Business Taxation – Montenegro

Lowest rate applies to profit up to €100,000. Ideal for small and medium businesses. One of the lowest rates in Europe.

For profit in this range: fixed €9,000 plus 12% on amount above €100,000. Middle rate for growing businesses.

For large companies: €177,000 plus 15% on profit above €1,500,000. Maximum rate still competitive by European standards.

Resident companies are taxed on worldwide profit. A company is resident if incorporated in Montenegro or has place of effective management in the country.

Non-residents pay tax only on Montenegro-source income or income attributed to their Montenegrin permanent establishment.

Withholding tax on dividends, interest, royalties, rental income, consulting services, and other income from Montenegrin sources. Applied when paying to non-residents.

Montenegro has tax treaties with several countries. To apply reduced rates, need tax residency certificate and proof of beneficial ownership.

Innovative regime for fintech and crypto companies. Allows testing technologies before obtaining license. Particularly relevant for blockchain projects.

Self-employed in underdeveloped regions get 8-year tax exemption. Incentive for developing lagging territories.