Montenegro

Taxation of individuals’ income in Montenegro is based on their residence status.

Resident individuals are subject to tax on their worldwide income from any source, whereas non-residents individuals are taxed on Montenegrin-sourced income.

Personal income tax (PIT) rates

Salaries are taxed based on the following tax rates:

• Salaries up to EUR 700 (gross) are subject to 0% tax;
• Salaries between EUR 700.01 and EUR 1,000 (gross) are subject to 9% tax;
• Salaries exceeding EUR 1,000.01 (gross) are subject to 15% tax.

Entrepreneurial income is taxed based on the following tax rates:

• Earnings up to EUR 8,400.00 are subject to 0% tax;
• Earnings from EUR 8,400.01 to EUR 12,000 are taxed at 9%;
• Earnings exceeding EUR 12,000.01 are taxed at 15%.

Income from games of chance are taxed at the following tax rates:

• Winnings up to EUR 50,00 are subject to 0% tax;
• Winnings between EUR 50.01 and EUR 1,500.00 are subject to 10% tax;
• Winnings exceeding EUR 1,500.01 are subject to 15% tax.

Other categories of personal income subject to PIT are taxed at a proportional 15% rate.

Local surtax

In addition to PIT, a local surtax is levied and payable to the municipality where the taxpayer is domiciled. A surtax rate of 13% applies in all municipalities, except Podgorica and Cetinje, where the rate is 15%.

The surtax base is calculated based on the amount of PIT assessed.