Montenegro Tax Rates
Montenegro operates a progressive income tax system with rates from 9% to 15%, combined with a competitive 9% corporate tax rate (one of the lowest in Europe) and a 21% standard VAT. The country uses the euro unilaterally and has EU candidate status. Montenegro's attractive tax rates, coastal lifestyle, and growing tourism sector make it increasingly popular with investors and expatriates.
Top Income Tax Rate
15%
Corporate Tax Rate
9%
VAT / Sales Tax
21%
Capital Gains Tax
15%
Detailed Tax Information
Income Tax Brackets
Montenegro applies progressive income tax: 9% on annual income up to €8,400, 12% on €8,401-€12,000, and 15% above €12,000. A personal allowance reduces taxable income. These rates are among the lowest progressive rates in Europe.
| Income Range | Tax Rate |
|---|---|
| €0 – €8K | 9% |
| €8K – €12K | 12% |
| €12K+ | 15% |
Corporate Tax
Montenegro levies one of Europe's lowest corporate tax rates at 9% on taxable profits up to €1.5 million. A 12% rate applies to profits from €1.5 million to €3 million, and 15% above €3 million. Small business lump-sum taxation is available.
Standard Rate
9%
Capital Gains Tax
Capital gains are taxed at 15% (9% for amounts within the first bracket). Real estate and securities gains are both subject to this tax.
Rate
15%
VAT / Sales Tax
Montenegro applies a standard VAT (PDV) rate of 21% with a reduced rate of 7%.
Standard Rate
21%
Cryptocurrency Tax
Cryptocurrency gains are taxed under general income tax rules at rates from 9% to 15%. Montenegro has limited specific crypto regulation.
Tax Treaties
Montenegro has approximately 43 double taxation treaties, many inherited from the former union with Serbia.
Treaty Network
43
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Montenegro
See how much you could save by moving here from your current country.
$-14,026
Tax in United States
$24K
24.4% effective
Tax in Montenegro
$38K
38.4% effective
Additional Cost
57.6%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
