Montenegrin taxation system has been recently in process of reconciliation with legislation of European countries. With the Association agreement Montenegro committed to reconcile national legislation with legal assets of European Union.
If we look back at international agreements about avoiding double taxation, nowadays Montenegro has got 41 tax treaties.
Together with EU countries Montenegro has 23 signed tax treaties of possible 28 (except with Spain, Portugal, Estonia, Luxembourg and Lithuania).
The applicable tax rates in Montenegro according to realized incomes from various sources are following:
1. Income tax of legal entities / corporate tax - 9% for realized profit from 100.000€, 12% from 100.000€ - 1.500.000€ and 15% over 1.500.000€,
2. Value added tax / sales tax (indirect tax) - 21%,
3. Personal income tax - 15%,
4. Social security at the expense of the employees - 0,50%,
5. Social security at the expense of the employer - 10,50%,
6. Tax on wages – exempt the wages under 700€ gross, 700€ - 1.000€ 9%, over 1.000€ 15%,
7. Tax on purchase of real estate - 3%.
