Regime Rate
9%
Under the Flat 9% Tax
Standard Top Rate
15%
without this regime
Duration
Unlimited
No expiry — permanent regime
Target Profile
Flat Rate
Montenegro
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under Flat 9% Tax
€13 500
Standard Rate
€15 750
Annual Saving
+€2 250
Eligibility Requirements
Who qualifies?
- All residents and companies
How the Regime Works
Full details
Flat 9% CIT and 9–15% PIT (9% up to €12,000 gross income; 15% above). 9% dividend withholding. 0% on reinvested profits (investment incentive).
Regime vs Standard Rates in Montenegro
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 15% | 9% | -6.0pp |
Frequently Asked Questions
What is the Flat 9% Tax in Montenegro?
The 9% Flat Rate Corporate and Income Tax is a special tax regime in Montenegro that provides 9% flat rate to qualifying individuals or entities. Flat 9% CIT and 9–15% PIT (9% up to €12,000 gross income; 15% above). 9% dividend withholding. 0% on reinvested profits (investment incentive). Legal basis: Law on Income Tax of Natural Persons; Law on Corporate Profit Tax.
Who is eligible for the Flat 9% Tax?
Eligibility for the Flat 9% Tax is limited to: All residents and companies. Applicants typically must not have been Montenegro tax residents during a specified prior period. Always verify current conditions at the source: Law on Income Tax of Natural Persons; Law on Corporate Profit Tax.
How much tax do you pay under the Flat 9% Tax?
Under the Flat 9% Tax, you pay 9% flat rate on qualifying income — significantly lower than Montenegro's standard top rate of 15%. On €150,000 gross, you save thousands of euros per year.
How long does the Flat 9% Tax last?
The Flat 9% Tax is a permanent regime with no set expiry — it applies for as long as you continue to meet the eligibility criteria.
How do I apply for the Flat 9% Tax?
Application procedures for the Flat 9% Tax are set out in Law on Income Tax of Natural Persons; Law on Corporate Profit Tax. You typically need to file a formal application with Montenegro's tax authority after establishing residency. Consult a local tax advisor for guidance.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.