--- title: "Montenegro tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/montenegro/tax/ lang: en updated: 2026-10-11 --- # Montenegro tax Tax residence: More than 183 days in tax year. 2 special regimes for new residents: Annual lump-sum income tax and Exemption from income tax and social contributions. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Tax residence - More than 183 days in tax year · Stay on Montenegrin territory of more than 183 days in the tax year makes a person resident. - Residence is decided by home, centre of life and business interests or presence of more than 183 days in the tax year. ## Special regimes for new residents Special regime ### Annual lump-sum income tax for small self-employed (turnover up to EUR 30,000) Tax relief **Details** - On: Annual lump sum set by the Ministry of Finance scale - Limit: €30k/yr ≈ $34k Self-employed persons whose previous-year turnover is below EUR 30,000.01 (≈ $33,500) can ask to pay income tax as an annual lump sum set by a Ministry of Finance scale. (sources 1, 2) #### Taxed on Annual lump sum set by the Ministry of Finance scale; no rate on actual profit. #### Who it applies to - Applies to income from the main self-employed activity of a person whose turnover in the previous year (or planned turnover at start) is below EUR 30,000.01 (≈ $33,500). - The taxpayer must apply by the end of the year for the next year, or within five days of registration when starting. - The taxpayer keeps books of turnover. #### Exclusions - Lawyers, notaries, auditors, accountants, health, consulting, design, surveying, hairdressing, trade, hospitality and real-estate activities, and other professional occupations, cannot use the lump sum. #### Limits - EUR 30,000 a year (≈ $33,500) · Turnover ceiling (turnover must be below EUR 30,000.01 (≈ $33,500)) #### Tax residence Available to taxpayers carrying on a registered self-employed activity in Montenegro. #### Visas Not tied to a permit; foreigners need a permit that allows self-employment. #### Other taxes Value added tax registration is required above EUR 30,000 (≈ $33,500) turnover; contributions are separate. Checked against official sources on 10 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/) Special regime ### Digital nomads: exemption from income tax and social contributions on income from an employer not registered in Montenegro Tax relief **Details** A person with digital nomad status under the Law on Foreigners pays no personal income tax and no mandatory social contributions on personal earnings or self-employment income from an employer that is not registered in Montenegro. (sources 14, 15, 16) #### Taxed on Personal earnings or self-employment income received from an employer not registered in Montenegro, by a holder of digital nomad status. #### Who it applies to - Holds a temporary residence permit as a digital nomad under Art. 60a of the Law on Foreigners. - Income is personal earnings or income from self-employment from an employer that is not registered in Montenegro. #### Exclusions - The provisions name only income from an employer not registered in Montenegro. - Value added tax, property taxes and taxes of the home country are not covered. #### Tax residence Tax residence follows the general test (permanent home, centre of life and business interests, or more than 183 days in the tax year); the exemption provisions set no separate day count. #### Visas Attached to the digital nomad temporary residence permit (Art. 60a of the Law on Foreigners). #### Other taxes The municipal surtax is calculated as a percentage of the income tax. Value added tax and taxes on property are separate. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Which visas the regimes apply to - **Exemption from income tax and social contributions**: [Digital nomad permit](https://settleanywhere.com/countries/montenegro/digital-nomad/). Attached to the digital nomad temporary residence permit (Art. 60a of the Law on Foreigners). ## Standard rules and foreign-source income Standard rules ### Personal income tax: residents taxed on worldwide income, rates 0 / 9 / 15% from 2026, plus municipal surtax and 10.5% employee contributions Up to 13% tax **Details** - On: Worldwide income of residents - Limit: €700/mo ≈ $780 Residents of Montenegro are taxed on income earned in Montenegro and abroad. From 1 January 2026 taxable employment income is taxed at 0% up to EUR 700 (≈ $780) a month, 9% from EUR 700.01 (≈ $780) to EUR 1,000 (≈ $1,120) and 15% above; employee social contributions are 10.5% (10% pension, 0.5% unemployment) and a municipal surtax of up to 13% of the tax (up to 15% in the Capital City and the Old Royal Capital) is added. (sources 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15) #### Taxed on Worldwide income of residents; Montenegrin-source income of non-residents. #### Who it applies to - A person is resident if they have a permanent home or centre of business and life interests in Montenegro, or stay more than 183 days in the tax year. - Taxable employment income is taxed monthly at 0% up to EUR 700, (≈ $780) 9% from EUR 700.01 (≈ $780) to EUR 1,000 (≈ $1,120) and 15% above EUR 1,000.01 (≈ $1,120). - Taxable income from the main self-employed activity is taxed annually at 0% up to EUR 8,400, (≈ $9,380) 9% from EUR 8,400.01 (≈ $9,380) to EUR 12,000 (≈ $13,400) and 15% above EUR 12,000.01 (≈ $13,400). - Other listed income categories, including supplementary and occasional self-employment, are taxed at 15% of the tax base. - Employee social contributions are 10.5% of gross pay: 10% pension and disability insurance and 0.5% unemployment insurance; there is no employee health insurance contribution, and the employer pays 0% pension and 0.5% unemployment. - Municipal surtax is a percentage of the income tax itself, not of income: municipalities may set up to 13% of the tax and the Capital City and the Old Royal Capital up to 15%; it is payable by the person carrying on activity in the municipality, on tax on personal earnings, self-employment, property and capital income. - Surtax rates set by municipal decision: Podgorica 15%, Cetinje 15%, and 13% in Bar, Kotor, Danilovgrad, Zeta and Bijelo Polje. #### Exclusions - Non-residents are taxed only on income earned in Montenegro. #### Limits - EUR 700 a month (≈ $780) · Employment income taxed at 0% up to this amount - EUR 1,000 a month (≈ $1,120) · Upper limit of the 9% employment income band - EUR 8,400 a year (≈ $9,380) · Self-employment income taxed at 0% up to this amount - EUR 12,000 a year (≈ $13,400) · Upper limit of the 9% self-employment income band #### Days in the country - More than 183 days in tax year · Stay on Montenegrin territory of more than 183 days in the tax year makes a person resident. #### Tax residence Residence is decided by home, centre of life and business interests or presence of more than 183 days in the tax year. #### Visas Immigration status does not set tax residence; a permit holder who stays more than 183 days in the tax year is resident for tax. Holders of digital nomad status have a separate exemption for income from an employer not registered in Montenegro. #### Other taxes Value added tax: standard rate 21% and registration required above EUR 30,000 (≈ $33,500) turnover in the last 12 months; a new VAT Law adopted in July 2026 applies only from Montenegro's accession to the EU. Employee contributions are 10.5% of gross pay; the municipal surtax is added to the income tax. Checked against official sources on 10 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/) ## VAT, social security and other taxes - Value added tax: standard rate 21% and registration required above EUR 30,000 (≈ $33,500) turnover in the last 12 months; a new VAT Law adopted in July 2026 applies only from Montenegro's accession to the EU. Employee contributions are 10.5% of gross pay; the municipal surtax is added to the income tax. - Value added tax registration is required above EUR 30,000 (≈ $33,500) turnover; contributions are separate. - The municipal surtax is calculated as a percentage of the income tax. Value added tax and taxes on property are separate. ## Questions people ask ### When do you become a tax resident in Montenegro? More than 183 days in tax year (Stay on Montenegrin territory of more than 183 days in the tax year makes a person resident). Residence is decided by home, centre of life and business interests or presence of more than 183 days in the tax year. ### Who qualifies for Annual lump-sum income tax? Applies to income from the main self-employed activity of a person whose turnover in the previous year (or planned turnover at start) is below EUR 30,000.01 (≈ $33,500). Not tied to a permit; foreigners need a permit that allows self-employment. ### Who qualifies for Exemption from income tax and social contributions? Holds a temporary residence permit as a digital nomad under Art. Attached to the digital nomad temporary residence permit (Art. ### Is there a tax break for Digital nomad permit holders in Montenegro? Digital nomads: exemption from income tax and social contributions on income from an employer not registered in Montenegro: A person with digital nomad status under the Law on Foreigners pays no personal income tax and no mandatory social contributions on personal earnings or self-employment income from an employer that is not registered in Montenegro. It's separate from the visa and has its own conditions. ≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated. **Sources (16)** ## Official sources 1. [Law amending the Personal Income Tax Law, rates from 1 January 2026 (Official Gazette of Montenegro 160/25)](https://www.sluzbenilist.me/propisi/389429/download) · Official Gazette of Montenegro No. 160/2025 · checked 2026-10-11 · published 2025-12-30 2. [Personal Income Tax Law, consolidated text](https://mia.gov.me/wp-content/uploads/8.-Zakon-o-porezu-na-dohodak-fizickih-lica.pdf) · Montenegrin Investment Agency, mia.gov.me · checked 2026-10-11 3. [Law on Contributions for Mandatory Social Insurance, consolidated text (OG 13/07 to 160/25), Articles 15 and 18: rates](https://amrrs.gov.me/wp-content/uploads/2026/03/Zakon-o-doprinosima-za-obavezno-socijalno-osiguranje-1.pdf) · Government of Montenegro (consolidated text hosted by amrrs.gov.me) · checked 2026-10-10 · published 2026-03-01 4. [Law on Financing of Local Self-Government (OG 3/19), Article 8: municipal surtax on personal income tax](https://zakoni.skupstina.me/zakoni/web/dokumenta/zakoni-i-drugi-akti/608/1899-11557-00-39-18-1-14.pdf) · Parliament of Montenegro · checked 2026-10-10 · published 2018-12-28 5. [Form OPP-ND: monthly return for the surtax on personal income tax, Capital City of Podgorica (rate 15%)](https://podgorica.me/wp-content/uploads/2023/10/605c94ab7de9d_Obrazac-OPP-%E2%80%93-ND-Mjesecna-prijava.doc) · Capital City of Podgorica, Local Public Revenue Administration · checked 2026-10-10 6. [Decision on the surtax on personal income tax, Old Royal Capital Cetinje (rate 15% of the tax liability)](https://www.cetinje.me/cetinje/cms/public/image/dokumenta/cd3916482da4f170c8638b80aa4fcc7c.pdf) · Old Royal Capital Cetinje · checked 2026-10-10 7. [Decision on the surtax on personal income tax, Municipality of Bar (rate 13% of the tax liability), OG CG municipal regulations 44/19](https://bar.me/wp-content/uploads/2022/10/Odluka-o-prirezu-porezu-na-dohodak-fizickih-lica.pdf) · Municipality of Bar · checked 2026-10-10 · published 2019-11-08 8. [Decision on the surtax on personal income tax, Municipality of Kotor (rate 13% of the tax liability)](https://www.investinkotor.me/files/documents/1706623746-Odluka%20o%20prirezu%20poreza%20na%20dohodak%20fizickih%20lica.pdf) · Municipality of Kotor · checked 2026-10-10 9. [Decision on the surtax on personal income tax, Municipality of Danilovgrad (rate 13% of the tax liability)](https://s3.eu-central-1.amazonaws.com/danilovgrad-media/files/1595277481-odluka-o-prirezu-porezu-na-dohodak-fizickih-lica.pdf) · Municipality of Danilovgrad · checked 2026-10-10 10. [Decision on the surtax on personal income tax, Municipality of Zeta (rate 13% of the tax liability)](https://zeta.me/me/dokumenta/download/824/Odluka-o-prirezu-porezu-na-dohodak-fizickih-lica.pdf) · Municipality of Zeta · checked 2026-10-10 11. [Decision on the surtax on personal income tax, Municipality of Bijelo Polje (rate 13% of the tax liability), consolidated text](https://gradjani.bijelopolje.co.me/images/zakoni/odluka-o-prirezu-porezu-na-dohodak-fizicki-lica.pdf) · Municipality of Bijelo Polje · checked 2026-10-10 12. [Law amending the Law on Value Added Tax, Art. 3 and 5: standard rate 21% from 1 January 2018 (Official Gazette of Montenegro 50/17)](https://www.sluzbenilist.me/propisi/336942/download) · Official Gazette of Montenegro No. 50/2017 · checked 2026-10-11 · published 2017-07-28 13. [Law amending the Law on Value Added Tax, Art. 13: registration above EUR 30,000 turnover (Official Gazette of Montenegro 12/26)](https://www.sluzbenilist.me/propisi/390426/download) · Official Gazette of Montenegro No. 12/2026 · checked 2026-10-11 · published 2026-02-05 14. [Law amending the Personal Income Tax Law, Art. 7: new Art. 32d, exemption for digital nomads (Official Gazette of Montenegro 152/22)](https://www.sluzbenilist.me/propisi/334487/download) · Official Gazette of Montenegro No. 152/2022 · checked 2026-10-11 · published 2022-12-30 15. [Law amending the Law on Contributions for Mandatory Social Insurance, Art. 6: Art. 18d, exemption for digital nomads (Official Gazette of Montenegro 160/25)](https://www.sluzbenilist.me/propisi/389470/download) · Official Gazette of Montenegro No. 160/2025 · checked 2026-10-11 · published 2025-12-30 16. [Law amending the Law on Foreigners (Official Gazette of Montenegro 3/2026)](https://www.sluzbenilist.me/propisi/389913/download) · Official Gazette of Montenegro No. 3/2026 · checked 2026-10-11 · published 2026-01-09