Montenegro

About Montenegro

Montenegro is a country renowned for its rich history, diverse culture, and breathtaking landscapes. In just a few hours' drive, you can transition from the mountains to the seashore.

Geographical position:

Montenegro is a sovereign country in Southeastern Europe that lies on the eastern coast of the Adriatic Sea. It borders Bosnia and Herzegovina to the north, Serbia to the east, Albania to the south and Croatia to the west. The capital and largest city is Podgorica, while Cetinje has the status of the capital.

Size and population:

Montenegro's territory covers approximately 13,812 km 2 , boasting a coastline spanning 293.5 km. The country is home to around 620 thousand inhabitants.

Legal system:

Montenegro operates under a legal system of civil law, founded on the Constitution adopted in 2007. The nation has taken significant steps to enhance its legal framework and combat corruption, aiming to attract foreign investment and provide a robust and stable business environment.

Banking system:

Montenegro has developed a modern and efficient banking system that has played a pivotal role in the country's economic growth. The banking sector is recognized for its stability and innovation, attracting foreign banks and investors. The nation has also been proactive in adopting financial technologies, making services such as online banking and digital payments widely accessible.

International taxes:

Montenegro has embraced a favorable tax regime designed to attract foreign investment and stimulate economic development.
Corporate tax rate – Corporate tax rate ranges from 9-15%:

1) up to EUR 100,000.00 9%;
2) from EUR 100,000.01 to EUR 1,500,000.00: EUR 9,000.00 + 12% on the amount over EUR 100,000.01;
3) over 1,500,000.01 euros: 177,000.00 euros + 15% on the amount over 1,500,000.01 euros.

Value added tax (VAT) is 7% (reduced rate) and 21% (standard rate).

Free Trade Agreements:

Montenegro signed the Agreement on Amendment and Accession to the Central European Free Trade Agreement (CEFTA 2006) in Bucharest on December 19, 2006. This agreement has been in full force since November 22, 2007.

Between 2018 and 2020, Montenegro's foreign trade in goods was predominantly with the CEFTA Parties and the European Union (EU). In 2008, the share of trade with CEFTA countries averaged around 30%, while trade with EU member states stood at an average of 46%. Regarding foreign trade in services with the CEFTA Parties during the same period, the participation rate averaged at 29%..

Residence permit in Montenegro

Why Consider Obtaining a Residence Permit in Montenegro?

Simplified Application Process: Montenegro offers relatively straightforward and efficient procedures for applying for residency. Depending on the type of residency you are pursuing, the process may also be more affordable compared to other countries.

Tax benefits – Montenegro boasts the lowest corporate income tax rate in the region. Tax exemptions in areas with a development index of 75% have earned Montenegro the reputation of being a "tax haven" in Southeast Europe. The tax system is modern, flexible, and consistent, extending these benefits to foreign citizens. The low profit tax rate, which ranges from 9% to 15%, stands out as a primary incentive for establishing a company in Montenegro. Additionally, tax loss carry-forward is allowed for up to 5 years, enabling the offsetting of previous losses against future profits.

Convenient Access to the Montenegrin Banking System– Montenegrin residents enjoy a positive relationship with local banks, making banking services more accessible and efficient.

Investor-Friendly Environment – Montenegro actively seeks foreign investments and implements policies to attract investors. As a result, the government has established free economic zones and offers various incentives to stimulate economic growth.

1) Residence Permit Based on Establishing a Company in Montenegro

Requirements:

1 – You must establish a company in Montenegro. Subsequently, you can apply for a residence permit, which is valid for one year from the date of issuance.

2 – Your monthly income must meet or exceed the minimum wage in Montenegro, which is 450 euros. Meeting this requirement grants you the right to temporary residence.

3 – After continuously residing in Montenegro for 5 years, you are eligible to apply for permanent residence.

2) Residence Permit Based on Real Estate Investment