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:
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)
Small businesses with annual turnover below €30,000 may operate without VAT registration.
A second reduced rate of 15% was introduced on 1 January 2025 (Official Gazette of Montenegro 94/24, rulebook 117/24): accommodation services, catering and some goods were moved to it from the 7% rate. At the same time, the zero rate on the construction and furnishing of 5* category facilities was abolished.
Social Contributions
Both employer and employee must pay the following contributions:
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