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Montenegro tax guide 2026
Montenegro is one of Europe's lowest-rate tax systems: salaries are tax-free up to EUR 700 a month, then pay just 9% and 15%, capital income settles at a flat 15%, and employee social security is only 10.5% — with no health charge since 2022 and almost no employer contributions since late 2024 (a 0.5% unemployment share remains). Old-age pensions are exempt, main-home sales are untaxed, and inheritance tax (3-6%) touches only Montenegrin real estate passing outside the close family.
- Rate range
- 0% – 15% (+13-15% municipal surtax on the tax)
- Key allowance
- First EUR 700 of monthly salary (EUR 8,400 a year) tax-free
- Tax year
- Calendar year
- Filing deadline
- 30 April; only income not settled by withholding needs a return
Taxes covered
- Income tax15%
Three bands — 0%, 9% and 15% above EUR 1,000 a month — plus a municipal surtax of 13-15% of the tax.
- Dividend tax15%
Dividends carry a 15% final withholding for residents and non-residents alike — no further tax, no return.
- Capital gains tax15%
Gains on property, shares and participation rights pay a flat 15% by assessment — with the main home, marriage-related transfers and first-degree family gifts exempt.
- Crypto tax15%
No dedicated crypto rules exist — disposal gains are read into the flat 15% capital regime, with business-scale trading taxed as entrepreneurial income.
- Social security10.5%
Employees pay 10% pension and 0.5% unemployment insurance — no health charge since 2022, and employers pay only a 0.5% unemployment share since late 2024.
- Inheritance tax3% – 6%
Only Montenegrin real estate is caught, at 3-6% progressive — and children, spouses and parents are fully exempt.
- Withholding tax15%
A flat 15% withholding covers dividends, interest, royalties and rents paid to non-residents — and most resident capital income too.
Special regimes
- Salaries taxed at 0/9/15%
Nothing on the first EUR 700 a month, 9% to EUR 1,000, 15% beyond — among the lowest wage taxes in Europe.
- Flat 15% on capital
Dividends, interest, rents, royalties and capital gains all settle at 15%, usually withheld at source.
- Pensions tax-free
Retirement pensions carry 0% income tax (public servants' pensions excepted).
- Main-home sales exempt
Selling your only and main residence produces no taxable gain, and property gifted to first-degree relatives is exempt too.
- Cheap self-employment
Small entrepreneurs with turnover up to EUR 30,000 can pay a fixed lump-sum tax bundle of roughly EUR 413 to 3,984 a year.
Recent changes
- 2025-01The lump-sum regime for the self-employed widened — the turnover ceiling rose from EUR 18,000 to EUR 30,000.
- 2024-10Employer pension contributions fell to 0% in October 2024, but a 0.5% employer unemployment contribution remains — employer charges were reduced, not abolished.
- 2024-01Inheritance and gift tax on Montenegrin real estate became progressive: 3% to EUR 150,000, 5% to 500,000 and 6% above — close family remains exempt.