Invest in Montenegro

A foreign investor may be a foreign natural or legal person established abroad, a company with a share of foreign capital of over 10%, the Montenegrin citizen residing abroad for more than a year and the company established in Montenegro by a foreign entity.

A foreign investor:

• may establish a company (either alone or with other investors), invest in companies, buy a company or part of it, establish a part of a company.
• is taxed the same as domestic investors.

The share of a foreign investor may be in cash, goods, services, property and securities.

In the period 2015-2024, Montenegro generated EUR 8,2 billion of FDIs inflow, while the net FDI inflows in the same period amounted to EUR 4,9 billion. FDI inflow was recorded from over 120 countries worldwide, of which EUR 5,2 billion or 63% was generated from ten countries with the greatest share.

FDIs net inflow (in millions €)

The major investors in Montenegro by countries, 2015-2024 (mill. EUR)

REASONS TO INVEST IN MONTENEGRO?

• Legal framework for investments reformed in line with the EU legislation
• Favorable tax policy: corporate tax at rates of 9% / 12% / 15%; VAT at 21% (general rate) / 7% (reduced rate) / 15% (for hospitality services); personal income tax at 0% / 9% / 15%
• Simple START UP
• Liberal foreign trade regime
• National treatment of foreign investors
• A set of incentives offered at the national level, in a form of tax exemptions, for investments in the northern part of the country and in newly established business zones
• Investment incentives and subsidies given at the local level in a form of utility fees exemptions, favourable land rental and purchase price, reduction of property tax rate
• Developed telecommunication infrastructure
• No restrictions on profit, dividend or interests
• Monetary stability
• 44 agreements on avoidance of double taxation were concluded (https://upravaprihoda.gov.me/uprava).

Montenegro is a safe, economically viable and politically stable country, with a significant potential for further economic development. Membership in NATO and the World Trade Organization places Montenegro among the safe countries, where the international business standards are applied. Progress in EU accession negotiations, along with a competitive business environment with significant potentials in energy, tourism and agriculture, make Montenegro an attractive investment destination.

Based on the principles of the WTO (the member), Montenegro is a signatory of the multilateral and bilateral agreements – Stabilization and Association Agreement with the EU, CEFTA 2006, EFTA, Russia, Ukraine and Turkey, which enables the cumulation of origin and duty-free trade with around 800 million consumers. Montenegro is a signatory of 22 agreements on economic cooperation and 23 agreements on the mutual promotion and protection of investments. (https://www.gov.me/mek/medunarodna-saradnja)

THE TAX SYSTEM

The share of personal income tax and compulsory social security contributions in gross earnings is 21% (tax wedge).