Page 41 - CEE Tax Guide 2025

transfer of real estate, except for the first transfer
VAT options
in Montenegro Applicable / limits of ownership rights and other.
Distance selling No Taxpayers with revenues in excess of EUR 30,000
must register for VAT purposes. The options/limits
Call-off stock No
are based on the VAT Act in Montenegro.
VAT group registration No
The other indirect tax type in Montenegro
Cash accounting – yearly No
amount in EUR (approx.) is excise duty.
Import VAT deferment No Personal income tax /
Local reverse charge Social security system
Option for taxation
In Montenegro, resident individuals are taxed based
letting of real estate No
on their worldwide income, and non-residents are
supply of used real estate No taxed only on income derived from Montenegro.
VAT registration EUR 30,000/year Montenegro has progressive taxation for salaries
threshold (taxed at the rate of 0% / 9% / 15%) and income
stemming from self-employment (taxed at a rate
drinking water (except bottled watter), public of 9% or 15%). There is also a flat rate of 15%, which
hygiene service, baby diapers and other. is applicable for other sources of income (e.g. capital
Furthermore, starting from 2025 a reduced VAT gains, interest, etc.).
rate of 15% has been introduced for the supply Active incomes fall under the scope of the SSC
of accommodation services, services of preparing system: an individual’s social contributions equal
and serving food, drinks and beverages, except 10.5% altogether. These include contributions
alcoholic beverages and other.
for pensions (10%) and unemployment
A 0% VAT rate is applicable on export of goods, (0.5%). The employer’s contribution is at a rate
services related to the export of goods, vessels of 1.17% of an employee’s salary. This includes
intended for navigation on the open sea, unemployment insurance (0.5%), and contributions
which transport passengers for a fee, personal to the Chamber of Commerce (0.27%) Labor
needs of foreign staff, diplomatic and consular fund (0.2%) and Labor union fund (0.2%). Also,
representative offices, supply of goods to free a local surtax, calculated based on PIT assessed,
zones and other. is paid by the employer to the municipality of the
taxpayer’s seat. Surtax rates range from 10% to 15%,
VAT-exemption is available for public postal services, depending on municipality, with most municipalities
health services, social security services and the having a 13% rate.
supply of goods directly related to these services,

Wage related taxes in Montenegro Minimum wage Average wage in private sector
in EUR in EUR
503 1,182
Total wage cost 509 101.00% 1,198 101.00%
SSC 5.88 1.00% 16.44 1.00%
Gross salary 503 100.00% 1,182 100.00%
PIT and SSC 52.79 10.00% 178.50 15.00%

Net salary 450 90.00% 1,004 85.00%

Pere Mioč
Partner, Tax Advisory Services
Phone: +385 (0)99 736 8746
E-mail: pere.mioc@forvismazars.com

Central and Eastern European tax guide 2025 Forvis Mazars 41