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

Progressive taxation has been implemented on both salaries and entrepreneurial income.

Salaries are taxed based on the following tax rates:

• Salaries up to 700 euros (EUR) (gross) are tax-exempt.
• Salaries between EUR 701 and EUR 1,000 (gross) are subject to 9% tax.
• Salaries exceeding EUR 1,000 (gross) are subject to 15% tax.

Entrepreneurial income is taxed based on the following tax rates:

• Earnings from EUR 8,400.01 to EUR 12,000 are taxed at 9%.
• Earnings exceeding EUR 12,000 are taxed at 15%.

Other categories of personal income 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.