Detailed Guide to Tax Obligations in Montenegro

Starting a business in Montenegro comes with certain administrative and tax obligations. To operate legally and avoid unnecessary penalties, it is important to know in advance what to expect.

Below is a detailed guide to the most important tax and fiscal obligations for every entrepreneur and employer in Montenegro.

TAXES AND CONTRIBUTIONS ON SALARIES

As an employer, you are required to regularly pay taxes and contributions for health and pension insurance for your employees, including the executive director.

MINIMUM SALARY:

• Secondary education – €600
• Higher education – €800

CONTRIBUTIONS:

• On a salary of €600 – €76.89
• On a salary of €800 – €127.32

START OF OBLIGATIONS:

• For Montenegrin citizens – from the day the company is established
• For foreigners – from the day a residence and work permit is obtained

Payment deadline: By the 15th of the month for the previous month.

These contributions are recognized as business expenses and reduce your taxable profit. Keep in mind that as salaries increase, so do taxes and contributions.

VALUE ADDED TAX (VAT)

• Mandatory registration: if annual turnover exceeds €30,000
• Standard rate: 21% (with certain exceptions)

Payment deadline: By the 15th of the month for the previous month

CORPORATE INCOME TAX

Montenegro applies a progressive system of corporate taxation:

• Up to €100,000 – 9% of net profit
• From €100,000.01 to €1,500,000 – €9,000 + 12%
• Over €1,500,000.01 – €177,000 + 15%

Payment deadline: By March 31 of the following year.

DIVIDEND TAX

Once you close the financial year and generate profit, dividends are also taxed:

• Tax rate: 10–15% + surtax → approximately 20% on the net amount

Dividend distribution: possible only after the annual report is prepared and all obligations are settled

FISCALIZATION

In Montenegro, every invoice must be issued through certified fiscal software.

• Mandatory invoice elements: QR code and data generated by fiscal software
• Real-time monitoring: all invoices are automatically forwarded to the Tax Administration

Compliance with tax and fiscal obligations is essential for successful business in Montenegro. Whether you are a local entrepreneur or a foreign investor, understanding the rules can save you both time and money.

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