Tax Services
Tax preparation, advice, and compliance services for expats in Montenegro.
Overview
Understanding the tax system in Montenegro is crucial for any expatriate, whether you're working, running a business, or simply residing in the country. Montenegro has a relatively straightforward tax regime, but international considerations and local compliance can be complex. This page provides essential information on Montenegrin taxation and guidance on finding qualified tax advisors to ensure you meet your obligations.
Montenegrin Tax System (Overview)
- Official Currency: Euro (€).
- Tax Authority: Tax Administration of Montenegro (Poreska uprava Crne Gore)
- Tax Year: Calendar year (Jan 1 – Dec 31).
- Residency for Tax Purposes: Tax resident if you spend >183 days/year or have your center of vital interests in Montenegro. Residents taxed on worldwide income; non-residents on Montenegro-sourced income only.
Key Taxes for Expats
- Personal Income Tax: Progressive rates (typically 9–15%). Applies to employment, business, rental, capital gains, etc.
- Social Contributions: Employees and employers contribute to pension, health, and unemployment funds (deducted from salaries).
- Property Tax: Annual tax on real estate, levied by municipalities (0.25–1.0% of market value).
- Value Added Tax (VAT): Standard rate 21%. Reduced rates (7%, 0%) for some goods/services.
- Capital Gains Tax: Flat rate (e.g., 9%) on profits from sale of real estate, shares, etc.
- Inheritance & Gift Tax: Rates vary; close relatives often exempt or pay lower rates.
Tax Advisors & Preparation Services
- Importance: International income, residency, and deductions can be complex. Engage a qualified tax advisor or accountant.
- Finding a Tax Advisor: Look for specialists in international taxation or those with expat experience. Ensure English proficiency. Services include tax registration (PIB/TIN), tax return preparation, residency advice, DTA guidance, business/self-employed advice, property/capital gains, and more.
- Fees: Discuss fees upfront (hourly, fixed, or retainer-based).
Compliance Help & Important Considerations
- Tax Identification Number (PIB): Needed for work, banking, business, or property. Advisors can assist with this.
- Double Taxation Agreements (DTA): Montenegro has DTAs with many countries to prevent double taxation. Your advisor can interpret these.
- Reporting Foreign Accounts: Your home country may require reporting (e.g., FBAR/FATCA for US citizens).
- Deadlines: Annual tax returns usually due by late April for the previous year.
- Record Keeping: Maintain accurate records of all income, expenses, and transactions.
Official Resources
Disclaimer: This page provides general guidance. Tax laws and regulations can change. Always consult with a qualified tax professional for specific advice.