Tax system in Montenegro
Montenegro generally taxes resident individuals on worldwide income and non-residents on Montenegrin-source income. Salary tax uses monthly 0%, 9% and 15% bands, while most property, capital, rental and other income is taxed at 15%. Municipal surtax can add up to 13% of the national tax, or 15% in Podgorica and Cetinje.
Companies pay progressive corporate income tax of 9%, 12% or 15% depending on taxable profit. Resident companies are generally taxed on worldwide profit, while non-residents are taxed on Montenegrin-source profit or a Montenegrin permanent establishment.
The wider system includes 21% standard VAT, 15% and 7% reduced VAT rates, local annual property tax, progressive real-estate transfer tax, customs and excise duties, a 9% insurance-premium tax, payroll contributions, and a 15% global minimum tax for in-scope groups.
Tax rates at a glance
- Income tax
- 0% - 15%Progressive salary bands
- Wealth tax
- 0% broad / 0.25%-1% property
- Inheritance tax
- No standalone estate tax
- Capital gains tax
- 15%
- Corporate tax
- 9% / 12% / 15%
- Dividend tax
- 15%
- VAT
- 21% / 15% / 7% / 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersEmployeesExpatsProperty investorsRegional operators
Watch out for
- Montenegro's low headline salary and corporate rates do not remove the 21% standard VAT, local surtax, payroll contributions, property taxes or real-estate transfer tax.
- The annual property bill is local. A secondary home, illegal building or undeveloped construction land can fall into higher statutory bands than a primary residence.
- A new global-minimum-tax law from 2026 can require a top-up to a 15% effective rate for multinational and large domestic groups with consolidated revenue of at least EUR 750 million.
- Montenegro's 2026 tax changes also brought lottery, betting and global-jackpot winnings into personal income tax, so gaming income should not be assumed to be tax-free.
Frequently asked questions
Is Montenegro a low-tax country?
It has comparatively low personal and corporate headline rates, but the real result depends on municipal surtax, employee contributions, VAT, property costs, transfer tax and the source of the income.
Does Montenegro have a wealth tax?
There is no broad annual tax on net financial wealth. Montenegro does levy annual local property tax on land and buildings, with higher bands for some secondary, illegal and undeveloped properties.
What should an expat or founder check first?
Start with tax residence, worldwide-income exposure, the local surtax, payroll contributions, company management and permanent-establishment risk, dividend withholding, treaty relief and property ownership.