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Withholding tax in Montenegro 2026
Montenegro keeps withholding simple: 15% on dividends, interest, royalties and rental income paid by local entities, final for non-residents and mostly final for residents.
Where no local payer exists — foreign income — the recipient self-declares and pays within 5 days.
At a glance
- top rate
- 15% across capital income classes
- entry band
- 0% on small private-loan interest (under EUR 5,000/year)
- tax year basis
- Withheld per payment
- filing deadline
- Return needed only where withholding was impossible
- residency basis
- Montenegrin-source payments
- regime flag
- Treaty rates override; the treaty network is broad for the region
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 15% | Gross | Dividends and interest — final |
| 15% | Gross, after 30-60% lump-sum deductions | Royalties, copyright and related rights paid by legal entities |
| 15% | Gross, after 30-70% lump-sum deductions | Rental income paid by legal entities |
| 0/9/15% | Monthly salary | Employment income of non-residents working in Montenegro — same scale as residents |
Withholding residents meet (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0/9/15% | Monthly salary | Employer payroll withholding |
| 15% | Gross | Dividends, interest, royalties, rents and other income paid by entities — final or provisional by class |
| Self-paid | Foreign income | Declared and paid by the recipient within 5 days of receipt |
Residency
Residency trigger
Withholding by the paying entity is the collection backbone; individuals paying other individuals generally fall outside it, pushing the income into the annual return.
Non-resident treatment
Non-residents file only for Montenegrin income on which no withholding was taken; treaty relief follows the standard certificate route.
Notes
- The 5-day self-declaration rule for foreign income is unusually tight — expats with foreign dividends should diarize it.
- Non-employed directors' fees fall under 'other income' at the flat 15%.
- Sports, gaming and prize income carry the same flat 15% treatment.
- There is no advance-ruling system — written opinions from the Finance Ministry are the closest substitute.
FAQ
What withholding applies to non-residents in Montenegro?
A flat 15% on dividends, interest, royalties and rents from Montenegrin payers — final, with treaty rates overriding where lower.
How is foreign income declared in Montenegro?
By the recipient personally, within 5 days of receiving it — there is no employer or bank to withhold on foreign payments.
Figures: tax year 2026, compiled from public sources. Not tax advice.