Starting a business in
🇲🇪Montenegro
Checked November 4, 2026 · How we score
Corporate tax
9%
Top income tax
15%
Setup from
$800
all-in, first year
Time to form
7 days
can be done remotely
Taxes in Montenegro
| Corporate income tax | 9% Progressive since 2022: 9% on taxable profit up to EUR 100,000; 12% (EUR 9,000 plus 12% of the excess) from EUR 100,000 to EUR 1.5 million; 15% above EUR 1.5 million. A 15% global minimum tax law for large groups was adopted in February 2026. |
|---|---|
| Personal income tax (top) | 15% Progressive personal income tax of 0%, 9% and 15% on monthly income bands since the 2022 Europe Now reform (0% on the lowest band, 15% above about EUR 1,000 a month), plus social contributions. Verify current bands with the Tax Administration. |
| Tax system | Worldwide income |
| Capital gains tax | 15%Capital gains of individuals are taxed at a flat 15%; withholding tax on several categories of Montenegrin-source income is also 15%. |
| Dividend withholding (non-residents) | 15% |
| VAT / GST | 21% |
| Social security | Employer and employee social contributions together are roughly 20-30% of gross pay; the Europe Now reform lowered labour taxation. |
Forming a company in Montenegro
| Usual entity | DOO (limited liability company) |
|---|---|
| Minimum capital | $1 |
| Setup cost (all-in) | $800–$2,500 |
| Annual running cost | $1,500–$5,000 |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Founders and owners of a Montenegrin DOO can apply for one-year temporary residence tied to the company, property owners and remote workers have separate routes. The citizenship-by-investment scheme closed at the end of 2022.
| Digital nomad visa | Temporary residence permit for digital nomads, $1,300/month income |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 2/5 (1 = easiest) |
Special tax regimes
Progressive corporate income tax (9/12/15%)
Small companies pay 9% on profit up to EUR 100,000, which keeps the effective rate low for early-stage businesses.
Digital nomad permit
Remote workers employed by or contracting with foreign firms can obtain a temporary residence permit of up to one year if they show a minimum monthly income.
Free-zone and incentive regimes
Companies in designated free zones (e.g. ports) and certain investment projects can benefit from customs and tax incentives; eligibility is project-specific.
Pros and cons
Why founders pick Montenegro
- 9% corporate tax on first EUR 100,000 of profit
- EUR 1 minimum capital and about one week to register
- Uses the euro and is an EU accession candidate
- Low cost of living and easy company-based residency
Watch out for
- Banking and payment processing for non-residents can be difficult
- Stripe and some global payment tools are not available locally
- Tax rules change often and the administration is slow
- Dividend and capital gains tax of 15%
Best for: Small service and IT businesses wanting 9% tax and cheap, quick setup · Digital nomads who want a euro-denominated base · Founders wanting low-cost European residency through a company
Montenegro: common questions
What is the corporate tax rate in Montenegro?
Corporate income tax is progressive: 9% on taxable profit up to EUR 100,000, 12% from EUR 100,000 to EUR 1.5 million and 15% above EUR 1.5 million. Most startups and small firms therefore pay 9%.
Can a foreigner open a company in Montenegro remotely?
Yes, in practice. A DOO can be registered through the Central Business Registry using a local lawyer under power of attorney, takes about a week and needs only EUR 1 capital. You need a local registered address, and opening a bank account may require a visit or video verification.
What are the personal income tax rates in Montenegro?
Since the 2022 reform, rates are progressive at 0%, 9% and 15% depending on monthly income, with a flat 15% on property income and capital gains. Dividends are subject to 15% tax.
Does Montenegro have a digital nomad visa?
Yes. Montenegro issues a temporary residence permit for digital nomads (up to one year) to remote workers who earn income from abroad and meet a monthly income requirement of roughly EUR 1,200. Check the Ministry of Interior for the current threshold.
Sources
- Tax Administration of Montenegro
- Central Business Registry of Montenegro (CRPS)
- PwC Worldwide Tax Summaries - Montenegro
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.