Montenegro

Tax incentive for self-employed individuals in a underdeveloped region

A self-employed individual who starts a business in an underdeveloped municipality is entitled to an eight-year tax credit. The tax credit for eight-year period is capped at EUR 200,000.

This relief is not available to taxpayers operating in the sectors of (i) transport, (ii) shipbuilding, (iii) steel production, (iv) trade, and (v) the hospitality industry, except for primary hospitality businesses.

If this self-employed individual employs another person on a permanent basis or on a term of at least five years, they will be eligible for a four-year payroll tax credit  for that employee.

R&D incentives

The tax relief is granted to beneficiary of R&D subsidies for employed or engaged individuals in accordance with the legislation regulating R&D subsidies.

Tax incentive for digital nomads

The tax exemption is provided for income from self-employment or independent activities earned by digital nomads from an employer who is not registered in Montenegro. The status of digital nomad can be acquired in accordance with the law governing the stay and work of foreigners.