Residence through your own company: how countries check the business is real

In brief

• A residence permit through a company rests on the company itself. If it does not operate, the ground for residence disappears, even if the card is still valid.
• Montenegro: an owner or director with a stake above 51% has the permit renewed on proof of taxes and contributions of at least EUR 5,000 a year.
• Serbia: for self-employment the foreigner must be the sole or controlling member, and the conditions are checked by the National Employment Service. Registering a firm alone does not guarantee a permit.
• Spain: the entrepreneur permit is issued for 3 years on a favourable report from the state company ENISA, with renewal for 2 years if the conditions are still met.
• Cyprus: a company of foreign interests must have a separate office, key staff earn at least EUR 2,500 a month, and within 5 years 30% of staff must be Cypriot and EU citizens.
• UAE: a partner visa rests on a valid licence, the investor golden visa on a stake of at least AED 2 million confirmed by an auditor or on tax of at least AED 250,000 a year.
• Portugal: at renewal you show that there are no debts to the tax office and social security and that the business is actually carried on.

Why countries are tightening checks

A director's or founder's residence permit works differently from an investor's or a financially independent person's. An investor shows the investment once, a financially independent person shows income or savings. A company owner receives status as someone who works in the country: builds a business, pays taxes, sometimes hires people. So the state is entitled to expect that the work actually exists. If the company exists only on paper, the permit becomes a purchase of status for the price of registration and bookkeeping, and that is exactly what migration services try to cut off.

Hence the general shift of recent years. Renewal used to require little more than a register extract and a certificate of no debts. Now laws state exactly what must be shown: the amount of taxes paid, the salary level, an office, the share of local staff. Montenegro is the most recent example. How the company route itself works there is described on the page on residence for a company director in Montenegro, and the section on business residence compares such programmes with each other.

For an owner this means something simple. You prepare not for the application but for the renewal. The first permit is relatively easy to obtain, and the question of whether the company works is asked a year later, when taxes, contributions and account movements are already visible. The term substance, meaning a company's real presence, used to be a tax concept and is now increasingly a migration one too.

What this means for you. A company for residence is not a formality done once. It has to be run so that a year later there is something to show the migration service.

What exactly is checked

The set of checks differs between countries, but there are only a few questions. The first is taxes and contributions. This is the most objective indicator: amounts paid are visible to the tax office and the social insurance fund and cannot be drawn into a presentation. Montenegro has made this indicator the main condition for renewal, Portugal requires proof of no debts, and the UAE accepts a tax authority letter on the amount of tax paid for the golden visa.

The second question is the director's salary. If you are employed in your own company, you are an employee with an employment contract and contributions are paid for you. Cyprus has set a minimum salary for key staff outright; in Montenegro the salary drives the amount of taxes and contributions and therefore the renewal. The third question is staff. Cyprus requires that over time part of the workforce be Cypriot and EU citizens. The fourth is the office: in Cyprus it must be separate from a home. The fifth is money in the account and the accounts: the UAE asks for a company bank statement and an auditor's report for the golden visa, and Spain assesses a business plan with its financing.

The last question is timing. Almost everywhere renewal is filed within a set window before expiry, and lateness in itself becomes a problem. Below is a country comparison, followed by a detailed look at each.

Montenegro: taxes and contributions of EUR 5,000 a year

The basis is the Law on Foreigners and the amendments adopted by parliament on 31 December 2025. They entered into force on the eighth day after publication in the official gazette. For company owners the key rule is in the new wording of Article 70. A temporary residence and work permit for entrepreneurs and executive directors of companies in which they are sole owners or own more than 51% of the capital may be extended as long as the general conditions of Article 43 are met and there is proof of taxes and contributions paid of at least EUR 5,000 a year.

What this means in practice. A company that pays no salary to its director and carries on no business will not reach that amount. EUR 5,000 a year is taxes and contributions, not turnover and not profit. It is made up of mandatory payments that the company and you have actually transferred. The requirement does not apply to citizens of EU countries, Iceland, Liechtenstein, Norway and Switzerland, or to their family members.

There are other rules worth knowing. Within 24 hours of a residence and work permit being issued, the employer must conclude an employment contract with the foreigner and register them for compulsory social insurance. If the foreigner does not start work, the employer notifies the ministry within three days so the permit can be cancelled. For an owner who is their own employer this means one thing: the contract and the registration with the funds are done at once, not later.

A renewal application is filed no earlier than 60 and no later than 30 days before the permit expires. It must be accompanied by proof of taxes and contributions paid for the entire term of the previous permit. Applications can now also be filed electronically; in that case, within ten days of entering the country you must attend the ministry for a photograph, fingerprints and signature. An ordinary work permit is issued for up to one year, and with a full-time contract it can be extended for up to two years.

A word on the future. In October 2026 the government sent parliament a new Law on Foreigners that will apply from the day Montenegro joins the EU; what it says about residence through property is covered in our news on the new law. The current rules for companies are described above. A general overview of the country is in the section on Montenegro, and practical steps are in the article on residence in Montenegro.

What this means for you. If your Montenegrin permit rests on a company, calculate in advance how much tax and contributions it will pay in a year. Less than EUR 5,000 is a direct risk of refusal at renewal.

Serbia: self-employment and the single permit

Since 2024 Serbia has had a single permit for temporary residence and work. It is issued by the Ministry of the Interior, and whether the conditions for work are met is checked by the National Employment Service. The Law on Employment of Foreigners as amended in 2023 distinguishes employment, special cases and self-employment. Self-employment is work by a foreigner in a company or another form of activity in which the foreigner is the sole or controlling member.

Hence the first rule: the stake matters. A founder with a controlling stake applies as self-employed, a director without a stake as an employee, to whom different conditions apply. The company is registered with the Business Registers Agency, and your details as a member must be in the register before the application is filed. The state portal for foreigners warns plainly that registering a company alone does not guarantee a visa or permit.

According to the official portal, the single permit is issued for up to three years. A renewal application can be filed until the current permit expires, and a decision is made within 15 days of a complete application. Changing the ground, for example from employment to self-employment, while the permit is valid is possible only with the consent of the National Employment Service, which must be requested within that period. A foreigner's work ends when the single permit expires.

What this means for an owner. Serbia has no fixed tax amount as Montenegro does, but the self-employment conditions are checked at every application. A company that carries on no business and pays no contributions for its founder gives weak grounds. How the rules of Serbia and Montenegro differ is explained in the article on Serbia and Montenegro, and details of residence are in the article on residence in Serbia.

Spain: the entrepreneur permit under Law 14/2013

In Spain residence for business activity is governed by Law 14/2013 on support for entrepreneurs, as amended by the 2022 startup law. The permit is issued for 3 years and is valid throughout the country. When it expires it is renewed for 2 years, and after 5 years permanent residence can be obtained. The application is filed electronically with the Large Companies and Strategic Groups Unit (UGE-CE), in person or through a representative.

The main check here comes before the permit is granted. An activity counts as entrepreneurial if it is innovative or of special economic interest for Spain and has received a favourable report from the state company ENISA. The Unit requests the report itself, and the deadline for it is ten working days. The assessment looks at the applicant's professional profile and involvement in the project, a business plan describing the product, the investment required and sources of financing, and what the project adds to the country's economy.

General conditions: no criminal record, health insurance, and sufficient resources for yourself and your family during residence. A decision is made within 20 days of electronic filing; if there is no answer, the permit is deemed granted. Renewal is for 2 years provided the circumstances on which the permit was granted are maintained. The Directorate-General for Migration may request reports to confirm this. Filing a renewal application extends the permit until a decision, including where it is filed within 90 days after expiry, but in that case sanction proceedings are possible.

What this means. Renewal in Spain needs not a formal company but a project developing as described in the business plan: revenue or financing, costs, people, taxes and contributions paid. If the business plan has not moved in three years, it is hard to show that the conditions are maintained. An overview of the country is in the section on Spain.

What this means for you. In Spain the business plan is a promise that will be checked at renewal. Write it so that three years later you can show it was delivered.

Cyprus: the company of foreign interests

In Cyprus owners and key staff from third countries most often work through a company of foreign interests. The company first registers with the Business Support Center at the Ministry of Energy, Commerce and Industry. The Center checks eligibility and issues written confirmation of entry in the register of companies of foreign interests, on the basis of which the Migration Department issues residence and work permits.

One condition of the government strategy under which the mechanism operates is that the company must have an independent office in Cyprus in suitable premises, separate from any private residence or other office. Permits require certificates of registration from the Registrar of Companies and the Tax Department. This is a direct reality check: an office at a corporate services firm's address or in the director's flat does not meet the condition. How a legal address differs from a working office is explained by the term registered office.

Staff requirements. A key, highly paid employee earns at least EUR 2,500 gross a month, has a relevant degree or at least two years' experience in a similar position, and an employment contract of at least two years; even if a one-year permit is requested, the contract and stamp duty cover two years. Those already working as key personnel on a salary of at least EUR 2,000 may renew with the same employer without a pay rise until 31 December 2026. From 2027 this transitional threshold no longer applies.

The share of local staff. Companies commit that within five years of joining the mechanism 30% of staff will be Cypriot and EU citizens; the maximum share of third-country staff is 70%. Third-country support staff earning below EUR 2,500 are hired with a labour market test and a contract certified by the Department of Labour. Companies entered in the register before 2022 update their information with the Migration Department every year. Under the strategy, permits are issued for up to three years. Spouses of highly paid staff gain access to the labour market.

How to open a company in Cyprus is covered in the article on company formation in Cyprus and on the service page for registering a Cyprus company; a general overview is in the section on Cyprus.

What this means for you. If you are key personnel on a salary between EUR 2,000 and 2,500, decide before the end of 2026 how the company will pay you at least EUR 2,500.

UAE: licence, establishment card and the golden visa

In the Emirates an owner's residence rests on the company licence. The green visa for a partner or investor allows residence for up to five years without a sponsor and is renewed on the same terms as when issued. It requires a passport valid for at least six months, a memorandum of association or investment contract, a trade licence and the approval of the competent authorities to carry on the activity. The establishment card, without which a company cannot process visas, is renewed only with a valid trade licence, and late renewal is fined AED 100 a month, up to AED 1,000.

The 10-year investor golden visa requires more. The investor's or partner's stake in the company must be worth at least AED 2 million, confirmed by a certified financial report from an accredited UAE audit firm. The document list includes a valid licence with a partners' appendix, a company bank statement, and tax registration with receipts for the last year. There is another route: a Federal Tax Authority letter confirming that the investor is a partner in one or more companies paying tax of at least AED 250,000 a year. Renewal requires the same conditions to be met.

The tax side. For financial years starting on or after 1 June 2023 the UAE levies corporate tax of 9% on taxable profit above AED 375,000, and companies register with the Federal Tax Authority. For an owner this means that accounts and tax registration are now part of the standard package, not an option. The differences between a free zone and a mainland company are explained in the article on free zone and mainland, the registration procedure in the article on company registration in Dubai and the service for company registration in the UAE. The term economic substance explains how the reality of companies used to be checked in the Emirates.

Portugal: the D2 visa and the renewal check

In Portugal residence for independent activity and entrepreneurs is governed by Foreigners Law 23/2007. Since 4 June 2024 it has no longer been possible to obtain such a permit without a visa through an expression of interest filed inside the country; procedures started before 3 June 2024 are the exception. The route now begins with a D2 visa at a consulate. Practical steps are covered in the article on the D2 visa.

The document list for the permit on the portal of the Agency for Integration, Migration and Asylum (AIMA) shows plainly what is checked: proof that the activity has been opened with the tax office and social security, a services contract or proof of company formation through the permanent register certificate or the latest invoices issued, proof of registration with the tax office and social security, a criminal record certificate and proof of accommodation. A temporary permit is valid for two years from issue and is renewed for successive periods of three years.

At renewal the implementing regulation requires proof that your position with the tax office and social security is in order, meaning no debts, and that the independent activity is actually carried on. A company with no turnover and no contributions, registered only for the visa, becomes a problem at this stage. We handle the registration of Portuguese companies under the service for company registration in Portugal, and an overview of the country is in the section on Portugal.

What this means for you. In Portugal a debt to social security, even a small one, can stop a renewal. Request certificates of no debts well in advance, not the day before filing.

Why renewals are refused

The specific grounds for refusal differ between countries, but the rules show where company owners most often lose status. Almost all of these situations can be prevented by looking at the company through the eyes of the migration service a few months before filing.

• Taxes and contributions below the threshold. In Montenegro below EUR 5,000 a year, in the UAE tax route to the golden visa below AED 250,000.
• The director is not employed: no employment contract, no social insurance registration, no salary paid.
• Salary below the required level. In Cyprus below EUR 2,500 for key staff, while the EUR 2,000 transitional threshold applies only until the end of 2026.
• The stake in the company has changed. In Montenegro the EUR 5,000 rule is tied to a stake above 51%, and in Serbia self-employment requires a controlling stake.
• No separate office, or the office is the home, contrary to the Cyprus strategy.
• The UAE licence or establishment card has expired: visas are not renewed without them.
• Debts to the tax office or social security in Portugal.
• The filing window was missed: in Montenegro no later than 30 days before expiry, in Serbia before the current permit expires.
• The business plan in Spain is not being delivered and the conditions on which the permit was granted no longer hold.

A separate risk is the bank account. Many migration checks rely on statements: in the UAE a company account statement is part of the golden visa package, and in Cyprus and Spain money flows show that the company operates. If the bank has closed the account or there is no activity on it, this is visible at once. How to prepare a company for bank checks is described on the page on corporate accounts; the origin of start-up money is explained by the term source of funds.

Document checklist for renewal

The set depends on the country, but the core should be collected throughout the year, not a week before filing. The table is a general list we use to check whether a company is ready for a residence renewal.

Foreign documents usually need an apostille and a translation. Register and tax certificates have a short validity, so they are requested close to filing. We take on the bookkeeping and reporting on which the whole package rests under the service accounting support.

How to prepare the company for renewal

It is better to choose the country and company form to suit your business, not the shortest document list; the service for choosing a jurisdiction helps with this. We handle company registration, the legal address and ongoing support under the services for company registration and for a legal address. The glossary explains the term residence permit, and you can discuss your situation at an online consultation. This article describes general rules and does not replace a review of your own documents.

How this article was prepared

Sources: the Law on Foreigners of Montenegro (Official Gazette of Montenegro 12/18 as amended) and the Law amending and supplementing it, adopted by the Parliament of Montenegro on 31 December 2025 and published in the official gazette; Serbia's official portal for foreigners welcometoserbia.gov.rs, information from the Serbian Ministry of the Interior and the National Employment Service, and the Law on Employment of Foreigners as amended in Official Gazette of the Republic of Serbia 62/2023; Spanish Law 14/2013 in the consolidated version of the Official State Gazette (Articles 62, 69, 70 and 76); the Cyprus Migration Department (gov.cy, section on companies of foreign interests) and the Strategy for Attracting Businesses and Talent published by the Ministry of Energy, Commerce and Industry; the UAE government portal u.ae, the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the General Directorate of Residency and Foreigners Affairs Dubai (GDRFA) and the UAE Federal Tax Authority; Portuguese Law 23/2007 and information from the Agency for Integration, Migration and Asylum (AIMA). This article is not individual legal advice.