Business environment

Information on Foreign Investments in Montenegro

The foreign person is foreign legal body domiciled abroad, foreign physical body (person, foreign citizen, entrepreneur) Montenegrin citizen with the temporary address abroad (more than one year permanently), as well as the company in which the foreign capital share is over 25% and the company which was formed in Montenegro by the foreign person;

The foreign person invests money, things, equipment, ownership rights, services or shares.

The foreign person (foreign investor) can organize his/her own company or “mixed-company” (with domestic companies and/or citizens), or invest in an already-existing domestic company.

Foreign investments are possible in almost all sectors.

In the case of the legal change (new law), only the more favourable provisions affect the foreign investor (business privilege clause).


All import of things and equipment in the form of investment (foundation) capital, is liberated from the custom (with the exception for cars and casino machines).

The financial transfer of capital, towards the foreign (physical or legal) body abroad, is free (after all the duties and obligations in Montenegro are paid), on the basis of:

  • the return (repatriation) of the investment, after the cancellation of the business activities or sale of the company;
  • profit gained;

The foreign investment should be registered at the Commercial Court level and all formal (new capital, status, owners and their relationship) changes should be duly notified (registered);

The foreign companies can be registered as a Joint Stock Company or as a Limited Liability Company.  In the case of Joint Stock Company is being registered, the foundation capital (deposit which can be used immediately) is 25,000.00 €.  For the Limited Liability Companies, the deposit is a minimum of 1.00 €.

  • An average net-salary in Montenegro is cca 511 €
  • The executive director has to be fully employed in the Company with minimum net-salary of cca 200 € (so-called General Collective Contract of Trade Unions)
  • Salary taxes are being paid in the ratio of 1:0,7 which means that 100 € of net-salary bears the 65 € of taxes
  • The minimum wages are regulated – cca 193 €.  Upper limits do not exist
  • The profit tax rate is 9%
  • Withholding Tax is 9%
  • The commercial duty rate for most products is 0%, 7% and 21% (VAT)
  • Services duty rate is 0%, 7% and 21% (VAT)
  • Customs (average rate – 7%)

Tax overview 2017 (download pdf)