FAQ

How long will it take DXB Investments to establish my business in Montenegro?

Approximately 30 days.

When will I receive my Residency & Work Permit?

As soon as your business is established (30 days), you will be able to receive your Residency & Work Permit in Montenegro. 

Will the Residency be Temporary or Permanent?

Your Residency will be Temporary for the first five (5) years and has to be renewed yearly during that period. After those first five (5) years you will receive a Permanent Residency. – There are only minimal administrative costs involved for the yearly renewal (around €500 only, and paid straight to the Government of Montenegro).

Will I have to physically travel to Montenegro?

After the establishment of your business you will be required to travel once to Montenegro to receive your Residency/Work Permit (ID).

ًWhat is the Total Cost of establishing the business in Montenegro?

The Total Cost of establishing the business in Montenegro (including the Residency & Work Permit) is €12,000.

50% paid upfront (€6,000).
50% paid right after applying for a visa at the Montenegrin Embassy (€6,000).

Are there any other costs that I should be aware off?

After establishing your business, and as an investor/business owner, you will have to pay a monthly taxes to the government (around €120 per month only – can be paid yearly).

Will I be eligible for free Education & Healthcare?

Yes. As an investor and business owner, you have to pay monthly taxes (one of the lowest in Europe). In that case, you get free education and healthcare in return.

Do I have to reside in Montenegro?

No, it is not necessary for you to reside in Montenegro.

How long is the flight from Dubai to Podgorica, Montenegro?

The flight is around 5-6 hours long.

Is it safe to travel to Montenegro?

Montenegro is as safe as any other European country. Given that it is an European Union (EU) candidate and a NATO member, it will only become safer.

What is the climate in Montenegro like?

Average air temperature is 27.4°C in the summer and 13.4°C in the winter. Montenegro has around 250 sunny days a year.

What is the currency in Montenegro?

Euro

Will I be able to enter the Schengen Zone with my Residency Permit?

Not at the moment. Montenegro is an EU Candidate (in the integration process). However, as soon as Montenegro becomes a Member then you will be able to enter any country in the Schengen Area/Zone.

What is the total population in Montenegro?

Based on estimates of the population in 2024, Montenegro has 623,831 inhabitants.

What are the main religions?

Montenegro is a multi-religious state with Christian Orthodox, Islamic, Roman, Catholic, Jewish, Protestant and other denominations.

Can a foreigner own Real Estate in Montenegro?

Yes.

Can foreign investors acquire rights to real estate in Montenegro?

Foreign investors can acquire rights to real estate in Montenegro, such as company facilities, apartments, living spaces and land for construction. Additionally, foreign persons can claim property rights to real estate by inheritance in the same manner as a domestic citizen.

Can a foreign Real Estate owner receive a residency permit?

Foreigners Law of Montenegro provides an opportunity for foreigners who own real estate in Montenegro to obtain a residence permit on this basis for the period of one year with subsequent extension.

Can foreign investors be taxed differently than domestic investors?

No. Foreign investors cannot be taxed differently than domestic investors. A foreign investor has all the rights and obligations as domestic investor.

Is the foreign investor obligated to ensure his/her investment?

The foreign investor is obligated to ensure the investment according to insurance regulations.

Can the assets of a foreign investor be taken away?

The assets of a foreign person cannot be taken away unless the law provides proof that this is in the public interest. In such a case, the investor is given a settlement fee or compensation, which cannot be less than the market value of the acquired asset. Foreign investors has the same economic rights as domestic ones.

What is the minimum financial requirement (capital) for a Limited Liability Company (LLC)?

1 Euro.

Which institution is in charge of business registration?

The Central Register of the Commercial Court is in charge of business registration. It has an electronic database of registered business entities, contracts on financial leasing and pledges.

How many documents do you need to register an LLC?

Three documents: Founding decision, bylaws and a copy of the passport (if you are founding a company as an individual) or registration form for the specific type of company.
Other documents might be required by DXB Investments for registration purposes.

Which countries are Montenegro’s major foreign trade partners?

According to the recent statistical figures major foreign trade partners are: Serbia, China, Italy, Greece, Slovenia, Bosnia and Herzegovina, Croatia, Germany, Austria, Switzerland and Hungary.

Does Montenegro have any Free Trade Agreement?

Montenegro has signed the Central European Free Trade Agreement (CEFTA) on July 26, 2007. The agreement has been signed with seven countries (Albania, Macedonia, Moldova, Montenegro, UNMIK/Kosovo, Croatia, Serbia, and Bosnia and Herzegovina). Fee-trade Agreement was signed with Turkey, on November 26, 2008. This agreement is in force from March 1, 2010. Montenegro had Free Trade Agreement with Russia, and the agreement is in the negotiation process now. Also as part of the negotiations with Russia there are negotiations on free trade agreements with Kazakhstan and Belarus, which formed a customs union together with Russia. Free-Trade Agreement between Montenegro and members of the European Free Trade Association (EFTA) was signed in November 2011. This agreement is in force from September 1, 2012. Although four EFTA countries are small, they are the World leaders in several sectors vital to the global economy. Liechtenstein and Switzerland are internationally renowned financial centers and hosts to major companies and multinationals, while Iceland and Norway stand out in fish production, the metal industry and maritime transport. Free Trade Agreement between Montenegro and Ukraine was signed on November 18, 2011.

Are there any Free zones in Montenegro ?

The Government of Montenegro, Port of Bar JSC and Municipality of Bar founded the Free Zone of the Port of Bar. Zone officially started to work in 2005. Users of the Free Zone enjoy many benefits provided by the Law on Free zones (adopted in 2004) and other regulations (Import free of paying custom duties, custom fees and VAT, storage of goods in the duty free regime for an unlimited period of time, a wide range of possible activities and potential users, low corporate tax, simplified procedures etc).

What is the Personal Income Tax?

Personal income tax is 9% with introduction of temporary tax rate of 15% applicable only on the salaries above the 480 EUR net.

What is the corporate income tax rate?

The corporate profit tax in Montenegro is 9% flat.

Who is exempted from payment of tax on profits?

State authorities, state administration authorities, local self-government authorities, public funds, public institutions, tourism organisations, sports clubs, sports associations and federations, religious communities, arts associations, political parties, chambers, trade unions and non-governmental organisations, shall not pay the Profit Tax if they are established under a special law to carry out a non-profit activity. 78. Which countries have signed the Double Taxation Treaty with Montenegro

Montenegro signed 42 treaties with various countries on income and property, which regulate double taxing. At this moment, 41 treaties are in force, while 1 (with India) is pending. In force are treaties concluded with Albania, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Italy, Ireland, Korea, Kuwait, Latvia, Macedonia, Malaysia, Moldova, Malta, Holland, Norway, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Sri Lanka, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, and United Arab Emirates.

What are the Value Added Tax rates?

The standard VAT rate in Montenegro is 19%, but there are reduced rates of 7% for tourism, IT equipment and 0% for some basic products. The VAT turnover period averages 30 days.

What are property tax rates?

Tax on property is paid by the title holder of property rights (ownership, right of use, etc.). Companies pay property tax at rates from 0.1% to 1%. In some cases, tax may be increased up to 5.5% (tourist areas). Tax is determined in the tax assessment, issued by the tax authorities up to 31 May of the current year.

• A transfer tax of 3 % is levied on the transfer of immovable property.
• The local governance unit may set the property tax rates according to the categories of immovable property;
• The tax rate on the sale of non-cultivated land is up to 50% higher compared to cultivated land.

What are incentives for investors who hire local workforce?
In January 2015 Government issued a new Decree on fostering direct investments, in order to further improve FDI income and investment incentives. According to this Decree, funds for fostering investments may be awarded for investment projects of EUR 500.000 (minimum investment value) which generate the opening of 20 new jobs (minimum). Fulfilling these terms, investors are guaranteed to receive from 3.000 to 9.000 € per workplace.

What are full time working hours in Montenegro?

The working week consists of 40 working hours. According to the Labor Law, it is possible under certain circumstances to sign a contract specifying a minimum 10 hour workweek.

Does Montenegro have representative offices in the United Arab Emirates (UAE)?

Yes.

EMBASSY OF MONTENEGRO TO THE UNITED ARAB EMIRATES
(ACCREDITED TO THE KINGDOM OF BAHRAIN AND THE STATE OF QATAR)
Villa 1, Building 69, Rabdan st 29, Al Mushrif
Abu Dhabi, P.O. Box 95083, UAE
Tel: (+ 971) 2441 89 01
Fax: (+ 971) 2441 89 00
Email: montenegrouae@mfa.gov.me

What is the current Montenegrin visa regime for foreigners?

The citizens of EU member countries, countries of Schengen agreement, do not need visa in order to enter in Montenegro. Citizens of these countries can stay up to 90 days and may be in transit over the territory of Montenegro on the basis of a valid travel document. All mentioned can be applied for the following countries as well: Albania, Andorra, Australia, Azerbaijan, Argentina, Bermuda, Belarus, Bosnia and Herzegovina, Brazil, Canada, Chile, Guatemala, Holly See, Honduras, El Salvador, Ireland, Iceland, Israel, Japan, Cyprus, South Korea, Costa Rica, Macedonia, Malaysia, Mexico, Moldavia, Monaco, Nicaragua, New Zealand, Panama, Paraguay, San Marino, The Seychelles, Singapore, the USA, Serbia, Switzerland, Turkey, United Arab Emirates and Uruguay. Citizens of the following countries may enter, pass through the territory and stay in Montenegro for up to 30 days with a valid travel document: Ecuador, Kosovo, Cuba, Liechtenstein, Peru, Russia, Ukraine and Venezuela. Based on bilateral agreements, visa is canceled on diplomatic passports for the following countries: Georgia, Hong Kong, Morocco and Mongolia.