Montenegro - Civil Law
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Montenegro taxes

Want to setup a company? This will tell you about tax laws for a LLC, which is the most common legal entity in Montenegro.

Montenegro imposes corporate tax on resident companies worldwide income. The prevailing estimated tax rate for offshore income, from our research, but seek professional advice, is 9%. Montenegro may not have major incentives to bring in offshore income made internationally. Taxes are low in Montenegro because the CIT rate is 9%. This ranks Montenegro as 32nd overall with regards to corporate tax rate worldwide.

The VAT rate in Montenegro is 19.00%, which ranks Montenegro as 127th overall with regards to VAT taxation rate internationally. In terms of other taxation, an employer will contribute 10.30% to the equivalent of a social security fund and an employee will contribute 24.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 98 hours. Contributing to this is the number of yearly labor tax payments, which is 2 in ME.

Thin capitalization standards are not officially enacted. Thin capitalisation refers to any type of requirements on given company with respect todebt-to-asset ratios. Dividents payments between resident companies are subject to a final withholding tax of 9%. Dividends received by domestic companies from foreign companies are included in income tax base, but there are usually available tax credits for foreign tax paid limited to the amount that would be calculated using Montenegrin rates. Dividends are distributions of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be one of the following stock, cash, or property. Capital Gains are considered ordinary income and taxed at corporate income standard tax rate of 9%. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 9%. Which means that the tax authorities expects legal entities to automatically withhold 9% of payments abroad on interests. The dividends withholding tax rate is 9%. This should be interpreted that usually the taxman expects relevant legal entities to pay tax on 9% of dividends remitted abroad. Royalties are also subject to a withholding tax of 9%. This means that any payment to non-resident on royalties is taxed at a 9% rate. Withholding tax rates may be reduced under a tax treaty.
There is no known tax on wealth in Montenegro. There are inheritance, transfer and real property taxes in ME. We are not aware of any popular and well known R&D initiatives that provide breaks on taxation in this country.

The above is not tax or legal advice for your particular personal tax obligations. can point you to a lawyer in Montenegro who can give you the proper advice and help you need. Ready to get started? Click the free consultation button above.

It takes approximately 43 hours to file and prepare documents for a Montenegro Civil Law.
The corporate tax is approximately 9% which is 33 in the world.

Owners of a company in Montenegro are not allowed to carry back a loss and may be allowed to carry forward a loss for 5 years.

The vat rate in Montenegro is 19% which ranks 127 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
30Tax treaties
9%Offshore Tax
9%Corp rate
-Loss carryback years
43Corporate time
19%VAT rate
9%Capital gains
NoAEOI planned

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We can help you form a company in Montenegro. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Montenegro, which is required by law.

Montenegro Tax Treaties

CountryTypeDate signed
DTC 1996-09-04
DTC 2004-12-22
DTC 1995-10-12
DTC 1997-06-12
DTC 2001-12-14
DTC 1985-06-29
DTC 2008-11-04
DTC 1986-05-08
DTC 2006-02-08
DTC 1981-03-19
DTC 2001-03-22
DTC 1980-06-18
DTC 2005-11-22
United Arab Emirates
DTC 2012-03-26
DTC 1982-02-24
Czech Republic
DTC 2004-11-11
DTC 2005-10-12
DTC 2001-06-20
DTC 2000-05-25
DTC 2003-06-11
DTC 1980-11-21
United Kingdom
DTC 1981-11-06
DTC 2005-04-13
DTC 1996-05-16
DTC 2005-11-22
DTC 1982-02-22
DTC 1974-03-28
DTC 2013-03-12
DTC 2010-10-07
DTC 2001-02-26

Country Info

National Flag of
Црна Гора (srp)
Area Code
Southern Europe
Native Languages