Tax System of Montenegro
A concise guide to the main taxes and business conditions
Corporate Income Tax
Montenegro uses a progressive corporate income tax rate that depends on annual profit:
Up to €100,0009%
€100,001 – €1,500,00012%
Above €1,500,00015%
Personal Income Tax
The personal income tax rate is 9% for most income types. This makes Montenegro particularly attractive for freelancers, remote workers and sole traders.
Value Added Tax (VAT)
Standard rate
Reduced rate
Food, medicines, books and essential goods
Zero rate
Export of goods
Small businesses with annual turnover below €30,000 may operate without VAT registration.
Social Contributions
Both employer and employee must pay the following contributions:
Pension and disability insurance15%
Health insurance8.5%
Unemployment contribution0.5%
Real Estate Tax
Real estate tax ranges from 0.25% to 1% depending on the municipality and property type, making Montenegro an attractive destination for property investment.
Advantages of the Tax System
- ✓Montenegro has double-taxation treaties with more than 40 countries, including Russia, Ukraine and Belarus
- ✓Minimum share capital for a DOO is just €1
- ✓Company registration takes only a few days
- ✓Progressive taxation adapted to income level
- ✓VAT exemption for small businesses with turnover below €30,000