The deadline for the Montenegro CBI program is January 1, 2023! But all the advantages and delights of the Montenegro residence permits, passports, and tax residency will remain intact. There is still time for you to catch up, apply, and enjoy all the overlooked benefits.
The Montenegro tax system is the most underestimated and undervalued one in Europe. It’s high time you discovered and recognized its advantages. In 2022, the fast and easy road to becoming a tax resident of Montenegro remains unhindered. Provided you meet the requirements and apply for citizenship by investment soon, you can obtain your Montenegro tax residency within months. This status comes with the best mix of fiscal benefits and other opportunities in this ‘Switzerland in the Balkans’. Read and act now, before this option expires.
- The benefits you can enjoy if you become a tax resident of Montenegro
- The roadmap for applicants who want to become tax residents of Montenegro
- Resettlement to Montenegro on the basis of the CBI (citizenship-by-investment) program
- Resettlement to Montenegro on the basis of the RBI (residence-by-investment) program
- The most recommended Montenegrin city for permanent residence and for becoming/maintaining the tax residency of Montenegro
- 5 more reasons to become a tax resident of Montenegro by investment
- Seasoned experts to help you become a tax resident of Montenegro asap
Montenegro has long been widely known as a charming tourist destination. This small Christian country is located in southeastern Europe. It offers a unique combination of ski and beach resorts, a nice climate, gorgeous landscapes, and vibrant culture. Besides, it features a variety of opportunities for tourism, education, business, and trade.
We have already written in detail about Montenegro’s attractive investment potential and citizenship by investment program launched in 2019 and extended till 2023. It is the most affordable program of all the CBI offers in the Old World. However, its cost is not the only advantage.
The benefits you can enjoy if you become a tax resident of Montenegro
Why is Montenegro the best European country to become a tax resident of? Because of the tax rates.
Applicable tax rates depend on the profit of taxpayers. The Progressive Corporate income tax (CIT) varies between 9% and 15%. The Progressive Personal Income Tax (PIT) on salary and income earned by entrepreneurs is payable at the rates of 0%(for salaries up to EUR 700 (gross), 9% for salaries from EUR 701 up to EUR 1,000 (gross), and 15% for salaries from EUR 1001 (gross). The proportional 15% tax rate is levied on other types of income. The VAT is 21%. The Withholding Tax rate on Dividends/Interest/Royalties is 15%. The Corporate Capital Gains Tax rate is 15%. The Individual Capital Gains Tax rate is 15%. The Inheritance Tax rate is 3%. There is no Net Wealth/Worth Tax, and the Health Insurance liability has been abolished since 2022. The Social Security contributions are payable for pension and disability insurance at 5.5% by employees and 15% by employers; for unemployment insurance – at 0.5% by employees and 0.5% by employers. The annual Property Tax is levied at rates ranging between o.24% to 1% on the market value of the property. The Property Transfer Tax is payable by the buyer of the immovable property at 3%. You are welcome to refer to our experts for more updates on the changes in the Montenegro tax system introduced in January, 2022.
To become a tax resident of Montenegro, you will have to stay for most of the year (183 days) in its territory.
The Montenegro tax system is extremely straightforward and transparent. The terms/rates/allowances are not difficult to sort out. This makes it easy to plan taxes effectively, design sustainable personal and corporate strategies, and achieve the best fiscal results.
- Why should I choose the Montenegrin offer and not another European country?
- The tax residency of Montenegro features 2 key advantages that distinguish it from all offers of European competitors:
- the ease of obtaining a residency permit
- the degree to which one can legally limit the tax exposure.
Other European countries’ offers are more costly and less potent in terms of obtaining and maintaining one’s tax residency.
For example, to quickly get a residence permit in low-tax Malta, you have to participate in the local economic citizenship program, spend more than €1,000,000. Participation in Andorra’s residency-by-investment program costs €400,000. Georgia offers an easy path to tax residency, but the income tax rate is 20%, while other tax rates are also higher than in Montenegro.
The tax residency of Montenegro comes at a much more reasonable cost (please find more details below). Being aware of all its benefits and advantages, the InternationalWealth experts remain puzzled why many readers hesitate to grasp the opportunity and fail to take advantage of Montenegro tax residency. You should not miss your chance! Act now, before the current most attractive offer expires!
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The roadmap for applicants who want to become tax residents of Montenegro
Montenegro legislation offers a perfect combination of opportunities for becoming tax residents of Montenegro and efficient tax planning. An expat can become a citizen of Montenegro for only €350,000 and move to his/her new home in this Balkan paradise.
Are you an entrepreneur who wants to open a small family office and/or optimize your company’s or personal financial balance by means of investing a modest budget in a second citizenship? Or, are you a wealthy family looking for a nice real estate in some stunning place, opportunities to invest your assets profitably, a chance to obtain powerful passports quickly and enjoy the right to travel without visas to many countries?
Here is what you need to do:
- Step 1: register your private company in Montenegro or buy a local home.
- Step 2: apply for and get the residence/citizen-by-investment status.
- Step 3: move to Montenegro and apply for tax residency.
Resettlement to Montenegro on the basis of the CBI (citizenship-by-investment) program
If you plan to obtain Montenegro citizenship by investment (CBI), you should grasp the easy opportunity to invest in government-approved development projects in some selected regions/ business areas in Montenegro.
There are different ways to invest in the Montenegrin economy to obtain a second passport:
Non-refundable donation of €200,000 to the government fund + investment in the following development projects approved by the government:
- €250,000 in an undeveloped region (north of the country),
- €450,000 in a developed region (south of the country).
- Invest in primary agricultural production: € 2 million + creation of at least 10 jobs.
- Invest in wood processing: € 4 million + employment of at least 20 professionals.
- Invest in fisheries: €3.5 million in fisheries and processing products + employment of at least 20 people.
- Invest in 5* hotels and resorts (tourist development projects): at least € 5 million + employment of at least 25 staff members + development of a resort with 35+ residential units.
If you apply for Montenegro citizenship today, you can take advantage of this fast-track procedure and get the desired status within 5-6 months. By obtaining Montenegro passports, investors will have access to 12+ dozens of countries that they can visit without a visa. Other perks include legally recognized dual citizenship; no mandatory language tests; a great place to live in or visit; other benefits.
Resettlement to Montenegro on the basis of the RBI (residence-by-investment) program
Apart from the above-mentioned shortcut to the status of a tax resident, it is possible to get a Montenegro residence permit by purchasing some real estate. The minimum investment amount is not specified. But the requirements for application documents are quite stringent, which is the reason why we recommend everyone the services of an experienced immigration agent who can help you avoid mistakes and omissions.
Applicants for a residence permit by investment in real estate are required to prove their solvency by depositing in a local bank the sum of €3.65 thousand per each individual/group application.
Yet another option is to apply for a residence permit by starting a local business. The minimum investment amount is not prescribed, but the applicant has to create a real fully operational company (which for sure will be checked by the authorities). This offer is a perfect choice for digital nomads who want to start, for example, a fintech business, taking advantage of the benign tax system and other benefits available in Montenegro.
Remember that the Montenegro residence permit opens the way to a second citizenship. You will have to renew your residency status (stamp) every year during the five-year period. After you apply for permanent residence, you will have to spend another five-year period there. Only then you will be able to apply for citizenship, get your Montenegro passport, and enjoy all the benefits, including the tax residency.
The most recommended Montenegrin city for permanent residence and for becoming/maintaining the tax residency of Montenegro
As mentioned above, the status of a tax resident of Montenegro can be obtained only after living in this state for most of the year. Fortunately, the mix of climatic and landscape diversity, all the tourist attractions of the Balkan state, makes it an excellent reason and opportunity to settle in such an adorable place.
Travelers are free to enjoy nature parks, mountains and hiking trails, sandy beaches, and ski resorts in the north. There are many interesting places worth seeing in Montenegro:
- The Bay of Kotor is undoubtedly one of the most picturesque bays in the world. The cityscape features ancient stone houses, seaside villas, modern villas, and modern residential buildings. Kotor is one of the stunning landmarks of Montenegro. The city is a UNESCO World Heritage Site.
- Perast is a stunning place with its churches and palazzos in the Italian style. Though the average cost of the local property is higher than in other areas, Perast is called a mini-Venice for a reason.
- Tivat is a city of fashionable and luxurious hotels, apartments, high-end boutiques, and restaurants by the sea. Tivat is easy to walk around. The city is a short drive from Kotor.
- Budva often called the Budva Riviera is the coastal region around Budva. It is the heart and flagship of the Montenegrin tourism industry. The region is famous for its excellently preserved medieval fortress, sandy beaches, and varied nightlife.
- Podgorica is the capital city with a population of about 200,000 people, the largest city in the country. It is proud of its impressive modern buildings, abundant green spaces, and many parks.
5 more reasons to become a tax resident of Montenegro by investment
Montenegro is one of the fastest-growing tourist destinations, much favored by wealthy individuals. Pre-crisis real estate prices in Montenegro were on the rise, featuring the increasing demand from expats and the thriving tourism economy. There are several reasons that make investments in Montenegro a popular choice. These include:
Montenegro citizenship: as mentioned above, foreign investors have the right to apply for Montenegro passports by investing in government-approved projects.
Low Property (Real Estate) Tax: the annual property tax rate is between 0.24% and 1% of the market value. It is mandatory for owners or the private persons/legal entities that have used the property during the reporting year. Buyers of real estate in Montenegro are subject to a 3% tax on the transfer of ownership of the real estate.
Income from real estate: The increase in the number of tourists, which has made the Balkan country one of the most prosperous tourist destinations, has stimulated the real estate market. This trend encourages investors to buy local houses with the view to profiting from their resale and lease. Foreign investors have the right to rent out properties when they do not reside in Montenegro.
International airports: there are 2 international airports and 4 local airports in major cities, making it easy for foreign travelers to visit the country.
Moderate climate: holidaymakers and expats in Montenegro enjoy a favorable climate variety, from the pleasant Mediterranean climate in the summer, to the cold snowy mountains in the winter.
Seasoned experts to help you become a tax resident of Montenegro asap
Would you like to become a tax resident of Montenegro by investing in a sustainable business or attractive property in a cost-effective manner? Do you need help with choosing a worthwhile project to invest in?
Our InternationalWealth experts are ready to provide guidance and support. You can contact us right now and book a free one-on-one consultation or request our services. Our contact details are given at the top of this page.
Please do not hesitate to ask any relevant questions, discuss any meaningful topics, share any concerns about the challenges you may face. We will advise you in detail on how to become a tax resident of Montenegro, invest in citizenship, buy some property, or register a company in this jurisdiction.
What do you mean by ‘the country of residence for tax purposes’?
This term refers to the liability of a resident (a private person or a legal entity) to pay taxes/duties/fees charged in the country. As a rule, to become a tax resident of a particular jurisdiction, a foreigner needs to obtain the legal residence/citizenship status implying the right to move there. Having resettled to the country legally, one can apply for tax residency, enjoy the protection against all fiscal claims by other states, and exercise the right to avoid double taxation.
How can I become a tax resident of Montenegro?
You will need to move to Montenegro and stay there for most part of the year. To do so, you will have to receive residency/citizenship status. You can get it by buying a house, a cottage, an apartment, or by registering a company and becoming its CEO in Montenegro.
Is Montenegro a tax haven?
We would rather say so. Montenegro offers international entrepreneurs and businessmen virtually the lowest tax rates in Europe, access to allowances, and protection granted by double taxation treaties of the country. You can book a free session with our expert and find out more specific answers to your questions.
