Montenegro banks - what you should know before opening a bank account

Montenegro banks offer excellent conditions for both its residents and foreign citizens, and having a Montenegro bank account is necessary for living and working in Montenegro.

Whether you intend to move to Montenegro or do business there, Montenegrin bank accounts allow you to make financial transactions within the country (e.g. make purchases and pay bills and taxes), withdraw money, and receive money from as transfer it abroad.

In this article will discuss the Montenegrin banking system and the Montenegro banks and give you information on the process and the documents needed to open a bank account in Montenegro.

Montenegro banking system - general information

The banking sector in Montenegro operates under market terms and is fully privatized. Currently, 11 private banks operate in Montenegro, all of which are under the jurisdiction of the Central Bank of Montenegro. Most of them belong to international banking chains.

The Central Bank of Montenegro has the obligation to control the banking system, regulate the process of establishing banks and approve the operations which banks can perform.

During the last couple of years, the Montenegrin banking sector has experienced stabilization during the last couple of years. In addition, the regulation of the banking sector has been greatly improved by adopting a new set of laws and amending the existing ones.

The most notable change is adopting The Law on the Protection of Deposits and establishing a deposit protection fund in the case of bankruptcy for all bank deposits in Montenegro.

All of these changes have had a significant influence on Montenegro's financial system and the increased trust in the banking sector in the last couple of years. It is then no wonder that Montenegro has been an attractive destination for foreign investments for years.

What are the advantages of opening a bank account in Montenegro?

There are several advantages of opening a bank account in Montenegro. Whether you intend on spending only a few months in this beautiful country, or you intend to apply for a residence permit or do business in Montenegro, you will need to have your financial resources at your disposal.

You have to have a national account opened in one of the Montenegrin banks in order to make financial transactions within the country. This is going to be necessary for paying bills and taxes. Furthermore, a national account is needed to withdraw cash.

Luckily, the process of opening a bank account for foreign residents is swift and easy, and the monthly fees for the maintenance of an account are relatively low (around 2 euros) in all Montenegrin banks. In addition, Montenegrin banks also offer online and mobile banking services.

By opening a bank account in the country where the transactions will be made, you will avoid paying foreign transaction fees, that is, surcharges for making a financial transaction that passes through a foreign bank or is in a different currency.

Is having a bank account in Montenegro necessary for a residence permit?

The answer is yes ‒ if you wish to obtain a residence permit in Montenegro, you will have to open a bank account in one of the banks operating in Montenegro.

That is because one of the documents needed for the residence permit in Montenegro is the proof of a 3.650 EUR deposit into a bank in Montenegro. That means that if you intend on obtaining a residence permit in Montenegro, you will have to open a bank account to which you will transfer your financial assets.

A deposit protection fund protects all bank deposits

Since 2004, Montenegro has had a deposit protection fund for deposits in all banks in Montenegro, including the deposits of residents and non-residents and private individuals and legal entities.

Namely, in the event of a bank bankruptcy, all natural and legal persons are insured with compensation of up to 50,000 euros. The amount of the compensation is to be determined by adding up all of the deposits of a depositor and then deducting all of his due liabilities to the bank.

It is also important to mention that the Montenegrin banking system has a strict privacy policy ‒ it is forbidden by law to share information about their clients.

All of the changes in the Montenegrin banking system made it very favourable for its clients. Together with a stable currency, favourable tax policy and blooming tourism and industry, these changes are the key factors to an increasing number of foreign investors interested in taking part in the Citizenship by Investment Program.

Montenegro banks - How to choose the right bank for you

There are a number of Montenegro banks, but if you're looking for the best bank in Montenegro, your choice is going to depend mainly on the services they offer, as well as your needs and expectations.

The best advice is to focus on the type of account you want to open and whether you will be using it for personal or business purposes.

The number of a bank's branch offices and ATMs is also important because their accessibility will be of great importance when you want to withdraw cash or have a business that must be dealt with on-site. Here is the list of banks in Montenegro:

Montenegro banks based in Montenegro are:

Hipotekarna banka AD Podgorica
Lovćen banka AD Podgorica
Prva banka Crne Gore AD Podgorica (First Bank of Montenegro)
Universal Capital Bank AD Podgorica

Banks in Montenegro that belong to international banking chains are:

Addiko Bank AD Podgorica
Adriatic Bank AD Podgorica
Crnogorska komercijalna banka AD Podgorica (also know as CKB Montenegro and CKB Bank Montenegro)
ERSTE Bank AD Podgorica
NLB Banka AD Podgorica
Zapad banka AD Podgorica
ZIRAAT Bank Montenegro AD Podgorica

We advise you to choose the one whose services best suit your needs and desires. Whichever bank you prefer, you can rest assured that The Law will secure your deposits on the Protection of Deposits. Also, your personal information is going to be protected from the access of third parties by the privacy policy.

Opening a personal bank account - everything you need to know

Opening a personal bank account in Montenegro is not complicated and is available for all foreign residents, both EU and non-EU residents. Furthermore, having a Montenegrin bank account will significantly ease your stay in Montenegro.

Different types of bank accounts in Montenegro banks

When opening a bank account in Montenegrin banks, there are two types of accounts you can choose from, both of which offer different services.

Depending on the type of transaction you will be making, there are two types of accounts ‒ national and international accounts.

National accounts are used to make payments within the country, e.g., pay bills, taxes, and fines. National accounts support only the domestic currency, which is in Montenegro's case, the euro.

International accounts are used for moving financial assets in and out of the country, that is, to receive money from abroad or transfer money abroad. International accounts support foreign currencies. However, to be able to pay bills and withdraw cash, you will need to transfer money to your national account.

Luckily, most Montenegrin banks offer the service of transferring money to domestic currency free of charge.

Which documents are needed for opening a personal bank account?

In the past, everyone could open a bank account in Montenegro, even via online call. However, the government has introduced more strict rules concerning opening a bank account in Montenegro to prevent this privilege abuse.

Nowadays, you have to visit the local branch in person in order to open an account. However, the procedure for individuals opening a bank account is not complicated.

But before going into details about the needed documentation, it is important to mention that as a non-resident, you have to have a valid reason for opening a bank account in Montenegro, such as:

Application for residence permission
employment
property purchase or
if you are married or closely related to a Montenegrin citizen or a foreign citizen with a permanent residence.

In CKB, Addiko, Erste and Prva Banka - The documents needed for opening a bank account are:

a valid passport
a document that confirms your tie to Montenegro (e.g. residence permit, employment contract or other proof of business in Montenegro, proof of ownership over a property, marriage certificate or birth certificate)
a filled application form that you will receive in the bank of your choice

The procedure and the needed documents are the same for all non-residents, both EU and non-EU members.

However, some banks, like NLB bank, require not only one document that confirms your tie to Montenegro, but several more such as:

proof of employment
proof for residence
registration of residence

Banks also reserve the right to ask for additional documentation, so it's best to contact the local branch via phone or email or visit their site.

Having a personal bank account in Montenegro - How much does it cost?

Aside from it being a very easy process, having a personal bank account in Montenegro is rather affordable. Opening an account is free, as well as transferring money from international to national accounts. Monthly maintenance fees are quite low ‒ usually just a couple of euros.

Bank charges for money transfers in Montenegro

When it comes to bank charges for money transfers in Montenegro, they depend on the inflow amount, as well as the price list of the bank in question.

Bank transfer charges to and from abroad to an individual’s private account in Montenegro are as follows:

#1 CKB bank

FX inflows (loro remittances)

The fees charged by the Bank to receive the funds from abroad depend on the inflow amount, and they are as follows:

amounts up to EUR 3,000 - 1% of the amount
amounts from EUR 3,000 to 50,000 - 0.5% of the amount
amounts over EUR 50,000 - 0.3% of the amount

International payments (nostro remittances):

for amounts up to EUR 1,500 - 1% of the amount (minimum EUR 9)
for amounts from EUR 1,500 to EUR 3,000 - 1% of the amount
for amounts from EUR 3,000 to EUR 50,000 - 1% of the amount
for amounts over EUR 50,000 - 0.5% of the amount

If the client wants to bear the costs of the final user of funds (option “OUR”), besides standard commission he has to pay costs of additional commission as follows:

from EUR 1 to EUR 4999 - EUR 10.00
from EUR 4999 to EUR 12500 - EUR 15.00
from EUR 12500 and more - EUR 20.00