10 advantages of setting up a company in Montenegro
In recent years, Montenegro has become a popular destination for entrepreneurs looking for an economically attractive location for their company. The country not only offers tax and legal advantages, but also a strategically favorable location on the Adriatic coast. In the following, we look at the most important advantages of setting up a company in Montenegro and show why more and more entrepreneurs are considering this location.
1. tax advantages
One of the biggest advantages of setting up a company in Montenegro is the attractive tax system. With a corporate tax rate of only 9%, Montenegro is one of the countries with the lowest tax rates in Europe. For entrepreneurs, this means considerable tax savings compared to other countries, leaving more funds available for investment and growth.
Overview of the most important taxes
The tax rates in Montenegro are not only low, but also clearly structured. Here is a table of the most important corporate taxes:
| Steuerart | Steuersatz | Bemerkung |
|---|---|---|
| Corporation tax | 9 % | One of the lowest rates in Europe |
| Value added tax (VAT) | 21 % (normal) | Reduced rates for certain goods and services |
| Income tax | 9 % – 15 % | Depending on personal income |
| Capital gains tax | 9 % | Tax on gains from capital investments |
| Social security contributions | 15 % – 20 % | Employer and employee share |
| Trade tax | None | No additional tax for traders |
These low tax rates are a key factor in the many advantages of setting up a company in Montenegro and create an extremely business-friendly environment.
2. low expenses for employees
Wage costs and social security contributions for employees in Montenegro are very low compared to Western Europe. Social security contributions for employers are only 15 % to 20 %, which means that the total costs for an employee are significantly lower than in other European countries. An average employee costs a company between 500 and 1,000 euros per month, which is another advantage of setting up a company in Montenegro, especially for companies that need a skilled workforce at a moderate cost.
3. favorable rents for commercial properties
Rental prices for commercial real estate in Montenegro are extremely affordable compared to many other countries. Whether in the capital Podgorica or in the coastal towns, the cost of office and business premises is low, which further reduces fixed costs for companies. This financial advantage allows entrepreneurs to work cost-effectively, which is another advantage of setting up a company in Montenegro.
4. strategic geographical location
Montenegro is located on the Adriatic coast and offers excellent access to the markets of Southeast Europe, Central Europe and the Mediterranean region. This location makes Montenegro particularly interesting for companies that want to operate in both Europe and the Balkans. The connection to international transportation routes, ports and airports ensures efficient logistics, which is another advantage of setting up a company in Montenegro, especially for trading and export companies.
5. simple and fast company formation
Another advantage of setting up a company in Montenegro is the fast and uncomplicated incorporation process. A company can be officially registered within a few days and there are no high bureaucratic hurdles to overcome. There are also no minimum start-up capital requirements, which is particularly attractive for start-ups and small companies.
6. no start-up capital and no turnover required
In Montenegro, it is possible to set up a company without the need for start-up capital. This is a decisive advantage for entrepreneurs who are unable or unwilling to raise large financial resources. In addition, it is not necessary to generate sales immediately. This flexibility offers entrepreneurs the time and space to build up their business without being under immediate financial pressure – an important advantage of starting a company in Montenegro.
7. prospect of EU accession
Montenegro is already an official candidate for EU accession and negotiations are progressing. Accession to the European Union would not only facilitate access to EU markets, but also further strengthen the country’s economic stability. For companies, this means additional security and new business opportunities. Entrepreneurs who become active in Montenegro at an early stage can benefit from these long-term advantages of setting up a company in Montenegro.
8 SEPA Direct Debit Scheme from January 2025
From January 2025, Montenegro will join the SEPA direct debit scheme, which will significantly simplify payment transactions within Europe. This will enable companies in Montenegro to process cross-border payments within the SEPA area faster and more cost-effectively. This connection to the SEPA scheme is a further advantage of setting up a company in Montenegro, as it facilitates international payment transactions.
9. no trade tax and broad field of activity
Montenegro does not levy business tax, which further reduces the tax burden for companies. In addition, companies are automatically assigned a wide range of commercial activities, allowing them to operate in multiple sectors without additional permits. This administrative advantage is another significant benefit of setting up a company in Montenegro, as it offers entrepreneurs maximum flexibility and cost efficiency.
10. residence permit through employment as managing director
A particularly attractive advantage of setting up a company in Montenegro is the possibility of obtaining a residence permit in Montenegro by founding a company and becoming a managing director. This is a decisive factor for many foreign entrepreneurs who plan to live and work in Montenegro permanently. The residence permit not only provides legal security, but also access to all the benefits of living in Montenegro, such as a pleasant climate, low cost of living and a high quality of life.
Conclusion
The advantages of setting up a company in Montenegro are many and convincing: low taxes, low wage costs, low rents and a simple start-up process make the country an attractive location for companies. In addition, the strategic location, the imminent connection to the SEPA system and the prospect of joining the EU offer interesting long-term prospects. Montenegro offers a flexible and business-friendly environment that enables companies to operate efficiently and profitably.
Are you also interested in setting up a company in Montenegro?
We will support you so that the process runs quickly and smoothly for you. You can also contact us directly on +382 (0)69 – 209 925 or alternatively send us a message using the contact form.
More detailed information
We have written a more detailed overview on our homepage “Emigrating to Montenegro”, where you can find all the information you need about setting up a company in Montenegro. You are welcome to read more about it there.
