Montenegro is a hidden pearl of the Adriatic Sea, but is gently showing itself to the whole world and bit by bit, with every year more and more people from distanced countries are coming to Montenegro making it a base for work and a place to live and raise a family.
Since 2002, the euro became official currency and for years now Montenegro is highlighted as one of the fastest growing economies in the Balkans. Having EU candidate status also helps to get status of a safe, trustworthy country with a great potential along with adorable nature.
Considering that it continues to follow all the EU directives, it’ll be a fair guess that Montenegro will acquire EU membership in a few years. When that happens, any investments in the country will see even greater returns.
Here are some facts that place Montenegro in a high position when it comes to benefits of opening a company in a foreign country.
Top 5 reasons for opening a company in Montenegro:
1. Favorable Tax Environment
Income taxes in Montenegro are significantly lower than many other countries, with the base income tax rate being 9% for both corporate and personal income tax and 15% for higher rates of income.
From January 2022, Montenegro introduced a progressive taxation of salary:
Salaries up to EUR 700 (gross) are exempt from tax;
Salaries ranging from EUR 701 up to EUR 1,000 (gross) are subject to 9% tax;
Salaries from EUR 1001 (gross) are subject to 15% tax.”
One of the biggest changes in 2022 is the introduction of a new rate of income tax for entrepreneurs:
From EUR 8,400.01 to EUR 12,000 is subject to 9% tax;
From EUR 12,000.01 is subject to 15% tax.
Corporate Income Taxes in Montenegro
Entities operating in Montenegro are subject to progressive corporate profit tax. Applicable tax rate depends on the realized profit and tax rate varies from 9% -15%.
Progressive tax rate are as follows:
On the profit up to EUR 100,000, the tax rate is 9% fixed;
On the profit from EUR 100,000.01 to EUR 1,500,000, the tax shall be paid in the amount of EUR 9,000 fixed + 12% on the profit above EUR 100,000.01;
On the profit above EUR 1,500,000, the tax shall be paid in the amount of EUR 177,000 fixed + 15% on the profit above EUR 1,500,000.01.
2. Easy Registration Process
The company registration process in Montenegro is streamlined for foreign entrepreneurs, with low minimum capital requirements (1 euro for LLCs) and accessible steps for small and medium-sized businesses. This makes starting a business in Montenegro a smooth experience.
3. Strategic Geographical Position
By establishing a company in Montenegro, which is sure to become a member of the European Union soon, it will become effortless to open up to the numerous business opportunities of the European Union through the Balkans. In addition, you will have the right of free movement in all European countries for yourself and your family.
4. Numerous Membership Advantages
Montenegro has Free Trade Agreements with EU countries, EFTA countries, CEFTA countries, Turkey, Russia, and Ukraine. By establishing a company in Montenegro, you can benefit from the commercial advantages of all these agreements.
5. Residency Opportunity
With opening a company in Montenegro, you have the right to obtain residency in Montenegro. This residency permit is issued for 1 year time and can be extended. Also, family members (spouse and children under 18 years old) are allowed to obtain it. This opportunity led many business people to consider family relocation to this Mediterranean country.
Montenegro has all the elements of a business-friendly environment. It has one of the lowest tax rates in Europe and plenty of tax incentives, educated and skilled workforce, EU candidate status, a strategic location – easy to reach Europe by land and exit to the Adriatic Sea, and much more.
Forming a company can make you eligible for the country’s residency if you want to go that path.
The country is the ultimate summer/winter home destination with excellent Mediterranean climate, amazing beaches, dramatic mountains and stunning views.
Picturing your spot in Montenegro? Reach out to us, and we’ll help you acquire your personal and corporate goals.
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/h4h4strongCorporate%20Income%20Taxes%20in%20Montenegro/strong/h4pEntities%20operating%20in%20Montenegro%20are%20subject%20to%20progressive%20corporate%20profit%20tax.%20Applicable%20tax%20rate%20depends%20on%20the%20realized%20profit%20and%20tax%20rate%20varies%20from%209%%20-15%./ppProgressive%20tax%20rate%20are%20as%20follows:/ppOn%20the%20profit%20up%20to%20EUR%20100,000,%20the%20tax%20rate%20is%209%%20fixed;/ppOn%20the%20profit%20from%20EUR%20100,000.01%20to%20EUR%201,500,000,%20the%20tax%20shall%20be%20paid%20in%20the%20amount%20of%20EUR%209,000%20fixed%20+%2012%%20on%20the%20profit%20above%20EUR%20100,000.01;/ppOn%20the%20profit%20above%20EUR%201,500,000,%20the%20tax%20shall%20be%20paid%20in%20the%20amount%20of%20EUR%20177,000%20fixed%20+%2015%%20on%20the%20profit%20above%20EUR%201,500,000.01./pp /ph3strong2. %20Easy%20Registration%20Process/strong/h3pThe%20company%20registration%20process%20in%20Montenegro%20is%20streamlined%20for%20foreign%20entrepreneurs,%20with%20low%20minimum%20capital%20requirements%20(1%20euro%20for%20LLCs)%20and%20accessible%20steps%20for%20small%20and%20medium-sized%20businesses.%20This%20makes%20starting%20a%20business%20in%20Montenegro%20a%20smooth%20experience./pp /ph3strong3. %20Strategic%20Geographical%20Position/strong/h3pBy%20establishing%20a%20company%20in%20Montenegro,%20which%20is%20sure%20to%20become%20a%20member%20of%20the%20European%20Union%20soon,%20it%20will%20become%20effortless%20to%20open%20up%20to%20the%20numerous%20business%20opportunities%20of%20the%20European%20Union%20through%20the%20Balkans.%20In%20addition,%20you%20will%20have%20the%20right%20of%20free%20movement%20in%20all%20European%20countries%20for%20yourself%20and%20your%20family./pimg%20width=677%20height=500%20src=https://vitanova.me/wp-content/uploads/2023/06/montenegro-map1.png%20alt=%20loading=lazy%20srcset=https://vitanova.me/wp-content/uploads/2023/06/montenegro-map1.png%20677w,%20https://vitanova.me/wp-content/uploads/2023/06/montenegro-map1-300x222.png%20300w,%20https://vitanova.me/wp-content/uploads/2023/06/montenegro-map1-447x330.png%20447w,%20https://vitanova.me/wp-content/uploads/2023/06/montenegro-map1-244x180.png%20244w%20sizes=(max-width:%20677px)%20100vw,%20677px%20/h3 /h3h3strong4. %20Numerous%20Membership%20Advantages/strong/h3pstrong /strongMontenegro%20has%20Free%20Trade%20Agreements%20with%20EU%20countries,%20EFTA%20countries,%20CEFTA%20countries,%20Turkey,%20Russia,%20and%20Ukraine.%20By%20establishing%20a%20company%20in%20Montenegro,%20you%20can%20benefit%20from%20the%20commercial%20advantages%20of%20all%20these%20agreements./pimg%20width=750%20height=496%20src=https://vitanova.me/wp-content/uploads/2023/08/agree.png%20alt=%20loading=lazy%20srcset=https://vitanova.me/wp-content/uploads/2023/08/agree.png%20819w,%20https://vitanova.me/wp-content/uploads/2023/08/agree-300x199.png%20300w,%20https://vitanova.me/wp-content/uploads/2023/08/agree-768x508.png%20768w,%20https://vitanova.me/wp-content/uploads/2023/08/agree-499x330.png%20499w,%20https://vitanova.me/wp-content/uploads/2023/08/agree-270x180.png%20270w%20sizes=(max-width:%20750px)%20100vw,%20750px%20/h3 /h3h3strong5. %20Residency%20Opportunity/strong/h3pWith%20opening%20a%20company%20in%20Montenegro,%20you%20have%20the%20right%20to%20obtain%20residency%20in%20Montenegro.%20This%20residency%20permit%20is%20issued%20for%201%20year%20time%20and%20can%20be%20extended.%20Also,%20family%20members%20(spouse%20and%20children%20under%2018%20years%20old)%20are%20allowed%20to%20obtain%20it.%20This%20opportunity%20led%20many%20business%20people%20to%20consider%20family%20relocation%20to%20this%20Mediterranean%20country./pp /ppMontenegro%20has%20all%20the%20elements%20of%20a%20business-friendly%20environment.%20It%20has%20one%20of%20the%20lowest%20tax%20rates%20in%20Europe%20and%20plenty%20of%20tax%20incentives,%20educated%20and%20skilled%20workforce,%20EU%20candidate%20status,%20a%20strategic%20location%20–%20easy%20to%20reach%20Europe%20by%20land%20and%20exit%20to%20the%20Adriatic%20Sea,%20and%20much%20more./ppForming%20a%20company%20can%20make%20you%20eligible%20for%20the%20country’s%20residency%20if%20you%20want%20to%20go%20that%20path./ppThe%20country%20is%20the%20ultimate%20summer/winter%20home%20destination%20with%20excellent%20Mediterranean%20climate,%20amazing%20beaches,%20dramatic%20mountains%20and%20stunning%20views./ppPicturing%20your%20spot%20in%20Montenegro?%20Reach%20out%20to%20us,%20and%20we’ll%20help%20you%20acquire%20your%20personal%20and%20corporate%20goals./p){kind=link}