Taxes in Montenegro
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€1 per day
All tourists arriving in Montenegro are obliged to pay a tourist tax — 1 € per day. All official accommodation facilities — hotels, pensions, campsites and even apartments from Airbnb and Booking — must register you with the tourist organization and pay the tax, including it as a separate line in the total bill. If you are traveling "wild", the stay tax must be paid by yourself at the tourist organization within a day.
children under 12 years of age are exempt from paying the fee
Children under 12 years of age are exempt from paying the tourist tax (but they still need to be registered with the tourist organization). For tourists aged 12 to 18 years old there is a preferential rate — 50% of the stay tax. Failure to register and pay the tourist tax may result in a fine — they will be checked at the border crossing when you leave Montenegro.
tourist tax
183 days
In order to change from the status of a tourist to the status of a resident, it is necessary to stay on the territory of Montenegro for at least 183 days per year with a residence, study or work visa.
fixed rate — 9%
Personal income is taxed at a flat rate of 9% if it does not exceed the national average income. This figure is announced annually: in 2022 it was 765 €. If personal income exceeds the average, it is already charged at 11% of income. For comparison, personal income tax in Russia is 13%. At the same time, personal income below 700 € is not taxed at all.
income tax
progressive tax
The corporate income tax rate in Montenegro is 9%, one of the lowest in Europe. However, income up to €100,000 is taxed at this rate. Then there is a progressive tax rate:
There are special benefits for entrepreneurs doing business in the less developed northern regions of Montenegro. They are exempted from paying income tax for the first three years of their activity.
profit tax
- on income from €100 000 to €1 500 000 — € 9000 plus 12%
- on the amount over €100 000, from €1 500 000 — € 177 000 plus 15% on the amount over €1 500 000.
standard rate — 21%
The standard VAT rate in Montenegro is 21%. However, there is also a reduced rate of 7% for certain categories of goods and services, including, for example, accommodation services — hotels, resorts, motels, etc. Entrepreneurs with an annual income of less than 18,000 € are subject to a 0% rate; services or goods related to such sectors as exports, supply of fuel and other necessary goods used for supply, etc. are also taxed at a zero rate.
value added tax
A 15% tax is taken on rental properties.
A 15% tax is taken on rental properties.
The average property tax ranges from 0.25% to 1% of the cadastral value and depends on the type of property, its location and options for its use. For foreigners who own property in the tourist area of Montenegro, an additional amount is added to the standard rate, which is 10−15% of this rate.
When buying real estate it is necessary to pay a tax of 3% to the budget of Montenegro. The exception is the purchase of the object from the developer — a legal entity. In this case the tax is not paid.
From January 1, 2024, the tax scale will become progressive. The tax rate will remain the same for properties worth up to €150,000. For a property worth between €150,000 and €500,000, a fixed tax of €4500 will have to be paid, as well as 5% of the amount above €150,000. For properties above €500,000 , the flat tax will be €22,000 and the rate on the excess will be 6%.
real estate taxes
When a vehicle is purchased and every year of its use, a tax is levied, the rate of which depends on the type, value, characteristics and year of manufacture of the vehicle. For example, the annual payment for a car ranges from €25 to €1500, and for an airplane — €1000−1500. At the same time, each year the tax rate is reduced by 5%, but cannot be less than 50% of the original tax amount.
vehicle tax
Double taxation treaties are valid for 43 countries
Treaties for the avoidance of double taxation
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