Montenegro has adopted a new legal framework for electronic identification and trust services, establishing the basis for digital identity wallets, qualified electronic signatures and cross-border electronic transactions. The Law on Electronic Identification and Trust Services, published on July 16, 2026, aligns Montenegro’s legislation with the European Union’s updated eIDAS 2 framework and forms part of the country’s broader digital transformation efforts linked to EU accession. The law was published by the Ministry of Public Administration.
New Law Establishes Rules for Digital Trust Services
The legislation defines the legal status of electronic identities, signatures, corporate seals, electronic timestamps, registered digital delivery services, website authentication certificates and electronically verified attributes. For businesses, the framework creates conditions for digital execution of activities that currently require physical documentation, including company formation, contract signing, public procurement submissions, banking authorisations and verification of professional qualifications.
For public administration, the system is intended to support a transition from paper-based procedures and duplicated registers towards services based on verified electronic data.
Digital Identity Wallet Planned as Central Component
A key element of the new framework is the digital identity wallet, which is intended to provide citizens with a voluntary and free digital identity solution.
The wallet could store or verify attributes linked to documents and records such as:
- driving licences;
- health and social insurance information;
- diplomas;
- professional qualifications.
The system is designed around selective disclosure, allowing users to provide only the information required for a specific transaction. For example, a user could prove age without providing a complete identity document. The framework also envisages users being able to see which institutions accessed their information.
Businesses Expected to Use Digital Identification Services
The first commercial users are expected to include banks, insurers, telecommunications companies, utilities and professional-service providers. These sectors regularly perform customer identification procedures, collect documentation and maintain records confirming consent. Reliable electronic identification could reduce customer onboarding costs, improve fraud prevention and strengthen the legal value of electronically signed agreements.
Property transactions and corporate administration could also benefit from the new system, although broader digitalisation will depend on the ability of related systems to connect. Land registers, notarial procedures, company databases, tax systems and municipal platforms will need technical compatibility for the digital identity framework to provide practical value.
Implementation Requires Additional Institutions and Investment
The adoption of the law represents the beginning of a wider implementation process. Government planning includes the preparation of approximately 40 implementing bylaws. Montenegro’s Reform Agenda has reportedly allocated around €11.58 million over three years for the broader implementation programme.
The plans include establishing a new organisational unit within the Ministry of Public Administration, increasing the number of inspectors and strengthening capacities within the Cybersecurity Agency and the state CIRT. The implementation estimates include approximately €9.2 million expected by the end of 2027. Montenegro is targeting full participation in the European digital wallet environment around 2028.
Regional Recognition of Electronic Trust Services Expands
Montenegro is also developing regional connections for digital recognition. On July 17, 2026, the country signed an agreement with Kosovo on mutual recognition of qualified trust services and electronic-identification schemes. Similar arrangements already connect Montenegro with parts of the Western Balkans.
The agreement provides that electronic signatures and seals receive equivalent legal recognition in both markets. For companies operating regionally, mutual recognition could allow electronically signed documents created in one jurisdiction to be accepted in another without requiring parallel paper procedures.
Data Protection and System Integration Remain Key Challenges
The introduction of digital identity services requires more than creating a technical platform. Public institutions will need to ensure that digital procedures replace existing paper requirements rather than operate alongside them. The framework also raises requirements related to data minimisation, security certification, transaction records and procedures for resolving cases of compromised identities or improper data access.
Businesses are expected to review their internal systems before the digital wallet becomes fully operational.
Areas requiring preparation include:
- contracts;
- customer onboarding procedures;
- electronic archives;
- authorisation systems;
- data-retention policies.
Companies that adapt processes early will be able to reduce paper-based procedures, while organisations that only add electronic signatures to existing workflows may retain many of the current administrative costs. The new legislation provides Montenegro with the legal framework for an EU-compatible digital identity system, with practical implementation depending on the integration of public services, business systems and cross-border recognition mechanisms.
