🇲🇪 Taxes · Montenegro
Taxes in Montenegro
A progressive and moderate tax system for investors and businesses: low personal income tax, modest corporate tax and a standard European VAT rate.
Since 1 January 2022, Montenegro has applied progressive taxation to salaries and entrepreneurs' income. All other types of personal income are taxed at 15%.
Personal income tax
The personal income tax rate depends on the gross salary:
- Up to €700 - no tax is charged.
- From €701 to €1,000 - a rate of 9%.
- From €1,001 and above - a rate of 15%.
Income other than salary is taxed at a flat rate of 15%.
Corporate profit tax
Residents pay profit tax on their worldwide income, non-residents only on income from Montenegrin sources.
- From €8,400.01 to €12,000 - a rate of 9%.
- From €12,000.01 - a rate of 15%.
Other taxes
- VAT - 21%.
- Property tax - 0.25-1%.
- Property transfer tax - 3%.
- Social contributions: pension insurance - 15%, unemployment insurance - 0.5%.
Your exact tax burden depends on your residency status and income sources. We go through your situation on a free consultation.
Key features of the Montenegrin tax system
Progressive income tax scale
Smaller salaries up to €700 are not taxed at all, and the top rate for individuals is only 15%.
Moderate corporate tax
Companies pay 9-15% depending on the size of their profit - one of the lowest rates in Europe.
Standard VAT
The 21% VAT rate is in line with other European countries.
FAQ
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