Tax Guide Print E-mail

The UK has a double taxation treaty with Montenegro; tax is paid in one country or the other and not both.

Income tax rates are progressive, to a maximum of 24% and tax is only paid on the earned income on Montenegro, for foreign residents.

Taxable income (monthly)

Tax payable

up to 65 Euro

0%

from 65 to 218 Euro

0 Euro + 16% on income exceeding 65 Euro

from 218 to 381 Euro

24.40 Euro + 20% on income exceeding 218 Euro

over 381 Euro

57 Euro + 24% on income exceeding 381 Euro


Capital gains arising from the sale of a property are treated as income, but properties owned for a minimum of three years and treated as a main residence, prior to sale are exempt. Non-residents pay tax on non-exempt capital gain at the rate of 15%.

Inheritance tax and gift tax are levied at between 1% and 30%. Tax paid in a foreign country on inherited property is deducted from the asset’s taxable value.

Personal taxation: non-residents

Foreign nationals living temporarily in Montenegro are considered non-residents and taxed only on Montenegrin-sourced income, including rental income (at 15%), interest payments and dividends.

Rental income is taxed in the same bands as the income tax bands (in table), but the taxable amount tends to be reduced by standard expenditures by 50%.

Personal taxation: residents

Foreign nationals who have a permanent home in Montenegro, or who spend more than 183 consecutive days there per tax year, are classed as residents and taxed on their worldwide income.

Corporation tax is between 15% (profits up to €100k) and 20% (profits above €100k)


Property taxes

An annual property tax of between 0.08% and 0.8% is payable, calculated on the market value of the property as at 1 January of the year in question.