Montenegro – Personal Taxation 2019

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TAX RESIDENCY – INDIVIDUALS:

  • Tax Resident of Montenegro is individual that has Montenegro residency or Montenegro is center of his business and personal interest.
  • Tax Resident of Montenegro is individual that spends in Montenegro above 183 days during calendar year
  • Both income gained in Montenegro and worldwide tax will be subject to taxation

Income that is NOT CONSIDERED AS taxable income:

  • Pensions
  • Income from insurance
  • Income from Social welfare
  • Income from Games of Chances

RESIDENCE AND CITIZENSHIP – BENEFITS AND ADVANTAGES

Montenegro Citizenship-by-Investment Program is closed but maybe in the near future, will be also another option which will allow payment to Government Fund, after first obtaining permanent residency. Montenegro offers also low tax policy for established businesses and individual incomes , visa-free travels in more than 99 countries such as European Union, Russian Federation and Switzerland. Montenegro is an official future candidate for EU and NATO membership and a full member of UN and WTO organizations

Personal taxation basis: Residents individuals are taxed on their worldwide income: nonresidents are taxed only on Montenegro-source income.

Tax Residence: An individual is resident if he/she is in Montenegro for 183 days or more in a calendar year or if his/her center of vital interest is in Montenegro.

Filling status: Joint returns are not permitted.

Income tax rates in Montenegro: Taxable income comprises income from employment, business and professional income, investment income ( dividends, interest and royalties ) and income from immovable property.

Social security payments in Montenegro: Social security contributions due by an employee are levied at a rate of 24%. These include contributions for pensions (15%), health (8,5%) and unemployment (0,5%). The employer also must make a contribution. The maximum base for contributions in the calendar year is EUR 50 000. Benefits provided to employees in addition to the basic salary are exempt from social security contributions.

Inheritance/estate tax in Montenegro: A 3% tax is levied on the inheritance of real estate. An exemption is available for the transfer of property as a gift or inheritance to children, parents or a spouse.

Net wealth/net worth tax in Montenegro: No

Tax year: Calendar year

 

COUNTRIES – MONTENEGRO – MOVING TO MONTENEGRO – PERSONAL TAXATION

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