VAT and Other Taxes – Montenegro

Applies to most goods and services. Increased from 19% as part of EU accession preparation. Standard for European countries.

Applies to certain categories of goods and services. Intermediate rate between standard and preferential.

Preferential rate for: bread, milk, books, medicines, computers, public transport, hotels and restaurants (food and non-alcoholic drinks).

Export of goods, fuel for vessels in international traffic, certain other transactions. Right to reclaim input VAT.

When exceeding threshold of €30,000 in any 12-month period, registration is mandatory. After registration, cannot deregister for 3 years.

Companies below threshold can register voluntarily. Allows reclaiming input VAT but requires charging VAT on sales.

Annual tax on real estate based on market value as of January 1. Rate depends on type and location. Payment in two installments: by June 30 and October 31.

Paid upon acquisition of ownership rights to real estate. Applies to purchase transactions. Exemption for transfers between spouses and close relatives.

When buying a used car, motorcycle, boat, or aircraft in Montenegro, a 5% vehicle transfer tax is paid.