Montenegro indeed has a range of attractive corporate tax incentives aimed at encouraging foreign investment. Here’s a concise summary of the key incentives available for foreign investors:
Key corporate tax incentives in Montenegro
- Low corporate tax rates
- Flat rate: A competitive corporate tax rate of 9% applies uniformly across all companies, regardless of size or industry.
- Tax incentives for reinvested profits
- Companies that reinvest profits in local operations or new projects can enjoy tax reductions, promoting local economic growth and job creation.
- Tax holidays and reductions
- New companies: Startups in less developed regions may qualify for tax holidays, temporarily reducing or eliminating corporate tax liabilities.
- Large investments: Additional tax reductions are available for significant investments in strategic sectors like energy and tourism.
- Foreign tax credit
- To prevent double taxation, companies can deduct foreign taxes paid on income sourced outside Montenegro from their local tax liabilities.
- Exemptions for capital gains
- Certain capital gains related to reinvestment in business expansion may be exempt from corporate tax under specific conditions.
- Incentives for strategic sectors
- Targeted tax incentives, including reduced rates and special deductions, are available for investments in agriculture, renewable energy, tourism and innovation.
These incentives position Montenegro as an attractive destination for foreign investors looking to expand their operations in a competitive European market.