Who are the major investors in the sector of tourism so far? Porto Montenegro A group of investors, headed by Mr. Peter Munk, the Canadian billionaire, recognized a few years ago that the potential of Montenegro’s nautical tourism had dimensions large enough not only to satisfy regional yacht owners, but also worldwide owners. Today, at the heart of the Boka Bay, Porto Montenegro, a luxurious marina for mega yachts, attracts a tremendous number of tourists. There has been estimated that, during the summer months, approximately 6000 people visit Porto Montenegro per day. In the year to come, the number of berths will increase from 248 to 432. A nau- tical resort with 125 luxury residences and complete entertainment repertoire will be significantly expended. The construction of sixth residential and commercial building has begun, along with construction of five-star “Regent Porto Montenegro Hotel & Residence”, that will provide a five-star service including, apart from a range of dining and entertaining options, cigar lounge, library bar, two swimming pools etc. Porto Montenegro is already known for its shopping area and a variety of restaurants and cafes. All-year-round tourist and entertainment offer is an imperative and a strategic goal when it comes to development of Porto Montenegro nautical and residential luxury complex.

Orascom - Lustica Development During the fourth quarter of 2009, Orascom Development Group entered into an agreement with the Government of Montenegro to develop an integrated destination on the Mediterranean Traste Bay. The total land bank for the project amounts to 6.8 million m² in Lustica, in the municipality of Tivat.

The integrated project is planned to offer 2,080 residential units, seven hotels with a total capacity of 1,370 rooms, 2 world-class marinas on the Adriatic Sea with 170 berths, an 18-hole golf course, a Thalasso Centre, commercial facilities, a town cen- ter, and basic infrastructure requirements. The project will be the first certified eco-labeled development in Montenegro. It is expected that the value of this invest- ment will be around 1.1 billion euros.

Aman Resorts One of the best-known hotel managing brands in the world, Aman Resorts, has been successfully operating in Montenegro for the past few years in the most exclusive location in the country. This company with has been managing Sveti Stefan and Mi- locer with huge success, representing one of the most exclusive vacation places in Europe. With two kilometers of beaches and a peninsula covering 12,000 m², Aman Resort of Sveti Stefan is by far one of the top places in the world. National Geograph- ic has declared this resort among the top 50 places in the world, and with Aman Resorts being the main brand of the peninsula, there is no doubt that luxury and exclusivity are the main virtues of the resort. Sveti Stefan has been known for years as a gateway for world-renowned celebrities, where they were able to soak up one of the best views in the world with the total privacy that the place provides for them.

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Since 2008, Adriatic Properties, a subsidiary of Greece’s Restis group, has invested around €52 million in Aman Sveti Stefan. After years of restoration, the reconstruction of 15th century fishing village has been completed, creating one of the most exclusive addresses in Montenegro. The most famous tourist guide in the world ‘’ Lonely Plan- et’’ ranked Sveti Stefan among top 10 destination of the world’s most glamorous destinations in 2013.

Qatari Diar One of the largest real estate companies in the world, Qatari Diar has started to develop a luxury project in Montenegro. The company acquired the rights to the Blue Horizon hotel complex for €24 million, and it is in their plan to develop a five-star luxury hotel, that will include sports resorts and villas. Set up in Plavi Horizonti, on the Lustica Peninsula, this project represents one of the most exclusive projects in the whole of Europe, considering the green surroundings on one side and clear blue water on the other side of the project. Considering the fact that the company Qatari Diar is known worldwide for its high-luxury projects, there is no doubt that the proj- ect in Plavi Horizonti will live up to the company’s reputation. Following projects from Seychelles all the way to Cuba and Tajikistan, company Qatari Diar recognized Mon- tenegrin potential and decided that their next project should be right on the Monte- negrin coast of the Adriatic Sea. Investment will amount 250 million.

Azmont Kumbor By signing the Contract on the lease of the land of former military facility in Kumbor, Montenegro enabled the State Oil Company of Azerbaijan Republic – SOCAR to gain full ownership over the range of facilities that will be built in a period of lease duration. The resort with the area of 25 hectares will be located on the shore of the Bay of Kotor, on the site of the old barracks in Kumbor town. Once complete, Portonovi will include the One&Only Portonovi, a destination wellness spa, a marina catering to super yachts, a luxury beach club, the Portonovi Arena, Conference Centre and a tennis academy. Visitors will be able to explore waterfront shops, cafes and restau- rants, botanical gardens with biodiversity and eco-park, as well as a fish market and organic food market. Initially, a €250 million investment was planned. However, later a decision was made to increase the amount of investment up to €500 million. The new facility will include a network of One&Only resorts, focused on the exclusive clients. The investment will be the biggest in this area of business in SEE.

54. What is the international credit rating of Montenegro? Credit rating agency „Standard and Poor’s“ (S&P) confirmed last year’s score of B+/B, which indicates that further trends of its credit rating is based on stable positions. The stable outlook of Montenegro reflects view of Montenegro’s balanced risks between sound growth potential and a deteriorating path of fiscal metrics, which are expected to remain unchanged over the next 12 months. It also reflects that there are no expec- tations regarding results of fiscal metrics from the Bar-Boljare highway construction project to deteriorate beyond estimated predictions, thanks to fiscal consolidation efforts.

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55. Overview of the main macroeconomic indicators in Montenegro 2016 2009 2010 2011 2012 2013 2014 2015 (QI) GDP in current prices 2,980,967 3,125,100 3,264,000 3,181,000 3,362,500 3.457.900 3.595.000 696 - (mil€)2 1GDP per capita in current prices (€) 4,720 5,006 5,130 5,316 5,432 5,568 5,757 Real GDP growth in % - 5.7 2.5 3.2 -2.7 6.0 1.8 3,2 1,1 Industrial production growth rate (%) ø2000 -32.2 17.5 -6.9 -9.1 10,6 -15.5 7.9 Manufacturing industry (growth rate -38.6 -0.3 8.3 59.6 -5 0.4 20.1 5,2 in %) Production of electricity, gas, water -2.4 51.1 -27.50 35.2 38,7 -24.9 -18,9 growth rate Stone and coal excavation (growth rate -65.5 58.7 12.7 5.2 -1,4 6.6 -43,9 in %) Inflation-CPI (%) 1,5 0.70 3.5 5,1 0,3 -0,3 1.5 -0,9

Number of tourists 1,207,700 1,263,000 1.357,085 1,423,719 1,492,006 1,470.000 1,400,000 71.147 Total income from 750.00 tourism (in mil.€) 597.00 635.00 721.00 800.00 (I-IX) Employed 174,152 161,742 167,955 166,531 171,474 172.306 180.084 172,098

Unemployed rate (in %) 19.1 19.8 19.7 13.46 14,2 18.6 17.7 18,28

Unemployed 50,400 51,300 48.100 49.400 48.900 47.500. 48.600 42.406

Average wage (in €) 463 479 485 487 478 478 481 490 Budget deficit/surplus (in mil.€) - 132.1 - 84.6 -81.55 -104,66 -128,3 -103.4 -235,8 -68,6 Budget deficit/surplus as % GDP -4.4 -2.8 -2.49 -4,9 -3.9 -3.0 1,8 Total deposit (mil €) 1.824,70 1.789,90 1.868,0 1,981 2,097,7 2.268.0 2.625,0 2,610,4 Household deposit (mil €) 843,907 952,226.8 1,034,9 1,147,1 1,237,5 1.300.0 1439,8 1440,8 Deposits by corporate sector(mil €) 603.246 501.930 499.2 588,1 615, 7 633.4 784,4 810,8 Total loans(mil €) 2.248,824 2.085,442 1,957,3 1,862,6 2,411 2.443.3 2.385.6 2,374,6 Loans disbursed to households (mil €) 919,313 863,600 843,9 809,2 881.3 892.7 921.4 935,3 Loans disbursed to corporate sector (mil€) 1.315,067 1.161,113 985,8 846,3 896,5 900.9 936,1 939,5 Annual lending interests rate 9.36% 9.53% 9.73% 9,17% 9,39% 10.4% 11.1% Export of good and service (mil €) 277 330 454 366 375 333 245 (I-IX) 57,4 Import of goods and service (mil €) 1,654 1,657 1,823 1,820 1,773 1,784 1,533 363,5 Trade balance (mil €) -1,377 -1,326 - 1,368 -1,453 -1 397 -1.451 -1.288

Current account 3 -267.6 balance (mil €) -799 -499 -374.7 -326,7 -486.6 FDI (mil €) 1,223 652,8 494,7 633,6 479 498 526 (I-IX) 223,2 Grey economy (in % of GDP) 9.6% 2.6% n/a n/a n/a n/a n/a n/a Poverty rate (in %) 6.8% 6.6% 9,3% 11.3% 8.6% n/a n/a n/a Number of active companies 19,278 19,410 52,247 42.483 50.123 Number of active entrepreneurs 4,500 4,990 51,824 17.021 13.456 Source: MIPA

2 Ministry of Finance www.mf.gov.me, Statistical Bureau (MONSTAT), www.monstat.org , The Central Bank of Montenegro (CBCG) www.cbcg.me , Institute for Strategic Studies and Prognoses(ISSP) www.isspm.org, International Monetary Fund www.imf.org 3 The central Bank of Montenegro, www.cbcg.me

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56. Is it complicated to register your business? The process of establishing a limited liability company (LLC) is defined in the Law on Business Organisations.

When registering an LLC, it is necessary to download and submit the following to the Central Registry of Business Entities: • Step 1. Develop Articles of Incorporation of the company, download an example of articles of incorporation for a single-member company (if the company is founded by one founder); • Step 1.1. Download an example of Articles of Incorporation for a multi-member company (if the company is established by several founders); • Step 2. Draw up a Decisionon the establishment of the company (if the company is established by one founder), download an example of the Decision on the Establishment; • Step 2.1. Develop an incorporation agreement (if the company is established by several founders), download an example of the incorporation agreement; • Step 3. Pay 00 euro into the account of the Tax Administration, account number: 832-3161-26, payment purpose: registration of LLC. Payment slip example on the website of CRBE; • Step 4. Pay 00 euro into the account of the Official Gazette of MNE, account number: 520-941100-57, payment purpose: registration of LLC. Payment slip example on the website of CRBE; • Step 5. Certify the decision/agreement in 2 copies at the court, or by a notary; • Step 6. Extract from the Central Depository Agency. When taking over the extract, it is needed to submit a copy of the identity card of the founder or a certified copy of the passport if the founder is a foreigner and a payment slip in the amount of €2.93 paid to the bank account of CDA: 510-8092-14, payment purpose: extract fee. Payment slip example on the website of CRBE; • Step 7. A copy of the identity card (if the founder is a Montenegrin national) or a certified copy of passport (if the founder is a foreign national). Certify at the court or by a notary; • Step 8. Fill in the application of the company to start registration, download the registration form – PS 01; Tariff number – if the company wants to import and export products, when filling in the PS-01 form, it is necessary to mark the column numbered 15.4. Customs Register on the back page, in order for the company to be registered at the Customs Administration, on the occasion of which a tariff number is received; • Step 9.0. If the company wants to apply for registration of taxpayers for value added tax (VAT), the PR VAT – 1 form will be filled in and submitted together with other documents required for setting up a businesses; • Step 9.1. If the company wants to apply for registration into the register of excise duty payers, the AKC – P form will be filled in and submitted together with other documents required for setting up a businesses; • Step 10: Submit the collected and certified documents (Articles of Incorporation, certified decisions/agreements in 2 copies, CDA’s decision, copy of the ID or

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certified passport in 2 copies, payment slips and the application for registration, form pr pdv-1/akc-p) to the Central Registry of Tax Administration, Marka Mil- janova 54, 81000 Podgorica, Tel: +382 (0) 20 230 858, e-mail: [email protected], working hours 08:30 – 12:00; • When submitting documents, a certificate will be issued including the number of the decision, to be presented together with an identification document on the occasion of collecting the certificate of registration, seven days from the date of filing the application.

57. How long does it take to register a business? It takes an average of 7 to 8 working days.

58. What is the minimum financial requirement for a Limited Liability Company (LLC)? 1 Euro.

59. Which institution is in charge of business registration? The Central Register of the Commercial Court is in charge of business registration. It has an electronic database of registered business entities, contracts on financial leasing and pledges.

60. How many documents do you need to register an LLC? Three documents: Founding decision, bylaws and a copy of the passport (if you are founding a company as an individual) or registration form for the specific type of company. Samples of all documents are available for download at the following web site: www.crps.me

61. What types of companies does the Montenegrin law permit? Montenegrin law permits the establishment of six types of companies: Entrepreneur, Limited Liability Company (d.o.o.), Joint Stock Company (a.d.), General partnership (o.d.), Limited partnership (k.d), and Part of a foreign company.

If Entrepreneur wants to conduct business under a different name it is nessesery to register company in Commercial Court, and he/she needs to present:

• Personal identification card; • No minimum capital requirement; • Completed registration form;4 • Registration fee of €10 • Administrative fee of €12 for placing an advertisement in the Official Gazette of Montenegro 4

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Limited Liability Company (d.o.o.) • One to thirty persons • Founding act; (The Foundation Agreement); • Contract of decision of company’s foundation (The Charter); • Minimum capital requirement of €1; • Completed registration form; • Registration fee of €10 • Administrative fee of €12 for placing an advertisement in the Official Gazette of Montenegro

Joint Stock Company (a.d.) • Founding act (The Foundation Agreement); • Contract of decision of company’s foundation (The Charter); • List of names of all members of boards and managers; • Decision of the Securities Commission approving the prospectus for the public offering of shares; • Decision of the Securities Commission determining the successfulness of the issue; • Minimum capital requirement of €25,000; • Completed registration form; • Registration fee of €50 • Administrative fee of €12 for placing an advertisement in the Official Gazette of Montenegro

General partnership (o.d.) • Two or more persons; • No minimum equity requirement; • Completed registration form; • Registration fee of€10;

Limited partnership (k.d) • Two or more individuals; • No minimum equity requirement; • Completed registration form; • Registration fee of €10

Part of a foreign company (Foreign Company Branch) • An authenticated copy of the charter of the foreign company and a translation of the charter in the duly certified as a true and correct translation; • Registration certificate from the home country; • Financial reports; • Completed registration form; • Registration fee of €10; • No minimum equity requirement;

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After fulfilling all these requirements, it is necessary to open a bank account. After that, the company reports to Tax Authority in order to receive a PIB (taxation identi- fication number) and VAT number (Value Added Tax).

62. Is privatization of the state enterprises completed in Montenegro? No. From the beginning of the privatization process in 2000 through the end of 2015, more then 90 percent of Montenegrin companies have been privatized. The privat- ization process in Montenegro was described as one of the most successful of all the countries in transition.

63. Which methods of privatization are used?

The Law on Privatization covers privatization methods, and they are as follows:

• Public auction- open competitive bidding based on price; • Public tender- public gathering of bids of potential buyers in accordance with determined rules and conditions of sale beforehand; • Privatization though bankruptcy

64. Is Privatization Plan public document? Yes. The most recent Privatization Plan is available on the web MIPA’s web site (www. mipa.co.me) or at the Privatization and Capital Investment Council website (www. savjetzaprivatizaciju.me).

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65. What are investment opportunities in the energy sector of Montenegro? Energy Development Strategy of Montenegro by 2025 offers the following opportu- nities in the energy sector:

• Construction of the second unit of Thermo Power Plant “”(225 MW); • Open pit mine “Maoce”; • Construction of 4 hydro power plants on River Moraca with total power of 238,4 MW; • Construction of hydro power plant “Komarnica” (168 MW); • Construction of small hydro power plants; • Renewable energy sources (wind, waste, biomass, solar energy); • Projects aiming at improvement of energy efficiency.

66.. How are imports customs regulated? Import duties are set by the Customs Tariff as an integral part of the Customs Tariff Law, which is fully based on Harmonized Commodity Description and Coding System (HS System) and coordinated with the EU Combined Tariff. The value of goods, which serves as the customs assessment base is CIF (Cost + Insurance + Freight). More in- formation on custom procedures can be found on the following website: http://www. upravacarina.gov.me/uprava

67. What is the average customs rate in Montenegro? The average customs rate is 5,88%.5

68. Which countries are Montenegro’s major foreign trade partners? According to the recent statistical figures major foreign trade partners are: Serbia, China, Italy, Greece, Slovenia, Bosnia and Herzegovina, Croatia, Germany, Austria, Switzerland and Hungary.

69. Which goods dominate Montenegrin exports and imports? According to Monstat6 the following products dominate in export and import:

Source: MONSTAT 70. Does Montenegro have preferences for export to EU? Yes. The EU has taken steps to stimulate exports of countries in the region through the establishment of autonomous trade preferences (ATP) that provide duty-free entry for over 95% of goods. Exemptions include wine, meat and steel. Products originating from Montenegro are generally admitted for import into the European Union without quantitative restrictions and are exempted from customs duties and charges. The products excluded from the free import regime are agricultural products, “baby beef ” products and textile products. 5 (Source: Ministry of Finance) 6 Statistical Office of Montenegro

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71. Does Montenegro have any Free Trade Agreement? Montenegro has signed the Central European Free Trade Agreement (CEFTA) on July 26, 2007. The agreement has been signed with seven countries (Albania, Macedonia, Moldova, Montenegro, UNMIK/Kosovo, Croatia, Serbia, and Bosnia and Herzegovina). Fee-trade Agreement was signed with , on November 26, 2008. This agreement is in force from March 1, 2010. Montenegro had Free Trade Agreement with Russia, and the agreement is in the negotiation process now. Also as part of the negotiations with Russia there are negotiations on free trade agreements with Kazakhstan and , which formed a customs union together with Russia. Free-Trade Agreement between Montenegro and members of the European Free Trade Association (EFTA) was signed in November 2011. This agreement is in force from September 1, 2012. Although four EFTA countries are small, they are the World leaders in several sectors vital to the global economy. and Switzerland are internationally renowned financial centers and hosts to major companies and multinationals, while Iceland and Norway stand out in fish production, the metal industry and maritime transport. Free Trade Agreement between Montenegro and was signed on November 18, 2011.

72. Are there any Free zones in Montenegro ? The Government of Montenegro, Port of Bar JSC and Municipality of Bar founded the Free Zone of the Port of Bar. Zone officially started to work in 2005. Users of the Free Zone enjoy many benefits provided by the Law on Free zones (adopted in 2004) and other regulations (Import free of paying custom duties, custom fees and VAT, storage of goods in the duty free regime for an unlimited period of time, a wide range of possible activities and potential users, low corporate tax, simplified procedures etc).

73.What is total size of Free Trade Zone within Port of Bar? Total area of the territory on which it is possible to carry out business activities within the regime of free zone amounts to 134,4 ha. Main focus is on its development and expansion into the depth of »Barsko polje«, in accordance to requirements of poten- tial users and through provision of formal legal conditions (putting into application, arranging appropriate space, obtaining approvals of customs bodies).

74. Why you should become user of the Free Zone Port of Bar? • Zone user is not liable to pay profit tax of legal entity; • Goods entering the Zone are not liable to customs, custom duties and value added tax regardless of the type of imported goods and its purpose in the zone; • All economic activities can be carried out inside the Free zone except those that pose threat to the environment, health of people, material goods and security of the country; • It has been provided that investors from abroad have completely equal conditions in terms of right to investment, obtaining ownership rights on constructed faci- lities and organizing activities in them;

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• It has been secured to have exploitation of land and facilities in the zone according to long term lease under fixed conditions; • Goods entered into the Zone are allowed to stay there for unlimited time; • Goods may be temporarily taken out from the Zone into the other part of the Republic or enter into the Zone from the other part of the Republic for the purpo- se of its improving, fitting, attesting, testing, repair, marketing presentation and so on; • Goods directed from the Zone into the other part of the territory of the Republic for the sake of its putting in on the market is liable to customs, custom duties and value added tax at the moment of its parting the Zone and customs and customs duties are payable exclusively on foreign components included in the goods; • Users freely carry out payment operations for business activites abroad as well as all mutual payments in a manner contracted, with contracted deadlines, in contracted currency through bank in the Zone or other bank.; • Investment of the capital in the area of the Zone as well as profit and investment transfer are free;

75. What is the Personal Income Tax? Personal income tax is 9% with introduction of temporary tax rate of 15% applicable only on the salaries above the 480 EUR net.

76. What is the corporate income tax rate? The corporate profit tax in Montenegro is 9% flat.

Source: MIPA based on IPA of countries statistic

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77. Who is exempted from payment of tax on profits? State authorities, state administration authorities, local self-government authorities, public funds, public institutions, tourism organisations, sports clubs, sports associa- tions and federations, religious communities, arts associations, political parties, chambers, trade unions and non-governmental organisations, shall not pay the Prof- it Tax if they are established under a special law to carry out a non-profit activity.

78. Which countries have signed the Double Taxation Treaty with Montenegro? Montenegro signed 42 treaties with various countries on income and property, which regulate double taxing. At this moment, 41 treaties are in force, while 1 (with India) is pending. In force are treaties concluded with Albania, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Finland, , Germany, Greece, Hungary, Italy, Ireland, Korea, Kuwait, Latvia, Macedonia, Malaysia, Moldova, Malta, Holland, Norway, , Romania, Russia, Serbia, Slovakia, Slovenia, Sri Lanka, Sweden, Switzerland, Turkey, Ukraine, , and United Arab Emirates.

79.What are the Value Added Tax rates? The standard VAT rate in Montenegro is 19%, but there are reduced rates of 7% for tourism, IT equipment and 0% for some basic products. The VAT turnover period averages 30 days.

Value Added Tax rates (%)

Hungary 27 Croatia 25 Romania 24 Slovenia 22 Albania 20 Bulgaria 20 Serbia 20 Montenegro 19 Macedonia 18 Bosnia & Herzegovina 17

0 5 10 15 20 25 30

Source: www.worldwide-tax.com

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80. Does VAT exemption exist? The Law allows VAT exemptions related to:

• Services of public interest such as: public postal services, health services, social secu- rity services, education services, services from the area of culture, sports, public radio diffuse service, religion services and services of nongovernmental organizations. • Import of certain goods such as: imported products exempted from customs duties, official needs of diplomatic, consular missions and international organi- zations and members of such organizations; products in transit; services related to import of products, if their value is included in the tax base; products intend- ed for presentation to the customs authority and when their temporary storage is allowed, in accordance with the customs regulations or being brought into duty free zone, or free customs warehouse; initiation of the procedure for customs warehousing or import procedure for the purpose of import under differed pay- ment regime. • Other exemptions from VAT are related to: insurance and reinsurance services; turnover of immovable property (with the exception of newly constructed); fi- nancial services; services of renting dwelling premises for the period exceeding 60 days; gold and other precious metals, banknotes and coins imported by the Central Bank of Montenegro; games related to games of chance and entertain- ment games.

81. What are tax and customs incentives in Montenegro? Foreign Investment Law stipulates that foreign investor who is operating on the ter- ritory of Montenegro can set up a new company or invest in an existing company’s assets, under the same terms and conditions that domestic persons have to obey in order to set up a company or invest in existing company.

Tax incentives: • Tax credits - Tax amount can be reduced by 25% in relation to the amount invest- ed in fix assets for the relevant tax period. This reduction cannot exceed 30% of the total tax liability. • Incentives for investments in underdeveloped areas (northern part of the coun- try) - newly established companies in underdeveloped areas whose operational field is production are exempt from paying corporate tax during the first three years of activity. • Loss transfer - Losses resulting from business operations, with the exeption of losses resulting from capital gains and losses, can be transferred forward to offset profit generated in future calculation periods, but no longer than for a period of five years. • Investments in securities: If the profit from capital investment is used to purchase new securities, then this profit is not subject to taxes, under the condition of being reinvested within twelve months from its inception. Profit from the sale of securities owned by a taxpayer who has more than two years in its portfolio is exempt from taxation.

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Customs exemptions • Import of raw materials - Investor is not obliged to clear raw materials, in case the company in question made a commitment to export finished products made of the same imported raw materials. • Import of equipment defined as foreign investor’s capital - Investor is not obliged to pay customs duty on imported equipment, but he has to pay VAT. It is necessary for the user of this exemption to have in his possession a certificate from customs authority competent to make a decision on customs duties exemption. • Exemption from payment of export customs duties - Investor is not obliged to pay export customs duties, but he has to pay VAT at a rate of 0%, on the basis of Law on Value Added Tax. This means that VAT on raw materials has to be paid, while VAT on export of finished products does not have to be paid. There is also a possibility of refund of VAT on raw materials.

82. What is the withholding tax regulation? A taxpayer of the Profit Tax shall be obliged to calculate, withhold and pay withhold- ing tax on payments made on the following bases: • Dividends and interests in profits paid to resident and non-resident legal entities and natural persons; • Interest, royalties and other intellectual property rights compensations, capital gain, movable and immovable assets lease fees, revenues from provision of consulting services, market research services and audit services paid to a non-res- ident legal entity.

The withholding tax shall be paid at the rate of 9% to a base made of gross revenue. In a case of calculation of the withholding tax for revenues paid to a non-resident legal entity, a payer of revenues shall apply provisions of an agreement for avoiding double taxation, provided that the non-resident proofs the resident status in the country with which Montenegro has concluded the agreement for avoiding double taxation and that the non-resident is the real owner of revenues.

83. What are property tax rates? Tax on property is paid by the title holder of property rights (ownership, right of use, etc.). Companies pay property tax at rates from 0.1% to 1%. In some cases, tax may be increased up to 5.5% (tourist areas). Tax is determined in the tax assessment, issued by the tax authorities up to 31 May of the current year.

• A transfer tax of 3 % is levied on the transfer of immovable property. • The local governance unit may set the property tax rates according to the cate- gories of immovable property; • The tax rate on the sale of non-cultivated land is up to 50% higher compared to cultivated land.

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84. What are the conditions for establishment of employment relations? Employment relations may be established with a person who possesses general health, who is over 15 years of age and who meets the criteria for the position established, as definned by the employer. The legal basis for employment relations is the labor contract, which can also be signed by disabled persons who are capable of perform- ing the work in question. Law on Employment and Work ofForeigners (Official Gazette of the Republic of Montenegro, No. 22/08) provides that a foreigner may hire or work in Montenegro, under the conditions determined by law, collective agreement, rati- fied and published international treaties and generally accepted rules of internation- al law. According to the law, the term foreigner represents a person who is not a Montenegrin citizen, whether he is a citizen of another state or a stateless person, and does not make distinguish between foreign-EU nationals and nationals of third countries.

85. How can foreigners obtain work permits? According the Law on employment of foreigners (Official Gazette of Montenegro #22/08) and Law on work (Official Gazette49/08, # #59/11, #66/2012), work permit is issued by Employment Agency of Montenegro. After that, foreigner can obtain residence permit at the Ministry for Interior Affairs. According the Law of foreigners, foreigners who own real estate in Montenegro can obtain a residence permit for a period of one year.

86. What are the steps for obtaining a work permit? • Obtaining of work permit from the Employment Bureau of Montenegro; • Obtaining resident permit from Ministry for Interior Affairs; • Signing labor contract and insurance; • Final approval from Employment Agency of Montenegro.

87. What types of work permits exist in Montenegro? To regulate all forms of employment and work of foreigners in the labor market of Montenegro envisages three types of work permits: personal work permit, employ- ment permit and work permit.

• Personal work permit - is a license that allows free access to foreigner labor market, regardless of the state and market relations. A foreigner with a personal work permit has an equal status as a Montenegrin citizen in terms of unemploy- ment and employment rights. This work permit can be issued to a foreigner: with permanent residence, in accordance with the Law on foreigners, refugees and additionally protected persons, according to the Law on Asylum (Official Gazette of MN, no. 45/06). Personal work permit is issued upon the request of the for- eigner for a indefinite period of time, and exceptionally may be issued for a pe- riod up to one year.

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• Employment permit - is a permit according to which an employer makes labor contract with a foreigner and is issued upon the request of the employer. Permit for employment and work of foreigners shall be issued upon the request of the employer, legal person or organizational unit of a foreign company, registered in Montenegro. It is issued for the period of one year, but it may be prolong up to 2 years. • Work permit - is a permit issued for foreigners who work in their residence coun- try and who have work contract in Montenegro. This permit could be for:

• Seasonal work of foreigners • Work with the addressed foreigners (cross-border services, further training and education, movement of persons within a foreign company) • Training and education of foreigners and • The provision of contractual services.

Permits are issued for a limited time, for a period of three months to one year, ex- tendable to two more years, depending on the type of permit. The Employment Bureau shall be obliged to decide on the request within 30 days from the day of submitting the request.

88. Which employment category does the law stipulate? A labor contract may be drawn for an indefinite or definite period of time. A labor contract for a definite period of time may be established for specific engagements such as seasonal jobs, specific projects etc.

89. What are the possibilities for temporary and periodical work? An employer may establish a contract with a particular person for performance of temporary and periodical work, relating to his line of business. Temporary work may last one year, and can be prolonged up to two years. A person with whom a contract has been concluded is entitled to pension, disability and health insurance. Temporary and periodical works are limited in time, and not in quantity of work and number of involved persons. Working hours in contracts of temporary and periodical works usually matches with working hours of employees.

90. Is it possible to conclude a part time work contract? Yes, the labor contract may be concluded for part time work, for a definite or indefi- nite period of time. The employee who signs this kind of contract has the same rights as employees who work full time, in proportion to the time spent at work.

91. Can an employer hire trainees? Yes, the employer may establish employment relations with a person who is entering employment for the first time, as a trainee. Trainee status can last nine month or one year. While having trainee status, the employee is entitled to earning.

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92. Is it possible to conclude a special service contract? Yes, an employee may conclude a special service contract to perform jobs outside the line of the employer’s business, and with the intention of independent execution of particular physical labor or intellectual work.

93. What is the amount of minimum wage and average net salary? The employee is entitled to a minimum wage for standard performance and full working hours. The average earnings (gross) in Montenegro are 754 € (October 2016), while the average earnings without taxes and contributions (net) are 502 €. Mutual consent of the government, the representative trade union and the representative association of employers established the minimum wage.

94. What types of collective contracts are there in Montenegro? The collective contract regulates the rights, obligations and responsibilities arising from employment, mutual relationship among the parties to the collective contract and other matters of importance to the employee and the employer.

• General – concluded between the representative employer association and the representative trade union for the territory of Montenegro. • Branch - valid for certain industries, and concluded by the representative em- ployer association and the representative trade union. • Individual – concluded between the representative trade union of the employer and the manager.

95. What are incentives for investors who hire local workforce? In January 2015 Government issued a new Decree on fostering direct investments, in order to further improve FDI income and investment incentives. According to this Decree, funds for fostering investments may be awarded for investment projects of EUR 500.000 (minimum investment value) which generate the opening of 20 new jobs (minimum). Fulfilling these terms, investors are guaranteed to receive from 3.000 to 9.000 € per workplace.

96. What are full time working hours? The working week consists of 40 working hours. According to the Labor Law, it is possible under certain circumstances to sign a contract specifying a minimum 10 hour workweek.

97. How many public holidays are there in Montenegro? There are six public holidays in Montenegro:

• New Year: 1st and 2nd of January. • Christmas: 6th, 7th and 8th of January. • Labor day: 1st and 2nd of May.

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• Independency Day: 21st May • The National Day: 13th and 14th of July. • Easter holidays: Starting with Good Friday and concluding with Monday. Religious holidays: Christmas, Easter and Bayram.

All holidays in Montenegro are celebrated two days. Major religious holidays are also celebrated. If holiday falls on a Sunday, the following two days are deemed to be a holiday. If the second day of holiday falls on a Sunday, the following workday is deemed to be a public holiday.

98. Are overtime working hours limited? Yes, they are limited to 10 hours per week. Overtime is authorized for employees in the case of a sudden increase in the scope of work, and in other cases when the completion of unplanned work is necessary, within a specific time limit. Overtime working days may be repeated as often as necessary, until the causes that have in- fluenced the issuing of overtime cease to exist.

99. What is the minimum annual leave? According to new General Collective Agreement (GCA), employers are obliged to increase the statutory minimum annual leave (20 working days) for one to five work- ing days, depending on the total length of the employee’s service (one working day for employees with 5-15 years of service, two working days for employees with 15-25 years of service, three working days for employees with 25-35 years of service, and five working days for employees who have generated over 35 years of employment). Employees with disabilities and parents whose children have development difficulties are entitled to additional three working days, in additional to the general extension granted by the GCA. A single parent of a child not older than 15 years of age is entitled to additional two days of annual leave. The GCA also extends the reasons for paid leave given in the Labour Law, defining the length of paid leave in each case, and introduces grounds for unpaid leave, which may last up to 30 days within a calendar year.

100. How long can a maternity leave last in Montenegro? A female employee shall be entitled to a 365-day maternity leave and leave for nurs- ing a child. During maternity leave, the employee is entitled to the same salary that she would have earned if she had worked. The salary is paid by the employer, but is refunded by the government in the amount up to two average salaries.

101. In which cases are employees entitled to increased earnings? The employee is entitled to increased earnings in accordance with the General Col- lective Agreement for: overtime work, work during public holidays, night work and work in shifts, with a minimum of:

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• For work during public holidays: 50% over base wage, per hour; • For night work and work in shifts (between 22h and 6h): 40% over basewage, per hour; • For overtime work: 40% over base wage, per hour.

If more than one of these grounds cumulatively applies (for example, the employee works overtime on a public holiday), percentages of increase shall be added up start- ing 1 May 2015.

Salary is regularly increased for each commenced year of employment, as follows: 0.5% per each year of employment service if the employee has up to 10 years of service, 0.75% per year of service for employees with 10-20 years of service, and 1% per year of service for employees with over 20 years of service.

Employers have a new obligation - to pay at least two minimal net salaries to the employee, in case of death of his/her immediate family member, or to the employee’s immediate family member, in case of the employee’s death.

102. How are employees compensated during absences? For absences during public holidays, annual and paid leave the employee is entitled to a salary in the amount that he/she would have earned if had worked. The employ- ee is also entitled to compensation of earnings for absence from work due to tem- porary inability to work, lasting up to 30 days. The amount equals 100% of the salary if the inability is work related.

103. What are the current mandatory social insurance contribution rates? • Pension and disability insurance: 20.5% - (5.5% is paid by the employer and 15.0% by the employee); • Health insurance: 12.3% (3.8% is paid by the employer and 8.5% by the em- ployee); • Unemployment insurance: 1% (0.5% is paid by the employer and 0.5% by the employee).

Presented percentages are based on gross salary.

104. What is the correlation between net and gross salaries? Average gross wage in October 2016 was 720€,while average net wage (without taxes and contributions) was 477€.

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Net Wages Gross Wages October 2015 in € October 2015 in € Agriculture, forestry and fishing 481 707 Minning and quarrying 593 910 Manufacturing 430 654 Electrity, gas, steam and air conditioning 793 1,234 supply Water supply, sewerage, waste management 458 689 and remediation activities Construction 415 628 Wholesale and retail trade, repair of motor 336 506 vehicles and motor recycles Transportation and storage 517 778 Accommodation and food service activities 385 576 Information and communication 660 1,022 Financial and insurance activities 858 1,335 Real estate activities 655 1,088 Professional, scientific and tehnical activitities 415 630 Administrative and support service activities 348 524 Public administration and defence, compulsory 499 756 social security Education 455 687 Human health and social work activities 486 731 Arts, entertainment and recreation 382 577 Other service activities 430 657

105. In which cases the employer has right to terminate an employment contract? An employer may dismiss an employee for causes related to the employee’s work- ability and behavior as well as the employer’s needs in following cases:

• Due to the failure to achieve the results of which are set out in the collective agreement, employment act or contract, for a period not shorter than 30 days; • Due to non-compliance with the obligations foreseen by the law, collective agree- ment or contract of employment, which must comply with the law and the col- lective agreement; • If employees conduct is such that he/she cannot continue to work for the em- ployer as required by law and the collective agreement or the employment act, which must comply with the law and the collective agreement; • If he/she misuses the right to leave for temporary disability; • Due to economic problems in business; • In the case of technological and structural changes due to which the need for his/her employment ceased.

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106. How are lay-off costs regulated in Montenegro? An employee whose employment contract has been terminated due to unsatisfacto- ry performance at work or due to a lack of required qualifications and ability, is en- titled to severance pay. According to the Labor Law minimum amount severance pay is equal to six average wages.

107. What is the educational structure of employed population? Educational structure of employed population Percentage Less than primary education - Primary education 7,2% Vocational education after primary school 20,4% Secondary general education 6,2% Secondary vocational education 41,4% First stage of tertiary school 4,4% Second stage of tertiary education, bachelors’, masters, or doctors’ degree 23,3% Source: Labour Force Survey(2nd quarter 2015), MONSTAT

Photo: Teo Holland; http://2driftingcoconuts.com/

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108. What is the number of newly employed people over last three years? Since the end of 2011 the number of employed persons in Montenegro is increasing. In 2013 there were around 197,300 employees, 215,600 in 2014, while in second quarter of 2015, there were 226,100 employed people in Montenegro.

109. What is the total number of schools, universities and students in Montenegro? There are 432 elementary schools (out of which 163 are state schools, while remain- ing 269 are district classes), 49 high schools including Quality School International and three universities (State with 22 faculties and one higher school, University of Donja Gorica with 13 and with 6 faculties). In addition there are 5 faculties that enroll students and do not belong to any of mentioned universities. Number of pupils in Montenegro is around 100000, in both elementary and high schools, while number of students is around 25000.

110. What is the current Montenegrin visa regime for foreigners? The citizens of EU member countries, countries of Schengen agreement, do not need visa in order to enter in Montenegro. Citizens of these countries can stay up to 90 days and may be in transit over the territory of Montenegro on the basis of a val- id travel document. All mentioned can be applied for the following countries as well: Albania, Andorra, Australia, Azerbaijan, Argentina, Bermuda, Belarus, Bosnia and Herzegovina, Brazil, Canada, Chile, Guatemala, Holly See, Honduras, El Salvador, Ireland, Iceland, , Japan, Cyprus, , Costa Rica, Macedonia, Malaysia, Mexico, Moldavia, Monaco, Nicaragua, New Zealand, Panama, Paraguay, San Marino, The Seychelles, Singapore, the USA, Serbia, Switzerland, Turkey, United Arab Emirates and Uruguay. Citizens of the following countries may enter, pass through the territo- ry and stay in Montenegro for up to 30 days with a valid travel document: Ecuador, Kosovo, Cuba, Liechtenstein, Peru, Russia, Ukraine and Venezuela. Based on bilater- al agreements, visa is canceled on diplomatic passports for the following countries: Georgia, Hong Kong, Morocco and Mongolia.

111. Does Montenegro have representative offices abroad? Yes. Below is the list of Montenegrin Embassies, General Consulates and Permanent Missions of Montenegro to international organizations.

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EMBASSIES & CONSULATE GENERALS OF MONTENEGRO

EMBASSY OF MONTENEGRO IN THE REPUBLIC OF ALBANIA Rruga ,,Abdi Toptani “, pallati ,,Tore Din”, kati 8, apart. 81-82 , Albania Tel: (+355 422) 613 09 Tel/Fax: (+355 422) 574 06 Fax: [email protected] Ambassador Dušan Mrdović

EMBASSY OF MONTENEGRO IN THE ARGENTINA REPUBLIC (ACCREDITED TO THE FEDERATIVE REPUBLIC OF BRAZIL) Libertad 1173, Piso 1-A Capital federal Buenos Aires, Argentina Tel: (+54) 11 4816-6701 Email: [email protected] Ambassador Gordan Stojović

EMBASSY OF MONTENEGRO IN THE REPUBLIC OF AUSTRIA (ACCREDITED TO THE CZECH REPUBLIC AND REPUBLIC OF SLOVAKIA) Nibelungengasse 13 1010 Wien, Austria Tel: (+43 1) 715 3102 Fax: (+43 1) 715 3102 20 Email: [email protected] Ambassador Ivan Milić

EMBASSY OF MONTENEGRO IN THE KINGDOM OF BELGIUM (ACCREDITED TO THE NETHERLANDS AND THE GRAND DUCHY OF LUXEMBOURG) Ambassade du Monténégro, rue du Trône 117 1050 Bruxelles, Belgium Tel: (+32 2) 705 28 51 Fax: (+32 2) 726 01 55 Email: [email protected] Ambassador Vladimir Radulović

EMBASSY OF MONTENEGRO IN THE FEDERATION OF BOSNIA AND HERZEGOVINA Talirovića 4 71000 , Bosna and Herzegovina Tel: (+387 33) 239 925, 239 927 Fax: (+378 33) 239 928 Email: [email protected] Ambassador Milan Lakic

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EMBASSY OF MONTENEGRO IN THE REPUBLIC OF BULGARIA 1 Alexander Jendov str., Ap. 29, Sofia, Bulgaria Tel: (+3592) 8581378 Fax: (+3592) 8581378 Email: [email protected] Ambassador Milomir Mihaljevic

EMBASSY OF MONTENEGRO IN THE PEOPLE’S REPUBLIC OF CHINA (ACCREDITED TO THE REPUBLIC OF INDONESIA AND THE REPUBLIC OF KOREA) 3-1-12 San Li Tun Diplomatic Compound Beijing 100600, People’s Republic of China Tel: (+8 610) 6532 7610 Fax: (+8 8610) 6532 7662; 6532 7690 Email: [email protected] Ambassador Branko Perovic

EMBASSY OF MONTENEGRO IN THE REPUBLIC OF CROATIA Trg Nikole Šubića Zrinjskog 1/IV 10000 , Croatia Tel: (+385 1) 457 33 62; Fax: (+385 1) 457 34 23 Email: [email protected] Ambassador Boro Vučinić

EMBASSY OF MONTENEGRO TO THE FRENCH REPUBLIC (ACCREDITED TO ANDORA AND THE PRINCIPALITY OF MONACO) 5 rue de la Faisanderie 75116 Paris, France Tel: (+33 1) 53 63 80 30; Fax: (+33 1) 42 22 83 90 Email: [email protected] Ambassador Dragica Ponorac

EMBASSY OF MONTENEGRO TO THE FEDERAL REPUBLIC OF GERMANY Charlottenstrasse 35/36 10117 Berlin, Germany Tel: (+49 30) 516 51 070; 516 51 07 23; Fax: (+49 30) 516 5107 19; 516 5107 12 Email: [email protected] Ambassador Vera Kulis

CONSULATE GENERAL OF MONTENEGRO TO THE FEDERAL REPUBLIC OF GERMANY Charlottenstrasse 35/36 10117 Berlin, Germany Tel: (+49 30) 516 51 070; 516 51 07 23; Fax: (+49 30) 516 5107 19; 516 5107 12 Email: [email protected] Ambassador Ranko Vujačić

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EMBASSY OF MONTENEGRO TO THE REPUBLIC OF GREECE (ACCREDITED TO THE REPUBLIC OF CYPRUS) Loukianou 5, 10675 Kolonaki Athens, Greece Tel: (+30 210) 724 12 12; Fax: (+30 210) 724 10 76 Email: [email protected] Ambassador Petar Popović

EMBASSY OF THE HOLY SEE AND THE SOVEREIGN ORDER OF MALTESE KNIGHTS Via Crescenzio 97 00193 Rome, Italy Tel: +39 06 68 13 48 97; Fax: +39 06 83 77 05 26 Email: [email protected] Ambassador Veselin Šuković

EMBASSY OF MONTENEGRO TO THE REPUBLIC OF HUNGARY Arany Janos 15/I 1051 Budapest, Hungary Tel: (+36 1) 373 03 00; 373 03 01; Fax: (+36 1) 269 44 75 Email: [email protected] Ambassador Aleksandar Moštrokol

EMBASSY OF MONTENEGRO IN THE REPUBLIC OF ITALY (ACCREDITED TO THE REPUBLIC OF MALTA AND TO THE REPUBLIC OF SAN MARINO) Via Antonio Gramsci 9 00197 Roma, Italy Tel: (+39 06) 888 577 45; Fax: (+39 06) 888 577 43 Email: [email protected] Ambassador Antun Sbutega

EMBASSY OF MONTENEGRO IN THE REPUBLIC OF KOSOVO Rr. Nëna Terezë 28/3 10000 Pristina, Kosovo Tel: (+381) 38 222 048 Fax: (+381) 38 222 054 Email: [email protected] Ambassador Ferhat Dinosha

EMBASSY OF MONTENEGRO IN THE REPUBLIC OF MACEDONIA Vasil Stefanovski No.7 1000 , Macedonia Tel: (+389 2) 3227 277 Fax: (+389 2) 3227 254 Email: [email protected] Ambassador Predrag Mitrovic

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EMBASSY OF MONTENEGRO IN THE REPUBLIC OF POLAND (ACCREDITED TO REPUBLIC OF LATVIA, REPUBLIC OF ESTONIA AND REPUBLIC OF LITHUANIA) Aleje Ujazdowskie 41 Warshaw, Poland Tel: (+48 22) 319 56 70 Fax: (+48 22) 319 56 74 Email: [email protected] Ambassador Ljiljana Tošković

EMBASSY OF MONTENEGRO IN ROMANIA (ACCREDITED TO PRINCIPALITY OF MOLDAVIA) District 1, Emanoil Porumbaru St, No. 17 Bucharest, Romania Tel: (+40) 31 101 1900 Fax: (+31) 101 1901 Email: [email protected] Ambassador Milan Begović

EMBASSY OF MONTENEGRO IN THE RUSSIAN FEDERATION (ACCREDITED TO THE REPUBLIC OF BELARUS AND THE REPUBLIC OF KAZAKHSTAN) Mytnaya 3, office 23-25, II 119049 Moscow, Russian Federation Tel: (+7 499) 230 18 65; 230 18 76 Fax: (+7 499) 230 18 86 Email: [email protected] Ambassador Igor Jovović

EMBASSY OF MONTENEGRO IN THE REPUBLIC OF SERBIA Knez Mihajlova 10/IV 11000 Belgrade, Serbia Tel: (+381 11) 266 89 75 Fax: (+381 11) 369 95 46 Email: [email protected] Ambassador Branislav Mićunović

EMBASSY OF MONTENEGRO IN REPUBLIC OF SLOVENIA Njegoševa cesta 14 1000 Ljubljana, Slovenia Tel: (+386 1) 439 53 64 Fax: (+386 1) 439 53 60 Email: [email protected] Ambassador Miomir Mugoša

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EMBASSY OF MONTENEGRO IN THE SWISS CONFEDERATION (ACCREDITED TO PRINCIPALITY OF LIECHTENSTEIN) Botschaft von Montenegro Spitalgasse 9 3011 Berne, Switzerland Tel: +41 (0) 31 311 54 90 Fax: +41 (0) 31 311 54 92 Email: [email protected] Ambassador Damir Grbović

EMBASSY OF MONTENEGRO IN THE REPUBLIC OF TURKEY (ACCREDITED TO THE ISLAMIC REPUBLIC OF IRAN AND REPUBLIC OF AZERBEJIAN) Büyükesat, Gökçek sokak No.11, 06700 Gaziosmanpaşa, , Turkey Tel: (+90 312) 436 46 98 Fax: (+90 312) 436 15 46 Email: [email protected] Ambassador Branko Milić

EMBASSY OF MONTENEGRO TO THE UNITED ARAB EMIRATES (ACCREDITED TO THE KINGDOM OF BAHRAIN AND THE STATE OF QATAR) Villa 1, Building 69, Rabdan st 29, Al Mushrif Abu Dhabi, P.O. Box 95083, UAE Tel: (+ 971) 2441 89 01 Fax: (+ 971) 2441 89 00 Email: [email protected] Ambassador Darko Uskoković

EMBASSY OF MONTENEGRO IN THE UNITED KINGDOM OF GREAT BRITAIN (ACCREDITED TO IRELAND AND ICELAND) 47 De Vere Gardens London W8 5AW, Great Britain Tel: (+44 20) 3302 7227 Fax: (+44 20) 7243 93 58 Email: [email protected] Ambassador Borislav Banović

EMBASSY OF MONTENEGRO IN THE UNITED STATES OF AMERICA (ACCREDITED TO CANADA AND THE UNITED MEXICAN STATES) 1610 New Hampshire Avenue NW Washington D.C. 20009, USA Tel: (+1 202) 234 61 08 Fax: (+1 202) 234 61 09 Email: [email protected] Ambassador Nebojša Kaluđerović

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CONSULATE GENEREAL OF MONTENEGRO IN THE UNITED STATES OF AMERICA (ACCREDITED TO THE REPUBLIC OF COSTA RICA AND THE REPUBLIC OF CUBA) 801 Second Avenue, 7th Floor New York 10017, USA Tel: (+1 212) 661 5400 Fax: (+1 212) 661 5466 Email: [email protected]; [email protected] Consul General Zoran Janković Ambassador for the Republic of Costa Rica and the Republic of Cuba Milorad Šcepanović

EMBASSY OF MONTENEGRO TO THE REPUBLIC OF ARMENIA (ACCREDITED TO UKRAINE) Stanka Dragojevića 2 81000 Podgorica, Montenegro Tel: (+382) 20 201 550 Fax: (+382) 20 225 702 Email: [email protected] Ambassador Ljubomir Mišurović

EMBASSY OF MONTENEGRO TO THE KINGDOM OF DENMARK, THE REPUBLIC OF FINLAND, THE KINGDOM OF NORWAY AND THE KINGDOM OF SWEDEN Stanka Dragojevića 2, 81000 Podgorica, Montenegro Tel: (+382) 20 225 601 Fax: (+382) 20 225 536 Email: [email protected] Ambassador Miroslav Šćepanović

EMBASSY OF MONTENEGRO TO GEORGIA Stanka Dragojevića 2, 81000 Podgorica, Montenegro Tel: (+382) 20 201 550 Fax: (+382) 20 225 702 Email: [email protected] Ambassador Ljubomir Mišurović

EMBASSY OF MONTENEGRO TO THE STATE OF ISRAEL Stanka Dragojevića 2, 81000 Podgorica, Montenegro Tel: (+382) 20 225 601 Fax: (+382) 20 225 536 Email: [email protected] Ambassador Tamara Mugoša

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PERMANENT MISSIONS OF MONTENEGRO TO INTERNATIONAL ORGANIZATIONS

PERMANENT MISSION OF MONTENEGRO TO THE UNITED NATIONS 801 Second Avenue, 7th Floor New York 10017, USA Tel: (+1 212) 661 3700 Fax: (+1 212) 661 3755 Email: [email protected] Ambassador Zeljko Perović

PERMANENT MISSION OF MONTENEGRO TO THE UNITED NATIONS OFFICE AND OTHER INTERNATIONAL ORGANIZATIONS IN GENEVA Rue de Lausanne 147 1202 Geneva, Switzerland Tel: (+41 22) 732 66 80; Fax: (+41 22) 732 66 81; Email: [email protected] Ambassador, Permanent Representative Milorad Šćepanović

PERMANENT MISSION OF MONTENEGRO TO THE EUROPEAN UNION Rue du Trône 117 1050 Bruxelles, Belgium Tel: (+32 2) 223 55 61 Fax: (+32 2) 223 60 28 Email: [email protected] Ambassador/Head of mission Bojan Šarkić

PERMANENT MISSION OF MONTENEGRO TO NATO M. Worner Building, NATO HQ 1110 Bruxelles, Belgium Tel: (+ 32 2) 707 1069 Fax: (+ 32 2) 707 1070 Email: [email protected] Ambassador/Head of mission Dragana Radulovic

PERMANENT MISSION OF MONTENEGRO TO THE OSCE Nibelungenstrasse 13/II 1010 Wien, Austria Tel: (+43 17) 153 102 Fax: (+43 17) 153 102 20 Email: [email protected] Ambassador Slavica Milačić

50 111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017

PERMANENT MISSION OF MONTENEGRO TO THE COUNCIL OF EUROPE 18, Allée Spach 67000 Strasbourg, France Tel: (+33 3) 88 36 85 65 Fax: (+33 3) 88 35 07 24 Email: [email protected] Ambassador/Head of mission Bozidarka Krunic

PERMANENT MISSION OF MONTENEGRO TO THE UNESCO 216, Boulevard Saint Germain 75007 Paris, France Tel: (+33 1) 5363 80 30 Tel: (+33 1) 4222 83 90 Email: [email protected] Ambassador Dragica Ponorac

PERMANENT MISSION OF MONTENEGRO TO THE WORLD TRADE ORGANIZATION IN GENEVA Rue de Lausanne 147/VIII 1202 Geneva, Switzerland Tel: (+41 22) 731 15 35; Fax: (+41 22) 731 15 35; Email: [email protected]; [email protected] Ambassador, Permanent Representative Zorica Marić Đorđević

51 111 Frequently Asked Questions Edition 2017

Authors: Miloš Jovanović, MSc Dražen Vlaović, MSc Maja Vukašević, MSc Aleksandra Bučevac Goranović, BSc Jovana Perović, BSc Marija Kovačević, BSc Jelena Brajević, BSc Marija Bošković, BSc Nenad Radović, BSc Radovan Sekulić, BSc

Publisher: Montenegrin Investment Promotion Agency

Graphic design and layout: Studio MOUSE - Podgorica

Photo: Database of Montenegrin National Touristic Organization Stock photography

Print: Jovana Tomaševića 2A | 81000 Podgorica | Montenegro Phone/Fax: (+382 20) 203 140 | 203 14 | 202 910 | 202 911 www.mipa.co.me | [email protected]