Montenegro » Taxes

Corporate Income Tax	Capital Gains	Property Tax	Property Transfer  Tax	Vat

Corporate Income tax

Corporate Income Tax is charged at the standard rate of 9% on the profits of Montenegro local companies and non-resident entities working through a permanent institution in Montenegro. 

Rental income resulting from nonresident entities in connection to property located in Montenegro is subject to withholding tax at the standard rate of 15%, subject to the provisions of any applicable double taxation treaties.

Capital Gains

Capital gains realised by companies occupant in Montenegro on the discarding of real estate located in Montenegro are subject to Corporate Income Tax at the standard rate of 9%.  Such gains realised by non-residents are subject to 15% withholding tax.

Property tax

An annual property tax of between 0.08% and 0.8% is levied on the book value (as at 31 December of the preceding year) of real estate located in Montenegro.  In most cases, the tax rate on buildings is 0.2%.  This tax is to be paid in two installments during the year.

Property Transfer tax

Property transfer tax at 2% is to be paid by the buyer on the purchase of Montenegrin property, except on the transfer of newly built property .The transfer of property in Montenegro is free from property transfer tax if the property is contributed as equity on the first incorporation or raise in capital of a company or is transferred as part of a merger, corporate acquisition, or division of an existing company.

VAT

Transfer of recently built property situated in Montenegro is subject to VAT at the rate of 17%. Residential Property in Montenegro acquired on lease is not subject to VAT.