AdminOne of the most important advantages is that Montenegro is a country in the European Union process. Montenegro, currently the first candidate country on the list, is expected to become a European Union member country by 2025. Almost all phases have been completed and an intense change process has begun.
Of course, when this process is completed, all people who own a company and have the right to live in the country will have the opportunity to gain visa-free travel, free entry, free trade, residence and work rights when entering EU countries through Montenegro.
- Montenegro offers entrepreneurs the opportunity to pay low taxes while doing their own business.The general VAT rate in the country is 21%, while the reduced VAT rate is applied as 7% (the rate applied to various services, including tourism).Income Tax rate;9% or 11% according to the amount of income, the Corporate Tax rate is 9%.Taxes other than VAT are paid 1 time per year.Montenegro is among the countries that are members of the World Trade Organization (WTO).In this case, company owners have the opportunity to trade easily and profitably with the whole world.Therefore, invoices can also be issued internationally.
- It also has free trade agreements with EU, EFTA, CEFTA countries and countries such as Turkey and Russia.In addition, thanks to the double taxation avoidance agreement signed with many countries in this context, investors only pay taxes to the Montenegrin State, even if they import and export.Among these countries is Turkey.This agreement was signed in Belgrade on 12 October 2005 and entered into force.
- The Montenegrin administration does not make a distinction in terms of local or foreign company establishment.Foreigners equally benefit from all the company opening opportunities that the Montenegrin people benefit from.
- It is possible to easily start the company opening process without coming to Montenegro through a power of attorney.
- Montenegro welcomes an average of 6 million tourists in 1 year.Considering that the country is a place suitable for both winter and summer tourism, this number offers company or business owners the opportunity to make a profit at any time of the year.
- Spouses and children under the age of 18 of company owners can also obtain a residence permit in Montenegro.
- Companies are not obliged to issue invoices.However, it is recommended to pay monthly insurance and accounting expenses.If the annual turnover of your company in Montenegro does not exceed 18,000 Euros, you do not need to be a VAT-registered company.Therefore, it is sufficient to file the tax return once a year.However, if your annual turnover exceeds €18,000, you will have to file a declaration every month, as you will be a VAT-registered company.
- Businesses are not obliged to employ local or any workers, but company owners are required to obtain a residence and work permit.
- In order to obtain a residence and work permit in Montenegro, it is sufficient to establish a limited company with a capital of only 1 Euro.
- A high school diploma is sufficient for your company opening procedures.
- Entrepreneurs can get their residence card between 21-55 days after submitting all their documents to the authorized government offices and completing the opening of the company.
- There are no limits on buying land for people who own a company in Montenegro.As an individual, only 5 acres of land can be purchased.
- In case of opening a company in one of the state incentive areas in Montenegro, it is possible to receive a state incentive.
- In the opening of the company, there is no obligation for foreign partners like European countries.
- If the person who is at least 51% shareholder of the company established in Montenegro shows himself as the director of the company, there is no obligation to live in the country for 12 months of the year.
- If the persons who are 51% shareholders or general managers of the company update their residence permits for 5 years without interruption and make all their payments;At the end of 5 years, they have the right to apply for an indefinite residence permit.At the end of 10 years, it is possible to apply for citizenship.All of these processes are expected to be updated after the European Union accession process is completed.Processes can become much shorter.