Banks in Montenegro - an overview and tips for foreigners
Montenegro, a small country on the Adriatic coast, has established itself as an attractive destination for tourists, investors and expats in recent years. Whether as a part-time resident or for long-term stays, many are faced with the question of how the banking system works in Montenegro. In this article, we take a closer look at the banks in Montenegro, how to open an account as a foreigner and what challenges there are.
Banks in Montenegro – An overview
Montenegro has a well-developed banking system that has grown steadily over the years. The most important banks in Montenegro include
- Crnogorska Komercijalna Banka (CKB) – One of the largest banks in the country and part of the Hungarian OTP Group.
- Erste Bank Montenegro – part of the Austrian Erste Group and one of the internationally renowned banks in Montenegro.
- NLB Banka – This bank is part of Nova Ljubljanska Banka from Slovenia and is also an important institution in Montenegro.
- Hipotekarna Banka – Another domestic bank specializing primarily in mortgages and loans.
- Addiko Bank – A member of the Addiko Group, which operates in several countries in the Balkans.
- Prva Banka – The oldest bank in Montenegro with strong local roots.
- Ziraat Bank – A Turkish bank that also has a branch in Montenegro and focuses primarily on trade with Turkey.
- Adriatic Bank
These banks all offer basic services such as account management, online banking and loans, but differ in their special offers and conditions.
Opening an account for foreigners
Foreigners living in Montenegro or planning to spend a longer period of time there will sooner or later be faced with the question of how to open a bank account. It is possible for foreigners to open an account with most banks in Montenegro. However, there is one decisive hurdle: As a rule, a residence permit is required. Without this permit, it is currently very difficult to open an account.
Requirements for opening an account
The requirements for opening an account vary depending on the bank, but some basic documents that are usually required include
- A valid residence permit (residence permit)
- A valid passport
- An address in Montenegro/ a German registration address and proof of this on the identity card or a registration certificate
- Sometimes also proof of income or confirmation from the employer
- Employment contract, if the account is created to receive income from a job
- Company documents, company stamp and current extract from the commercial register (not older than 1 month) when opening company accounts
Once you present these documents, opening an account should be relatively straightforward. However, it is important to note that language can often be an obstacle, as not all bank employees in Montenegro speak English or German. We usually accompany our customers to the appointment to open an account at the bank and prepare everything beforehand so that everything runs smoothly for you.
Account types
Most banks in Montenegro offer different account types depending on the customer’s needs. These include:
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Business accounts: These are intended for companies and offer special functions for business payment transactions. They are ideal for companies that operate or trade in Montenegro and need to carry out regular financial transactions.
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Private accounts: These accounts are designed for private individuals who need an account for personal use, whether for everyday payments or savings. They usually offer the most basic banking services such as transfers, direct debits and the use of credit or debit cards.
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International accounts: These accounts facilitate the international transfer of money and make transfers abroad possible. They are particularly useful for people who regularly send or receive money from Montenegro abroad, for example for business activities or family support.
You can have both a private international account and a business international account set up.
The banks in Montenegro offer corresponding credit or debit cards for all of these account types, which can be used for both national and international payment transactions. The account holder also has access to online banking, although, as already mentioned, one should not expect such sophisticated systems as in Germany. Nevertheless, basic functions such as transfers, account balance inquiries and payment activities are generally available via online banking.
Online banking in Montenegro
Another important aspect of banking in Montenegro is online banking. Most banks in Montenegro nowadays offer some kind of online banking or mobile banking. However, foreigners should not have too high expectations, especially if they come from countries like Germany, where online banking services are very sophisticated and user-friendly.
Differences to German online banking
While you often have a seamless and fast online banking experience in Germany, it can be a little different in Montenegro. The platforms are often less intuitive and certain features may be missing or limited. Another issue is that the user interfaces are usually in Montenegrin, which can create challenges for non-native customers. Some banks do offer English versions, but these are not always fully translated.
Loans for foreigners – a challenge
One of the biggest problems that foreigners can encounter in Montenegro is access to credit. Although many banks in Montenegro offer various credit products, it is usually difficult or impossible for foreigners to obtain a loan on favorable terms.
Loans are more likely to be granted to companies
When banks in Montenegro grant loans to foreigners, it is mainly to companies and less to individuals. However, these companies must meet very strict requirements in order to obtain a loan. As a rule, the banks expect the company to have been in the black for at least five years and to provide clear evidence that it is able to repay both the loan amount and the interest. This means that it is extremely difficult for start-ups or new companies in Montenegro to obtain bank financing.
Loans are less common in Montenegro
Another aspect to consider is that loans are generally less common in Montenegro than in many Western countries. Even locals do not take out loans as standard, as is the case in Germany, for example, whether for a washing machine, a car or even a house. In Montenegro, it is common to make large purchases without external financing.
This difference is particularly evident in the real estate sector. While mortgage loans for building or buying a house are the norm in Germany, Montenegrins often build their houses in stages over many years. As soon as they have saved enough money, another part of the house is built. This process can take several years or even decades, depending on the funds available.
Montenegro and SEPA
Montenegro will join the SEPA (Single Euro Payments Area) on January 1, 2025, which will fundamentally change payment transactions in the country. Currently, international euro payments are time-consuming and involve higher fees. With SEPA, Montenegro will benefit from faster, cheaper and standardized payment processes. The SEPA Direct Debit Scheme in particular will make it possible to process regular payments such as rent or bills automatically, which will make things considerably easier for both companies and private individuals.
Conclusion
The banking system in Montenegro has evolved in recent years and now offers a wide range of services. For foreigners who want to live or invest in Montenegro, there are several options for opening an account, but usually only with a residence permit. Banks in Montenegro do offer online banking, but you should not expect systems as sophisticated as those in Germany.
Opening an account is possible in most cases, but it is more complicated if you do not have a residence permit. Obtaining loans is a challenge for foreigners and often the conditions are less favorable than for locals. In many cases, banks tend to lend to companies, and these usually have to prove that they are profitable for several years. In addition, the concept of loans is generally less common in Montenegro, and even locals rarely take out loans as they do in Western countries.
If you are planning to stay or invest in Montenegro for the long term, you should familiarize yourself with the local banks early on and find out about the various offers and requirements. This way you can ensure that you get the best out of banking in Montenegro.
