Tax Exemptions and Reliefs for Agricultural Holdings  

Agriculture is one of the key sectors of development in Montenegro, and the state recognizes its importance through various tax incentives and exemptions. If you are a legal entity or an agricultural holding investing in production, you can benefit from a number of advantages that can ease your operations and enable further growth.

WHO CAN BENEFIT FROM TAX INCENTIVES?

According to the Law on Corporate Income Tax, tax incentives may be used by:

• Legal entities that reinvest profits into agriculture,
• Legal entities that invest funds into other entities engaged in agricultural production.

In both cases, corporate income tax is reduced by the amount of reinvested or invested funds.

CONDITIONS FOR OBTAINING TAX EXEMPTIONS

To benefit from tax incentives, the following conditions must be met:

1. Exemption limit – the total amount of tax exemption (reinvested funds + investments in other entities) cannot exceed 300,000€ over a three-year period.
2. Registration in the Register of Agricultural Holdings – legal entities and subjects wishing to use incentives must be registered.

HOW TO APPLY FOR TAX INCENTIVES?

• For reinvested funds – the request must be submitted to the competent tax authority within 60 days after the end of the fiscal year.
• For investments in other entities – the request must be submitted within 60 days from the date of investment.

WHO OVERSEES THE IMPLEMENTATION OF INCENTIVES?

The Government of Montenegro forms a Commission for Monitoring Tax Incentives, which supervises the proper use of these measures and ensures transparency and security of the process.

WHAT IS AN AGRICULTURAL HOLDING?

An agricultural holding is an organizational and business unit that includes one or more production units and engages in agricultural activity. It must have unified management, a name, and an address/registered seat.

Forms of holdings include:

• Business companies or other legal entities,
• Family agricultural holdings,
• Producer organizations,
• Educational or scientific-research institutions engaged in agriculture.

Tax incentives for agricultural holdings in Montenegro represent significant support for those investing in the development of this sector. By properly using these benefits, you can reduce tax obligations, reinvest funds, and accelerate the growth of your holding or company.

It is important, however, to comply with legal requirements – especially registration in the Register of Agricultural Holdings and adherence to the exemption limit.