Montenegro attracted approximately €414 million through its former economic-citizenship programme, including around €97 million directed towards northern tourism projects, particularly in Kolašin and Žabljak. Several developments continue to face infrastructure and administrative obstacles despite the capital invested.
The programme formally ended in December 2022, although some previously approved projects remain under development. Investment and Regional Development Minister Ernad Suljević said certain developments had exceeded their original investment commitments, while others remained constrained by property-related issues, administrative procedures and inadequate public infrastructure.
Approximately €1.835 million remains in designated accounts connected with unresolved applications under the former scheme. The overall €414 million programme figure and the €97 million allocated to northern tourism represent different categories and should not be treated as cumulative amounts.
Infrastructure Constraints in Northern Tourism
Kolašin and Žabljak have attracted hotel, residential and ski-related investments, supporting Montenegro’s efforts to expand tourism beyond the coastal summer season. Developments require reliable road access, electricity connections, water supply, wastewater systems and municipal services. Mountain tourism also depends on ski lifts, parking facilities, access roads and snow-management infrastructure.
Delays in public infrastructure can prevent completed hotels and residential developments from operating at their intended capacity, while developers continue to bear financing and maintenance costs.
These constraints directly affect opening schedules, occupancy, operating expenses, debt servicing and asset valuations. For banks financing hospitality projects, infrastructure delays can undermine financial projections even when construction has been completed.
Future Investment Incentives
The experience of the citizenship programme is relevant to Montenegro’s wider investment pipeline, which includes renewable energy, transport, environmental infrastructure and real estate. Large private projects depend on supporting public infrastructure, including electricity grid capacity for renewable energy, transport connections for logistics developments and wastewater systems for tourism and residential investments.
Future investment incentives could increasingly focus on measurable economic results rather than residency or citizenship benefits. Companies could receive support after demonstrating actual capital expenditure, completed facilities, employment creation, local procurement and tax compliance.
Such an approach would require stronger monitoring of delivered investments, jobs, tax contributions and local supply-chain effects. Transparent eligibility criteria could also improve predictability for investors and help ensure that public incentives support operational projects.
The model would also need to remain compatible with EU state-aid rules as Montenegro advances towards membership. The former programme demonstrated that attracting private capital is only one part of investment development. Roads, utilities and public services must also be delivered to ensure that tourism projects become operational and generate sustainable business activity.
