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There are many reasons why is registering a Montenegro company in 2024 an excellent business opportunity.

- Montenegro has one of the lowest profit tax rates in Europe, only 9%
- The minimum initial capital for opening a limited liability Montenegro company is only 1 Euro, and for a joint-stock company, 25.000 Euros
- Low company maintenance costs
- A large number of skilled labor ready for employment
- Cheap lease of office space
- A large number of stable banks
- A large number of incentive programs by the state of Montenegro for investment
- Possibility of obtaining Montenegrin citizenship if you invest in Montenegro

The tax system in Montenegro consists of:

- Corporate income tax 9 %
- Personal income tax 9%
- Value Added Tax (VAT) 21%


Montenegro offers several tax incentives to attract foreign investment and stimulate economic growth. These incentives are designed to support various sectors, encourage entrepreneurship, and enhance the country's competitiveness. These incentives are as well a part of the government's strategy to position Montenegro as an attractive destination for foreign and domestic investors. Companies considering investment in Montenegro should evaluate these incentives in detail and consider engaging with local legal and tax advisors to optimize their tax position and ensure compliance with local regulations. Here’s an overview of the key tax incentives available in Montenegro:

Corporate Income Tax Incentives

1. Reduced Tax Rates in Undeveloped Areas
- Companies operating in economically underdeveloped municipalities may benefit from reduced corporate income tax rates. This incentive aims to promote investment and job creation in less developed regions.

2. Tax Holidays for Newly Established Companies
- Newly established companies can receive a tax holiday, exempting them from paying corporate income tax for up to three years, provided they operate in specific industries or regions.

Value Added Tax (VAT) Incentives

1. Zero VAT Rate
- Exports of goods and certain services are subject to a 0% VAT rate, which effectively exempts them from VAT, making Montenegrin products more competitive internationally.

2. Reduced VAT Rates
- Certain goods and services benefit from reduced VAT rates. For example, the supply of certain basic food products, medicines, and hotel accommodation is subject to a reduced VAT rate of 7%.

Investment Incentives

1. Incentives for Large-Scale Investments
- Montenegro offers special incentives for large-scale investments exceeding certain thresholds (e.g., investment amount and number of jobs created). These can include tax reductions, exemptions, or subsidies.

2. Incentives for Research and Development (R&D)
- Companies investing in R&D activities may qualify for tax deductions or credits, encouraging innovation and technological advancement.

3. Employment Incentives
- Companies that hire new employees, particularly from specific target groups (e.g., young graduates, long-term unemployed), may benefit from reductions in social security contributions or other tax incentives.

Sector-Specific Incentives

1. Tourism Sector
- The tourism sector in Montenegro benefits from various incentives, such as reduced VAT rates for accommodation services and potential exemptions or reductions in property taxes for hotel and resort development.

2. Renewable Energy
- Investors in renewable energy projects, such as solar, wind, or hydroelectric power, can receive benefits including tax exemptions or reductions and guaranteed purchase agreements for energy produced.

3. Free Zones
- Businesses operating in designated free zones in Montenegro enjoy several benefits, such as exemption from VAT and customs duties, streamlined customs procedures, and other fiscal incentives.

Customs and Excise Duty Incentives

1. Customs Duty Exemptions
- Certain goods imported for investment projects may be exempt from customs duties, especially if they contribute to economic development or are not available locally.

2. Excise Duty Exemptions
- Exemptions or reductions in excise duties may apply to specific goods used in production processes or environmentally friendly projects.

Other Incentives

1. Double Taxation Treaties
- Montenegro’s network of double taxation treaties can reduce withholding taxes on cross-border payments, further lowering the effective tax burden for investors.

2. Stability Clauses
- Investors in Montenegro may negotiate stability clauses that protect them from adverse changes in tax laws for a specified period, providing greater certainty and security.

Company Register in Montenegro

The entrepreneur willing to open a company in Montenegro must be familiarized first with the types of business defined by the law. These are:

- the limited liability companies
- the public limited liability companies
- the general partnerships
- the limited liability partnerships

A foreign company may also open a branch in Montenegro. Our company formation experts in Montenegro can help businessmen open any of the company types available in the country.

What does the company registration process include?

Company registration is straightforward: only one person is required

Our administrators will submit applications to the Central Register of Business entities, and approval is usually granted within a short time. To register a private company limited by shares or guarantee, you will require:

- Unique company name
- Office address registration in Montenegro
- Minimum of one director
- A minimum of one shareholder or guarantor (owner) – can also be the director
- Memorandum and articles of association
- Minimal 1 EURO of capital for company registration (limited by shares companies only)
- Bank account
 
Our coporate lawyers and accountants will provide you all information and assist regarding corporate tax and incorporate in Montenegro. Please contact us for a free consultancy or a detailed quote.

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