Registering a company in Montenegro in 2025 – conditions, taxes and advantages

When choosing a European country for doing business, preference is usually given to jurisdictions with a strong economy, members of the European Union. This approach is quite understandable, but in the last few years there have been alternatives. For example, if you open a company in Montenegro, you can get the same advantages, supplemented by some interesting features.

The most significant of these is the low corporate tax (CIT, Corporate Income Tax). If a number of conditions are met, the fiscal burden on the LLC in Montenegro will not be higher than in an offshore or midshore jurisdiction. It is possible to obtain residence permit for business in Montenegro – this is a rare option in 2025, opening the possibility to eventually apply for permanent residence and full citizenship. Also note the strategic location at the crossroads of major trade routes and easy access to EU markets. But Montenegro has other features that make doing business comfortable.

Advantages of doing business in Montenegro

It is quite easy to open a business in Europe. Montenegro only confirms this rule, the company registration procedure is standardised and regulated by EU directives, which have more legal weight than national corporate legislation. And although the country is not a member of the EU, company registration in Montenegro retains all the advantages of doing business in the EU

Business in Montenegro, main advantages:

• low taxes in Montenegro for business – progressive CIT scale, rates of 9%, 12% and 15%;
• easy company registration in Montenegro with minimum formalities;
• national currency – euro
• Montenegrin company law equalises the rights of Montenegrin citizens with foreigners.
• company registration in Montenegro can be supplemented by opening a corporate account in any local bank (the financial sector is one of the most developed in the countries of central and southern Europe);
• offshore Montenegro (rather a midshor like Singapore or Hong Kong, as the country has taxes) is not included in grey and black lists of international regulators (FATF, OECD);
• an emerging market economy with consistently positive growth dynamics;
• low inflation – 2.6 per cent in March 2025 (Tradingeconomics data);
• low public debt (4.4 billion USD, Q3 2024) allows to allocate budget money to finance social programmes;
• possibility to obtain a residence permit for business in Montenegro (analogue to the “Golden Visa” programmes);
• skilled labour force with relatively low (compared to EU countries) salary expectations.

For whom business in Montenegro is suitable

The jurisdiction offers good conditions for doing almost any business. Given that there are no restrictions on foreigners, the country can definitely be considered as one of the basic options.

Recommended areas of business to launch in Montenegro are:

• Tourism;
• HoReCa (Hotel, Restaurant, Catering)
• projects in the energy sector;
• industrial production;
• import-export operations;
• service sector;
• agricultural production.

Factors that can be decisive when choosing Montenegro for starting a business:

• simplified business immigration to Montenegro – it is possible to obtain a residence permit on favourable terms;
• relatively high confidentiality;
• legal tax optimisation;
• you need a company in Montenegro to fulfil specific tasks, but the membership of the country of registration in the European Union is not desirable.

Restrictions related to starting and running a business in Montenegro:

• relatively limited domestic market (population of Montenegro is about just over 623,600);
• compulsory accounting even in the absence of profit;
• it is impossible to issue shares without nominal (authorised) value;
• data on company officials in Montenegro (director, secretary, shareholders, beneficiary) are included in the public register;
• relatively limited list of countries that have signed double tax treaties with Montenegro 36

Montenegro’s tax system

The financial burden on businesses and citizens is low. Therefore, the expression “offshore Montenegro” has become common. De jure it is incorrect, as there are taxes in Montenegro, also there are no signs of classic offshore zones. But de facto the situation is changing. Taxes are low, so Montenegro is more correctly called a midshoring (typical examples are Singapore and Hong Kong).

Personal taxes, payroll:

Personal taxes, self-employment:

Further information on personal taxation:

• any other personal income is taxed at the rate of 15%;
• in Montenegro, additional municipal income tax must be paid at the place of residence of the payer, the rate is 13%, in Podgorica and Cetinje – 15%;
• the calculation of the taxable base depends on the status of the payer: residents pay on any income, non-residents – only on those received in Montenegro itself.

Corporate taxes, CIT:

Other taxes payable by the company in Montenegro:

• VAT: standard rate 21%, there are reduced rates of 0%, 7% and 15%;
• customs duties, excise duty – the rate depends on the goods;
• annual property tax – 0.25%-1% of the market value;
• property transfer tax – 3%-6%;
• unemployment insurance (also paid by the employee) – 0.5%;

Additional information on taxation:

• There is no stamp duty in Montenegro;
• there is no Net wealth tax (Net wealth / Worth tax rates) in Montenegro;
• withholding tax (excluding SIDN contracts): for residents – 15% / no / no; for non-residents – 15% / 15% / 15%; for non-residents in Tax Haven – 30% / 30% / 30%;
• capital gains tax – 15%.

Business regulation in Montenegro

The corporate legal framework is based on pan-European legislation, although formal compliance with EU directives is not mandatory.

One of the standard pan-European regulations is the protection of intellectual property rights (IPR, Intellectual Property Rights). The relevant general directive – 2004/48/EC – was adopted in April 2004. Later it was supplemented by a number of specialised laws that significantly reduced the risks associated with the unauthorised use of other people’s intellectual property.

The General Data Protection Regulation (GDPR, General Data Protection Regulation) describes the principles and rules for the disclosure and use of personal information. The GDPR is based on the European Regulation 2016/679, adopted in April 2016. If you want to open a business in Europe, compliance with IPR / GDPR will be mandatory in any case, even taking into account the fact that Montenegro has not yet joined the European Union.

Types of legal entities, basic corporate requirements

When launching a start-up in Montenegro, a small company or a large structure with a complex management system, you must first decide on the legal form of organisation. The choice will affect the necessary documents for opening a company, the specifics of reporting and bookkeeping in Montenegro, authorised capital and available business opportunities. But a legal address in Montenegro is needed in any case.

The most popular types of legal entities are:

• DOO (Društvo sa ograničenom odgovornošću) – classic limited liability company, the format is well suited for small and medium-sized businesses, formal authorised capital from €1;
• JSC (Akcionarsko Društvo) – a joint-stock company with extended business opportunities, oriented towards complex structures, the minimum requirements for the authorised capital are much higher – at least €25 thousand.

What else you should pay attention to:

• A company in Montenegro requires at least one director and one shareholder, and one person can combine both positions.
• A registered office in Montenegro (in general case – economic presence in the jurisdiction) is mandatory, but the management of the company may reside permanently in another country;
• if all the necessary documents are ready, the registration procedure takes no more than 10 days;
• nominee service is allowed in Montenegro, so directors and shareholders can be employed.

Peculiarities of operating activities

When it is said that offshore Montenegro is one of the best places in Europe, often overlooked is the mandatory compliance with administrative corporate requirements inherent in traditional midshoring and onshore jurisdictions.

Typical examples:

• bookkeeping in Montenegro – it is mandatory;
• taxes in Montenegro for business – they exist, although the fiscal burden on companies and individuals is low;
• legal address in Montenegro – it is required, although there are no requirements for extended economic presence in the jurisdiction (substance).

Therefore, before registering a company, it is necessary to calculate all legal consequences of such a step, not limited only to the formal requirements for the opening of a new legal entity.

What you should definitely pay attention to:

• Montenegrin banks will request extended information on a potential client when opening an account (personal or corporate);
• Montenegro has joined the automatic exchange of financial information (MCAA CRS);
• Montenegro has concluded 45 double tax treaties;
• Montenegro is not yet a signatory to the MLI BEPS convention (an OECD development aimed at combating tax base erosion);
• Montenegro has signed the regional Central European Free Trade Agreement (CEFTA, Central European Free Trade Agreement);
• Montenegro’s accession to the EU is expected in the next few years;
• KYC / AML and FATCA compliance is mandatory.

For which legal entities external independent audit is mandatory:

• public JSCs;
• insurance companies;
• financial and credit organisations (including banks);
• medium and large companies.

Which companies Montenegrin corporate legislation classifies as medium and large companies:

Residence permit for investment

Registering a company in Montenegro can be the first step towards citizenship. The CBI (Citizenship By Investment) programme was officially closed on 31 December 2022. Therefore, it is not possible to directly become a Montenegrin passport holder. But in many cases, a “long” residence permit, available also through business or property purchase, can be a reasonable substitute, suitable for most real-life situations.

The main stages of obtaining an investment residence permit for Montenegro:

• Issuance of a short-term visa of category C. It is valid for up to 90 days and allows you to enter Montenegro several times. The purpose of visiting the country is not only business, but also any personal reasons, including the purchase of property. Transit visas of types A or B are limited in their possibilities, visa of category D is more difficult to obtain and its validity is limited to 6 months within one year.
• Fulfilment of investment conditions. Company registration or property purchase is possible in a remote format (through a representative), but a personal visit is more preferable. 90 days should be sufficient for all legal actions.
• Obtaining a work permit (only for the business route). This document is required so that you can legally hold the position of director in the company you are registering.
• Opening a personal bank account. This will be used to receive your salary in the open company (you must hold the position of director in it) or for payment under a property purchase agreement. Then the account can be used for daily spending, paying bills, savings and other purposes.
• Obtaining a temporary residence permit (Privremeni Boravak). It can be issued only if you have all the documents. The validity period is 1 year, but multiple extensions are allowed (provided that all basic conditions are maintained).
• Obtaining permanent residence status. It can be claimed after 5 years of residence in Montenegro on the basis of temporary residence permit. Persons from 14 to 65 years of age are required to prove their language skills.
• Obtaining a Montenegrin passport. After 10 years of legal residence in the country, foreigners can apply for full citizenship, compliance with basic requirements is mandatory (language skills, “clean” file in the police and tax service, a permanent source of income, own or rented housing).

Conclusion, conclusions

Opening a company in Montenegro is a good opportunity to start a promising business in a solid European jurisdiction. The main advantages are low taxation, elaborate and loyal to foreigners corporate legislation, the option of obtaining a residence permit and developed infrastructure. The country will become even more attractive for business after joining the European Union, retaining the basic advantages in full.

There are other interesting jurisdictions in Europe for commercial activity, including those with low taxation and expanded opportunities for company registration. But business visa to Montenegro has been considered as one of the priority business and immigration routes for several years.

Who will be interested in company registration in Montenegro:

• Start-ups developing promising and potentially market-demanding products, services and facilities;
• companies that want to legally save on taxes by operating outside traditional offshore jurisdictions;
• business people who would like to obtain an alternative residence permit in Europe;
• legal entities whose business requires a loyal attitude to foreigners and simple, understandable legal regulation;
• businessmen engaged in cross-border import-export operations, as Montenegro is located at the crossroads of major trade routes linking Europe, Asia, the Middle East and North Africa.

Note Montenegro’s developed banking sector, which saves companies and individuals from opening accounts in foreign financial institutions. Another big plus of the country is good conditions for recreation, so you can not only do business, but also spend your holidays at the best resorts.

If you still have any questions, you can discuss them with our specialists during an individual consultation.