Montenegro is preparing to tighten controls over foreign employment as businesses in tourism, hospitality and construction increasingly rely on workers from abroad. The proposed permit reform is intended to strengthen tax and employment controls and bring the system closer to EU standards, but employers warn that additional approval requirements could slow recruitment.
Employment Agency to Join Permit Process
Under the model approved by the government in July, the Ministry of Interior would continue receiving applications and issuing temporary residence and work permits. The main change would require the Employment Agency of Montenegro (ZZZCG) to give its consent before a permit is issued. The agency would assess labour-market conditions, employer requirements and possible restrictions, including quotas and employment bans. The proposed system would also strengthen information-sharing between the Tax Administration, Health Insurance Fund and Labour Inspectorate, allowing authorities to compare immigration, employment, payroll and compliance data.
Foreign-Worker Permits Reach Record Level
Montenegro issued 20,580 temporary residence and work permits in 2021, increasing to 29,319 in 2022 and 38,943 in 2023. The number declined slightly to 38,019 in 2024, before reaching a record 40,567 in 2025. The 2025 total was almost 97% higher than in 2021. Of last year’s permits, 27,689 were issued within the quota system and 12,878 outside the quota.
Foreign workers were concentrated in the main economic centres. Podgorica accounted for 13,568 permits, followed by Budva with 10,318, Herceg Novi with 3,889, Bar with 3,807, Tivat with 2,767, Kotor with 2,102 and Ulcinj with 1,232. These seven municipalities accounted for almost 93% of all permits. By nationality, Turkey was the largest source with 10,346 permits, or 25.5%, followed by Serbia with 8,148, Russia with 7,429, Azerbaijan with 2,513, Albania with 2,098 and Bosnia and Herzegovina with 1,902. Together, these six countries represented almost 80% of permits.
Tourism and Construction Face High Demand
Montenegro recorded an average of 277,300 employed people and 33,100 unemployed people in 2025, corresponding to an unemployment rate of 10.7%. The 40,567 foreign-worker permits issued during the year were equivalent to roughly 14.6% of the average employed population, although the two figures measure different things because permits represent an annual administrative flow rather than the number of foreign workers employed simultaneously. Economist Mirza Krnić has identified shortages in services, tourism, hospitality and construction, while employers have become increasingly dependent on foreign workers.
For 2026, Montenegro established a foreign-worker quota of 28,988 permits. This includes 21,668 permits for regular employment and 2,320 for seasonal employment, with another 5,000 available for additional allocation depending on labour-market requirements. The largest allocations are 6,150 permits for accommodation and food services, 6,000 for construction and 5,268 for other services. Wholesale and retail trade received 1,453, professional and technical activities 1,200, information and communications 878, and manufacturing 527.
Employers Raise Administrative Concerns
The Montenegrin Employers Federation (UPCG) has raised concerns that involving the Employment Agency could create an additional administrative barrier for companies already struggling to recruit. The practical effect will depend on how quickly ZZZCG can process applications. A short delay may have limited consequences, while delays of several weeks during April, May or June could affect hotels, restaurants and construction companies preparing for the peak season.
The government’s reform also has a fiscal objective. Employers must conclude employment contracts and register foreign workers for compulsory social insurance after permits are issued. An official calculation based on approximately 40,000 permits and minimum monthly public obligations of around €120 per worker indicates potential public revenue of approximately €4.8 million per month, or almost €60 million annually, if all workers are properly registered and payments are made. The authorities have also identified cases where residence arrangements were not matched by genuine economic activity. Checks by the Ministry of Interior, Police Directorate and Tax Administration identified more than 1,000 foreign nationals, mainly company owners and executive directors, whose businesses recorded no fiscalised inflows or outflows during the examined period in 2025.
Enforcement and Labour Availability
Stronger enforcement could improve conditions for companies that formally register employees and pay wages, taxes and social contributions, particularly where competitors rely on undeclared labour. At the same time, the Employment Agency could face a significant administrative workload if it becomes responsible for approving tens of thousands of applications. Montenegro issued 40,567 permits in 2025, creating substantial processing requirements ahead of the tourist season.
The wider labour market also presents a structural mismatch. Montenegro has unemployment above 10% while businesses import tens of thousands of workers, reflecting differences in skills, location, wages, seasonality and willingness to relocate. Employers need workers in municipalities including Budva, Tivat, Kotor and Herceg Novi, while registered unemployed workers may not have the required qualifications or willingness to move. Accommodation costs along the coast can also create difficulties for lower-paid seasonal workers.
The labour market could face additional pressure as Montenegro moves towards EU membership, with stronger labour mobility potentially creating more opportunities for Montenegrin citizens to work elsewhere in Europe. The effectiveness of the proposed system will therefore depend heavily on processing times, digital information exchange, clear approval criteria and predictable deadlines, alongside stronger checks on employment and tax compliance. With more than 40,000 foreign-worker permits issued in 2025, foreign recruitment has become an important part of Montenegro’s tourism, hospitality, services and construction sectors, placing greater importance on a permit system that can strengthen enforcement without slowing legitimate recruitment.
