How income tax works in Montenegro
Residents are generally taxed on worldwide income, while non-residents are taxed on Montenegrin-source income. Residence, source and treaty tie-breaker rules should be checked together when someone works or owns assets across borders.
Monthly salary is taxed at 0% up to EUR 700, 9% on the portion from EUR 700.01 to EUR 1,000, and 15% on the portion above EUR 1,000. The employee-side pension and disability contribution is 10%; health contributions were abolished, while unemployment and other payroll charges can still apply.
Entrepreneurial income is taxed at 0% up to EUR 8,400 annually, 9% from EUR 8,400.01 to EUR 12,000, and 15% above EUR 12,000. Property income, capital income, capital gains, royalties and many other personal-income categories generally use a 15% rate.
Income tax brackets in Montenegro
| Bracket | Rate | Notes |
|---|---|---|
| Salary up to EUR 700 per month | 0% | Taxable salary band |
| EUR 700.01 to EUR 1,000 per month | 9% | Salary band |
| Above EUR 1,000 per month | 15% | Salary band |
| Entrepreneurial income up to EUR 8,400 per year | 0% | Annual taxable income |
| EUR 8,400.01 to EUR 12,000 per year | 9% | Annual entrepreneurial band |
| Above EUR 12,000 per year | 15% | Annual entrepreneurial band |
Tax rates at a glance
- Salary up to EUR 700
- 0%Monthly band
- Salary EUR 700.01-1,000
- 9%
- Salary above EUR 1,000
- 15%
- Entrepreneurial income
- 0% / 9% / 15%
- Other personal income
- 15%
- Local surtax
- Up to 13% / 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsContractorsEntrepreneursRemote workers
Watch out for
- The 0% salary band is not a blanket personal allowance. It applies to the relevant salary band, while the national tax can be increased by municipal surtax of up to 13%, or 15% in Podgorica and Cetinje.
- A foreign remote worker can have both personal residence and employer permanent-establishment questions. A residence permit or contract location does not by itself settle the tax result.
- From 1 January 2026, lottery, betting and global-jackpot winnings are taxed progressively at 0% up to EUR 50, 10% on EUR 50.01-EUR 1,500 and 15% above EUR 1,500, with the operator withholding the tax.
- Annual filing can still be required for self-employment, property, capital gains, foreign income and other categories even when salary tax is withheld by an employer.
Frequently asked questions
What is Montenegro's top salary tax rate?
The top national salary rate is 15% on the monthly portion above EUR 1,000. Municipal surtax can then add up to 13% of the national tax, or 15% in Podgorica and Cetinje.
Are foreign residents taxed on worldwide income in Montenegro?
Montenegrin tax residents are generally taxed on worldwide income. Non-residents are generally taxed on Montenegrin-source income, subject to treaty rules.
How are freelance and rental earnings taxed?
Entrepreneurial income uses annual 0%, 9% and 15% bands, while rental and many other property or capital-income categories generally use a 15% rate plus any applicable municipal surtax and allowable deductions.