Learn everything you need to know about moving to Montenegro:
Read more about long-term solutions to relocating to Montenegro:
Personal Income Taxes in Montenegro
Income taxes in Montenegro are significantly lower than many other countries, with the base income tax rate being 9% for both corporate and personal income tax and 15% for higher rates of domestic and worldwide income.
According to PWC - Worldwide Tax Summaries, personal income for foreigners is taxed in the following manner:
“From January 1st 2022, Montenegro introduced a progressive taxation of salary:
Salaries up to EUR 700 (gross) are exempt from tax;
Salaries ranging from EUR 701 up to EUR 1,000 (gross) are subject to 9% tax;
Salaries from EUR 1001 (gross) are subject to 15% tax.”
"One of the biggest changes in 2022 is the introduction of a new rate of income tax for entrepreneurs:
From EUR 8,400.01 to EUR 12,000 is subject to 9% tax;
From EUR 12,000.01 is subject to 15% tax.”
Corporate Income Taxes in Montenegro
“Entities operating in Montenegro are subject to progressive corporate profit tax (CPT). Applicable tax rate depends on the realized profit of taxpayers and tax rate varies from 9% -15%. Progressive tax rate are as follows:
On the profit up to EUR 100,000, the tax rate shall be 9% fixed;
On the profit from EUR 100,000.01 to EUR 1,500,000, the tax shall be paid in the amount of EUR 9,000 fixed + 12% on the profit above EUR 100,000.01;
On the profit above EUR 1,500,000, the tax shall be paid in the amount of EUR 177,000 fixed + 15% on the profit above EUR 1,500,000.01.
Resident taxpayers are taxed on their worldwide profit. Non-resident taxpayers are taxed on their Montenegrin-sourced income or income attributed to their Montenegrin permanent establishment (PE). Non-residents are also subject to withholding tax (WHT) on income sourced in Montenegro."
It is also important to note that as soon as you have spent 183 days or more in Montenegro you automatically become liable for personal income tax.
This is an important consideration as if your country does not have a Double Taxation Avoidance Agreement with Montenegro, then you could become liable for income in both countries.
Montenegro Income Tax Comparison Chart
Montenegro Personal and Corporate Income Tax Comparison Chart
The following list of countries have double taxation treaties with Montenegro at the time of writing this article:
Albania, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Italy, Ireland, India, Korea, Kuwait, Latvia, Macedonia, Malaysia, Moldova, Malta, Holland, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Sri Lanka, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, and the United Arab Emirates. Income tax treaties with Spain and Qatar are pending.
Digital Nomads in Montenegro
Buying Property in Montenegro - Real Estate
Living and Working in Montenegro Guides
Learn everything you need to know about moving to Montenegro: