Company Formation & Tax in Montenegro
A euro-using EU candidate on the Adriatic — the d.o.o., a low progressive corporate tax and €1 minimum capital.
Montenegro is the most advanced Western Balkan candidate for EU membership and already uses the euro as its currency, so a Montenegrin company trades in euros without exchange-rate risk. Its corporate tax is progressive but starts low, which suits lean and reinvesting businesses.
Choosing an entity
The standard vehicle is the d.o.o. (DOO, private limited company), which can be formed with just €1 of share capital. Registration is handled by the CRPS (Central Registry of Business Entities), typically within roughly seven to ten working days, after which the company registers with the Revenue and Customs Administration for tax. Foreign owners and directors face no residency requirement, and the company can be used to support a temporary residence and work permit.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Profit up to €100,000 | 9% |
| Profit €100,000 – €1.5m | 12% |
| Profit above €1.5m | 15% |
| VAT (standard) | 21% |
| VAT registration threshold | €30,000 |
Corporate income tax is progressive: 9% on profit up to €100,000, 12% on the slice from €100,000 to €1.5m, and 15% above €1.5m — among the lowest effective rates in Europe for smaller companies. VAT is 21% standard, with reduced rates of 7% and 15%; registration is mandatory once turnover exceeds €30,000 in any twelve-month period, and once registered a company cannot deregister for at least three years. Dividends generally carry a 15% withholding tax (with a local surtax that lifts the effective rate slightly), rising to 30% for payments to non-cooperative jurisdictions.
Frequently asked questions
What is the corporate tax rate in Montenegro?
Progressive: 9% on profit up to €100,000, 12% from €100,000 to €1.5m, and 15% above €1.5m.
How much capital do I need for a Montenegrin d.o.o.?
€1 minimum share capital.
What is the Montenegrin VAT rate?
21% standard, with reduced rates of 7% and 15%; registration applies above €30,000 turnover.
Official sources
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rules and thresholds change. Confirm against the Revenue & Customs Administration, or with an advisor, before acting.
Set up in Montenegro with confidence.
ARM Management advises international companies on Montenegrin entity formation, registration and tax compliance, alongside wider Balkan and EU structuring. Begin with a confidential conversation.