Tax 9%

O Did you know that Montenegro offers you a 9% income tax rate??

Yes, while you are performing your Business in Montenegro you will pay only a 9% Income tax rate. Montenegro’s tax regime has become one of the most competitive in whole of Europe. With 9% corporate profit tax rate companies operating in Montenegro enjoy not only a business friendly environment but also a low tax burden, thus maximizing their operational profit. Montenegro has a fair and transparent tax system with a low rate. Companies in Montenegro pay the same 9% flat tax rate in company income tax (CIT). This applies to things like capital gains and interest income as well as standard operating income. Lloyds Bank calculated that in 2018 the average Montenegrin company turned over 22.2% of profit to the government taxes. That compares to 44% in the US and 48.9% in Germany.

Our partner Finance plus, with 25 years of experience, will be your support during your business in Montenegro. With their experienced workers you will be always up to date with all changes applying as well in the legislation and regarding Tax system changes

Once you’re here, it’s fairly easy to get a handle on Montenegro’s tax system. Things you should know include: You’ll pay at least 9% in personal income tax.

This goes up to 11% for the part of your income above the Montenegrin average. New goods and services have a 21% VAT levied on them. (And this includes new homes.) Land transfer, interest and capital gains taxes are also lower than the average. Residents are taxed on their worldwide income, regardless of the source. Nonr-esidents are taxed only on Montenegro-source income. An individual is considered resident for tax purposes if he/she: spends at least 183 days in a tax year in the country; has domicile in Montenegro, or has a centre of personal and economic activities in Montenegro.

Both residents and non-residents must follow the same taxation rules and rates. The foreign investors who open a company in Montenegro are due to pay the corporate tax at the rate of 9%, which is deduced from the income they obtain in this country. Although the funds gathered from the corporate tax are an important source of money for the government, the corporate tax has been lowered by law, from a maximum of 20% in the past years to the actual rate of 9%, in order to encourage foreign investment in the country