After ending its economic citizenship programme, Montenegro is entering a new phase in its bid to attract globally mobile capital in an increasingly competitive and fragmented world. Investors are no longer looking solely for tax advantages, but also for stable jurisdictions, long-term security, and quality of life as part of a broader risk management strategy. Against this backdrop, the question is no longer whether Montenegro is attractive, but how to redefine its investment model. In an interview with Bankar, Stefan Kraus Chief Operating Officer at Henley & Partners discusses new trends in investment migration and Montenegro’s position in Europe. His responses suggest that the era of “one-off solutions” has come to an end, and that the advantage now lies with countries that offer a sustainable and strategic framework for capital and talent.

Bankar: Following the closure of Montenegro’s citizenship-by-investment program in 2022, how do you currently assess the country’s competitiveness in attracting globally mobile capital compared to emerging hubs such as the UAE or Singapore?

Montenegro’s Citizenship-by-Investment Program, active from 2019 to 2022, generated approximately EUR 500 million in foreign direct investment and played a meaningful role in supporting national development priorities. This included infrastructure development in the northern region, funding initiatives aimed at innovation and talent growth, and attracting internationally recognized hospitality brands. Its contribution was particularly relevant during the Covid and post-Covid period, helping to sustain economic activity at a critical time. Importantly, the program also facilitated connections with globally successful individuals, some of whom have since established or are considering further business activities in the country, contributing to longer-term economic engagement.

Established and clearly defined pathways for international investors play an important role in attracting globally mobile capital, as they provide predictability, transparency, and a structured framework for long-term planning. In today’s volatile environment, where investors are increasingly focused on stability and optionality, jurisdictions that offer clarity around access, rights, and obligations tend to be well positioned to compete internationally. At the same time, competitiveness is not determined by a single program or pathway, but rather by the overall strength of a jurisdiction’s ecosystem — including regulatory stability, long-term economic prospects, and lifestyle appeal.

In this respect, Montenegro continues to offer a compelling proposition, particularly for investors seeking a foothold aligned with Europe. The country benefits from its ongoing EU accession process, which signals regulatory convergence and long-term policy direction, alongside a business-friendly environment and competitive tax framework. Combined with its established reputation as a high-quality lifestyle destination, particularly along the Adriatic coast, Montenegro remains attractive to globally mobile individuals looking for both investment potential and quality of life. At the same time, major international hubs such as the UAE and Singapore continue to perform strongly due to their roles as global centers for business, capital, and connectivity, reflecting a broader trend in which different jurisdictions serve distinct functions within increasingly diversified global portfolios.

Bankar: To what extent are current geopolitical tensions (including wars, sanctions, and tax reforms such as the abolition of the UK’s non-dom regime) reshaping the profile of investors interested in the Balkans, and does Montenegro still feature in their “Plan B” strategies?

The recent escalation of conflict in the Middle East, alongside ongoing tensions elsewhere, has acted as a clear reminder to international investors of the importance of spreading risk across jurisdictions. Rather than triggering immediate relocation, it is reinforcing a broader structural shift toward geographic diversification, with high-net-worth individuals increasingly focused on building optionality across multiple regions, including Europe.

For international investors and their advisers, this environment is accelerating a more active approach to managing jurisdictional exposure. As risk becomes more dynamic and unevenly distributed, investors are rebalancing portfolios across countries, reducing exposure to geopolitical flashpoints, and prioritizing access to stable, well-governed markets. The concept of a “safe haven” is also evolving — no longer fixed, but relative and increasingly strategic, depending on individual circumstances and long-term objectives.

Within this context, the region of Southeast Europe — and Montenegro in particular — continue to feature as part of a wider diversification strategy. Interest is not driven by a single event, but by the country’s positioning within Europe, its lifestyle appeal, and its EU accession trajectory. Rather than serving as a standalone “Plan B,” Montenegro is increasingly considered one component within a broader, multi-jurisdictional approach to mobility and capital allocation in a more fragmented global risk environment.

Bankar:  Do you see potential for redefining Montenegro’s investment migration model—from a “citizenship sale” approach toward more sustainable, long-term residency and investment frameworks that align with what you describe as ‘strategic mobility portfolios’?

Globally, investment migration is evolving, with a growing trend toward less transactional models that place greater emphasis on long-term alignment between investors and host countries. Governments are increasingly focused on attracting individuals who contribute not only capital, but also skills, networks, and sustained economic engagement. In this context, discretionary “citizenship by merit” frameworks are gaining prominence in parts of Europe and beyond as credible, contribution-based approaches that prioritize exceptional value creation alongside robust governance and due diligence standards.

At the same time, the concept of “strategic mobility portfolios” has become more relevant. Investors are no longer seeking a single solution, but rather a combination of jurisdictions that together provide flexibility, resilience, and access to opportunity. Residence programs, alongside established investment migration pathways, continue to play a central role in this ecosystem, encouraging deeper ties to a country through physical presence, business activity, and long-term planning.

For Montenegro, this creates an opportunity to further strengthen its positioning as a high-quality destination within Europe. By focusing on sustainable investment frameworks and aligning with broader economic priorities, the country can continue to attract globally mobile individuals interested in long-term value creation, while reinforcing its reputation as a stable and forward-looking market within an increasingly competitive and evolving global landscape.

Bankar: How have increasing regulatory pressures from the European Union on citizenship-by-investment programs affected the perception of Montenegro as a destination for capital and high-net-worth individuals?

Increased regulatory attention from the European Union has undoubtedly influenced the investment migration landscape, but it has also contributed to raising standards across the industry. Greater emphasis on transparency, governance, and due diligence is strengthening the credibility of well-managed programs and aligning them more closely with broader financial and regulatory frameworks. This evolution should be viewed as part of the natural maturation of a globally significant sector.

It is important to recognize that investment migration represents a very small proportion of overall naturalizations in Europe, yet it has delivered meaningful economic benefits, particularly for smaller economies. Robust due diligence processes and risk management frameworks are already central to leading programs, often exceeding those applied in other areas of migration. As such, the focus on regulation is helping to reinforce best practices rather than fundamentally altering the role of investment migration.

For Montenegro, its continued alignment with EU standards and its accession trajectory are likely to support a positive perception among investors. Regulatory clarity and institutional stability are key factors in long-term decision-making, and progress in these areas enhances the country’s attractiveness as a destination for both capital and talent within a European context.

Bankar: Considering Montenegro as a small economy in the EU accession process, what specific policies or instruments would you recommend to attract “smart capital,” rather than purely passive investment, in today’s highly competitive global environment for wealthy migrants?

In today’s global environment, competition is increasingly focused on attracting “smart capital” — investment that brings not only financial resources, but also expertise, innovation, and long-term economic contribution. The most successful jurisdictions are those that create ecosystems where investors can actively participate in growth sectors and integrate into the broader economy. This requires a strategic approach that goes beyond passive investment models.

For Montenegro, this could include prioritizing sectors such as sustainable tourism, renewable energy, and the digital economy, where the country already has natural advantages or strong growth potential. Encouraging investment linked to business creation, employment generation, and knowledge transfer can help maximize the long-term impact of incoming capital. Public–private partnerships and targeted incentives can further support this transition toward more productive forms of investment.

At the same time, maintaining a clear and predictable regulatory framework aligned with European standards will be essential in attracting globally mobile individuals. Combined with its strong lifestyle offering, safety, and long-term development trajectory, Montenegro is well positioned to appeal to investors seeking both opportunity and stability. In this sense, its competitive advantage lies in combining quality of life with a focused, forward-looking investment strategy.