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Montenegro - Other taxes and levies

Montenegro - Other taxes and levies

Taxation of international executives.


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Social security tax

Are there social security/social insurance taxes in Montenegro? If so, what are the rates for employers and employees? 


Employer and employee

In Montenegro for 2017

Type of insurance Paid by employer Paid by employee Total
Pension and disability insurance 5.50% 15.00% 20.50%
Health insurance 4.30% 8.50% 12.80%
Unemployment insurance 0.50% 0.50% 1.00%
Total 10.30% 24.00% 34.30%

Social security contributions are calculated and withheld by the employer, although contributions are payable both on behalf of employee and employer. Employer is obliged to pay social security contributions on gross salary (including fringe benefits) of employee. Social security contributions tax base is capped and for 2017 it amounts to EUR 52,308.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Montenegro? 

No wealth tax is imposed in Montenegro.

There is a form of gift and inheritance tax that depends on the type of property that is transferred. 

However, individuals who are acquiring immovable property based on a contract of lifelong care, who are heirs of first order of hereditary with respect to the giver of real estate are not subject to taxation. 

With respect to transfer of movable property, in the form of inheritance and gift, tax rate is 5%. Tax is not paid by the person receiving the gift if he/she is in first hereditary order relation with the gift giver, or heir, who is related to the testator in the first order of hereditary. 

Real estate tax

Are there real estate taxes in Montenegro? 

A real estate tax is levied on the owner of the property at a local (municipality) level.

Sales/VAT tax

Are there sales and/or value-added taxes in Montenegro? 

There is VAT tax in Montenegro. The general VAT rate for the taxable supply of goods and service and import of goods is 21%, while the reduced tax rate is 7 %.

Unemployment tax

Are there unemployment taxes in Montenegro? 

None. There are unemployment social security contributions. See under social security tax.

Other taxes

Are there additional taxes in Montenegro that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

In Montenegro, a customs tax is applied. However, due to the process of EU accession Montenegro has gradually abolished almost all customs duties for goods originated from the EU.

Excise tax is applied on oil, alcohol, tobacco, mineral oils and their derivate.

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