"Starting a business in Montenegro: an important financial and economic opportunity""

This article discusses the advantages and requirements of establishing a business in Montenegro, as well as the most popular business structures in Montenegro among foreigners.

Montenegro Country Overview

In its current form, Montenegro is a very young country as its citizens voted for the division of the Union state of Serbia and Montenegro in2006. The population is projected to be628,281 people by2023. More than150,000 of them live in the capital of Podgorica, and about a tenth of that number in Cetinje, the old royal capital. Cetinje is located at the foot of Mount Lovcen, which is about1749 meters high and from which the country received its name.

Montenegro - climate climate

Montenegro is a popular tourist destination thanks to its Mediterranean climate. Dry summers are followed by cool, but not cold, winters—except in the northern mountains, where temperatures can drop to -2°C during the holiday months.

Montenegro - economy

Tourism has replaced agriculture as a significant sector in Montenegro. The euro has been the country's currency since 2002, and the World Bank recognizes Montenegro as one of the fastest-growing economies in the Balkans. Currently, the country has candidate status for EU membership and continues to strictly adhere to all EU directives. Given this, it is fair to assume that Montenegro will join the EU in a few years. Once that happens, any investments in the country will yield substantial returns.

Advantages of starting a company in Montenegro

Montenegro, a candidate for EU membership, is a member of NATO and is expected to join the European Union in 2025. However, the country's economic stability means that you can enjoy access to a market of around 800 million consumers thanks to free trade agreements. Montenegro's coastline and proximity to the Mediterranean region have earned it the nickname "Gateway to the Balkans." Additionally, the country uses the euro as its currency, making it a convenient base for corporations from Europe.

Low tax jurisdiction

Montenegro has some of the lowest tax rates in Europe. Taxes on individuals and legal entities are levied at progressive rates ranging from 9% to 15%. The tax-free portion of salary is €700 - the lowest among European countries. Moreover, non-residents only pay taxes on income earned in Montenegro.

The convenience of starting a company

Setting up a company in Montenegro is quick and straightforward. The country offers numerous tax benefits and exemptions, especially for investors and entrepreneurs, with the establishment of business and free economic zones in certain areas. For example, if you set up a manufacturing company in an economically underdeveloped region, you may receive an exemption from corporate tax for eight years. Additionally, you will have access to a skilled local workforce that speaks English for hiring.

Agreements on the avoidance of double taxation

The country has signed agreements to avoid double taxation with countries such as France, Germany, and the United Kingdom. Additionally, Montenegro boasts the highest foreign direct investment in the region.

The way to the residence in Montenegro

You can obtain a residence permit in Montenegro by opening a company. Another way to gain the right to permanent residence in Montenegro is to purchase real estate. However, starting a business no longer qualifies you for Montenegrin citizenship. Establishing a company was one of the pathways in the citizenship by investment program in the country, which ended in 2022.

Requirements for setting up a company in Montenegro

The most common forms of companies in Montenegro are limited liability companies (LLC) and joint-stock companies (JSC). Standard practice requires that the main applicant provide a certificate of no criminal record and a valid passport.

Establishment of a limited liability company in Montenegro

The law on business organizations defines the establishment of a limited liability company.

Establishment of a joint stock company in Montenegro

LLCs can be converted into joint-stock companies. However, if foreign investors start with a joint-stock company, the steps they need to take are similar to those for creating an LLC. The minimum initial capital required for a joint-stock company is at least €25,000.

Should one create a company in Montenegro?

Montenegro has all the elements of a business-friendly jurisdiction. It has some of the lowest tax rates in Europe, numerous tax incentives, an educated and skilled workforce, EU candidate status, a strategic location on the Adriatic coast, and much more. Moreover, starting a company can make you eligible for residency in the country if you choose that path. The country is an ideal summer vacation spot with a beautiful Mediterranean climate, beaches, and picturesque views. Can you imagine your place in Montenegro? Contact us, and we will help you achieve personal and corporate freedom in Montenegro.

Questions and answers about starting a company in Montenegro

Is Montenegro a good place to start a business?

Yes. Montenegro attracts direct foreign investments due to its business-focused economy and low corporate tax rate. Montenegro is a safe country for investments, enjoying excellent economic freedom and currency stability. The country is also a candidate for EU membership and strictly adheres to EU directives.

Is there citizenship by investment in Montenegro?

No. Foreign investors can no longer be granted citizenship through investments in project development. There was an opportunity to obtain Montenegrin citizenship and a Montenegrin passport until December 2022 by contributing funds to developing areas. You could participate in the Montenegrin citizenship program by investing in real estate. Investment options ranged from €250,000 for projects in the northern or central regions of Montenegro to €450,000 in the coastal region.

Is Montenegro a tax haven?

No. Montenegro is not a traditional tax haven. However, the country has some of the lowest tax rates in Europe, ranging from 9% to 15%.

How much does an investment in Montenegro cost?

You can create a new LLC for just €1. We can help you not only with setting up a company in Montenegro and other countries. Our comprehensive plans cover everything from the possibility of obtaining citizenship to identifying business opportunities in the local market. Let us take the headache out of bureaucracy for you.