Apart from being one of the most beautiful countries in Europe, Montenegro is also a dynamic and competitive destination with a great deal of potential. The country has a clear objective of developing a well-grounded tourism portfolio based on its beautiful natural resources, but the potential business opportunities don’t stop there, as Montenegro shows continuous growth in various sectors. It has become a favorite option for foreign investors in recent years, and here is everything you need to know about investing in Montenegro if you want to seize this opportunity as well:
In 2020, Montenegro recorded a GDP of €4.3 billion, along with a Foreign Direct Investment (FDI) of over $450 million, clearly demonstrating that foreign professionals are attracted to investing in this country. Montenegro offers a liberal regime of foreign trade, a legal framework reformed according to the EU, political stability, as well as the monetary stability of the local Euro (EUR) currency, despite the country’s non-EU status. Montenegro has made significant progress in terms of economic and social development over the last few decades, proving to be a safe, stable, and economically viable country with plenty of growth potential.
The corporate tax in Montenegro is based on tax residency, meaning that registering a company in this country can offer quite low tax rates. The corporate income tax rate here is 9%, among the lowest in Europe, and the withholding taxes applied to interest and dividend payments are set to 9% as well. Montenegro also offers some of the lowest real estate taxes on the continent, ranging from 0.1% to 5% depending on the property value, while the value added tax (VAT) in the country is 19%. Montenegro has also signed over 40 double taxation avoidance treaties, allowing foreign investors to benefit from tax exemptions and reductions.
Being a country with a stunning shoreline, coastal properties are among the wisest investments you can make here, with possibly the highest ROI. What’s more, you can easily find apartments available for sale in Montenegro with plenty of renting and reselling potential. Seaside apartments are always in demand, especially during the high season. Apart from attractive properties and the tourism sector in general, the agriculture, energy, banking, mining, and maritime sectors also present great investment opportunities in this European country.
The Montenegrin government also offers a number of financial incentives to both local and foreign investors according to the value of their investment. For instance, investments larger than €500,000 that generate at least 20 new jobs within the first three years can give you access to cash grants ranging from €3,000 to €10,000 per each new job created. In the Central and North regions, on the other hand, this applies to investments greater than €250,000 that create at least 10 new jobs. For capital investments over €10 million with a threshold of 50 new jobs created, incentives ranging up to 17 % of the investment value could be granted as well.
Apart from low corporate tax rates, there are many other factors that attract foreign investors to Montenegro. The process of registering a business here is quite quick and simple, easily completed in a matter of days, while foreign entrepreneurs receive equal treatment in the country, being able to access most alluring industries. The economic stability in Montenegro also provides a safe business environment, the workforce is fairly young and highly educated, and the high-quality infrastructure is well-connected with other important parts of Europe, making for a great investment opportunity overall.
Montenegro is truly a magnet for investment. While there are a number of benefits to be enjoyed when investing in this country, the low tax rates and investment incentives alone make investing in Montenegro a wise choice.
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