Tax
Progressive corporate and personal rates with euro-denominated administration
Montenegro moved from flat taxation to progressive bands for both personal and corporate income, while remaining among the lower-tax jurisdictions in Europe. VAT applies at a standard and reduced rate, all in euro.
Key rules
- Corporate profits are taxed in progressive bands rather than at a single flat rate.
- Personal income above thresholds is taxed at higher marginal rates.
- Annual property tax is levied by municipalities within statutory ranges.
Governing law
- Personal Income Tax Act (Zakon o porezu na dohodak fizičkih lica)
- Corporate Profit Tax Act
In practice
The Europe Now programme abolished mandatory health contributions and raised the untaxed wage threshold, changing payroll materially.