The Montenegro tax system is among the best of the best for investors. In the previous sections, we’ve briefly mentioned some of its particularities, but now we’ll explain them more in-depth. The primary taxes in Montenegro are:

  • Income tax: 9-11 %
  • Corporate tax: 9 %
  • VAT: 21 %, and 7 %, and 0 % for tourism and some basic products
  • Withholding tax: 9 % on dividends, capital gains, rental income, royalties, and such
  • Social security contributions: 33.8 %
Montenegro is unique in the European real estate market. The investment returns for those who invest in Montenegrin real estate are among the highest in the entire continent. The trend is rising thanks to the tourism boom that this Balkan country has been experiencing for the last few years. In addition to the growing tourism market, another driver of the real estate boom in Montenegro is its citizenship by investment program, which requires that the applicant invests in a tourism real estate project.

friendly business environment with so many tax optimization opportunities are rare in Europe. Likewise, there’s a lot to do in tourism and financial services investment, which means that those that get there early may reap significant benefits.

the energy business is another industry with mostly untapped potential. As the country has plenty of water resources and a small population, there’s significant potential for selling clean hydroelectric and wind power to its neighbors.

Montenegro has the most yacht-friendly legislation in the Mediterranean region, which brings plenty of nautical tax benefits, such as a 7 % over marine and tourist services, and no VAT on vessel charters and fuel, meaning that fuel is almost 50 % cheaper than retail costs. That has made the maritime industry one of the most attractive markets in the country.