Taxes in Montenegro: what a company owner pays

Corporate profit tax

Corporate profit tax is progressive:

You can try your own number in the illustration on the cost of company formation page.

VAT

VAT registration is mandatory when turnover reaches €30,000 in twelve months; before that it is voluntary. The standard rate is 21% and a reduced rate of 7% applies to some goods and services.

Payroll: taxes and contributions on salaries

If the company pays a salary, including the director’s salary, payroll taxes and contributions are paid every month. As summarised in public tax guides such as PwC Tax Summaries, the income tax on salaries is progressive and municipalities add a surtax, the employee pays pension and unemployment contributions, and the employer adds its own. The exact amounts depend on the salary and the municipality, so we calculate them for your case.

For a company director who applies for or renews a residence permit, the minimum director’s salary is €600 or €800 depending on qualification, and the company is expected to have paid about €5,000 in taxes and contributions over the previous year. See the director’s residence permit.

Tax residency

If you spend more than 183 days in Montenegro in a year, you may become a Montenegrin tax resident, which can bring your worldwide income into the Montenegrin system. Digital nomads may be exempt on income from abroad. This is an area where we calculate with your data and, where needed, tell you to ask a tax lawyer.

What our accounting covers

• Monthly reports and payment of taxes and contributions.
• Payroll, including the director’s salary.
• Annual financial statements and the tax return, by 31 March.

See accounting services.

Last reviewed: 3 October 2026.