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Montenegro introduces foreign investment screening: What investors must know before market entry
Source: eKapija
Tuesday, 22.09.2026.
23:38
Tuesday, 22.09.2026.
23:38
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(Photo: ChatGPT/AI generated)
Namely, on July 30, the Government adopted the proposal for the establishment of an efficient mechanism for the verification of foreign investments, while on September 11, the Ministry of Economic Development initiated the preparation of the draft law on the verification of foreign investments. The most important thing for investors is that the proposed system is not yet a law, but it is clear in which direction the regulation will move.
Who will have to count on verification
The proposed mechanism will apply to investors from countries that are not members of the European Union, but also to companies registered in Montenegro or the EU if they are directly or indirectly controlled by investors from a third country.
The screening would be applied when the investor acquires direct or indirect control, significant influence or at least 10% ownership or voting rights in a company operating in a strategically sensitive sector.
This means that the fact that the investment was made through a company registered in Montenegro would not in itself be sufficient to avoid the procedure. The competent authority could, according to the proposed model, look at the actual ownership structure and the ultimate beneficial owner.
Which sectors will receive special attention
The list of areas that could be subject to verification includes energy and energy infrastructure, ports, airports, railways and other transport infrastructure, electronic communications and digital infrastructure, cyber security, water management and water supply.
Healthcare, biotechnology and medical equipment manufacturing, financial infrastructure and payment systems, media, defense industry and dual-use goods, as well as artificial intelligence, semiconductors, quantum and other critical technologies are also covered.
A special group consists of investments that allow access to sensitive data of citizens, companies or the state, as well as investments related to critical raw materials, strategic resources, certain immovable properties and agricultural land.
For the investor, this practically means that, in addition to the value of the transaction, it will also be important what he buys, where he operates and what kind of access he gets to infrastructure, technologies, data or resources.
The investment will not be realized before the decision
One of the most important novelties for potential investors will be the pre-approval principle.
According to the proposed model, the investor would submit data on the ownership structure and ultimate beneficial owner to the Ministry of Economic Development prior to the realization of the transaction.
business operations of the investor and the target company, transaction value,
source of financing and planned effects of investment.
After receiving the complete documentation, the Ministry would have 45 calendar days for the initial verification. If no security or public order risks are identified, the investment would be approved. If there are elements of risk, a detailed check would follow.
This is an important difference compared to classic administrative procedures for investments: for transactions that will be covered by the new system, the investor will not be able to consider that the deal is completed by signing the contract or acquiring the stake.
What the Government can decide
After the check, three possibilities are foreseen: the investment can be approved without additional conditions, approved with certain protective measures or prohibited.
The final decision would be taken by the Government of Montenegro, on the proposal of the Ministry of Economic Development and with the prior opinion of the Council for the Verification of Foreign Investments.
If the assessment shows that the risk can be controlled, the investor could be subject to certain measures such as limiting access to certain data, the obligation to maintain key infrastructure in Montenegro or the appointment of security-checked persons to certain functions.
In other words, the objective of the procedure will not necessarily be to stop the transaction. The proposed model also foresees the possibility of the investment being realized under conditions that would reduce the identified risks.
Particular attention to the ownership structure
For foreign investors, an important part of the new system will be the verification of who is behind the investment.
It is envisaged that the competent authority can examine intermediate transactions, related companies, nominal owners and other legal constructions that could conceal the real investor or ultimate beneficial owner.
In doing so, the economic essence of the transaction would be evaluated, not only its formal structure.
Additionally, before recommending a specific investment, the sanctions status of the foreign investor and related persons should be checked, in accordance with the regulations on restrictive measures.
Non-reporting can bring serious consequences
Investors will also have to take into account whether a specific transaction is covered by the system. It was proposed that the competent authority may initiate the procedure ex officio if it determines that the investment that had to be declared was not declared.
Fines are foreseen for non-reporting, submission of incorrect data and the realization of a transaction without prior approval.
In addition to fines, corrective measures were also proposed, including temporary suspension of management and voting rights, subsequent filing of an application, as well as the possibility of ordering the alienation of acquired shares or the return of the previous situation when it is determined that the investment represents an unacceptable risk.
What does this mean for investors
For most foreign investments, the new system should not mean an automatic ban or an additional obstacle to doing business. The document itself emphasizes that the goal is to keep Montenegro open and attractive for foreign investments, while control is introduced for a limited number of transactions in strategically sensitive areas.
For investors who plan to enter the energy, infrastructure, telecommunications, financial sector, media, technology, healthcare, food production or transactions related to strategic land, however, the preparation of the deal will in the future have to include checking whether the investment is subject to the new regime.
It will be particularly important to determine in advance the ownership structure, the ultimate beneficial owner and the source of capital, as well as to assess whether the target company has access to critical infrastructure, sensitive data or technologies.
For investors, therefore, the predictability of deadlines and clear application rules will be as important as the decision on approval itself.
The law has yet to be prepared
Although the model has already been adopted, investors should not yet treat it as a valid legal rule. On September 11, the Ministry of Economic Development announced a public call for the preparation of the Draft Bill, and on September 3, the Government instructed the Ministry to, in cooperation with the competent authorities, prepare the Bill on the Verification of Foreign Investments within 18 months.
Once the law is adopted, details such as the final list of sectors, procedures, deadlines for detailed verification and sanctions will be specified by the law and accompanying regulations.
The introduction of the system is part of the wider alignment of Montenegro with European rules on the verification of foreign investments. In June of this year, the European Union adopted the new Regulation 2026/1386, which changes the existing framework for the verification of foreign investments and additionally regulates the cooperation of the member states.
For Montenegro, according to the proposed model, the goal will be to shape the national system from the beginning so that it can fit into the European mechanism after joining the EU.
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Government of Montenegro
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Proposal for the establishment of an efficient mechanism for the verification of foreign investments
Law on verification of foreign investments
verification of foreign investments
foreign investments
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