Montenegro has an upper-middle-income economy and ranks 48th in the Human Development Index. It is a member of the United Nations, NATO, the World Trade Organization, the Organization for Security and Co-operation in Europe, the Council of Europe, and the Central European Free Trade Agreement. Montenegro is also a founding member of the Union for the Mediterranean, and is currently in the process of joining the European Union.
The economy of Montenegro is mostly service-based and is in late transition to a market economy. Bauxite, the principal raw material for aluminum, is Montenegro’s chief metallic resource. It is found principally near Nikšić.
About one-tenth of Montenegro’s manufacturing labour force is employed in the steelworks at Nikšić, the country’s largest industrial facility despite a location generally unsuited to steelmaking. There are 50,000 farming households in Montenegro that rely on agriculture to fill the family budget.
Montenegro makes no distinction between domestic and foreign companies. Foreign companies can own 100 percent of a domestic company, and profits and dividends can be repatriated without limitations or restrictions.
Exceptions to this policy are the small number of cases dealing with defense-related industries.
Montenegro offers foreign investors low, fixed tax rates, a business-oriented economy, significant economic freedom, a stable currency (Euro), and openness to incentivized tax structures. Montenegro is a beneficiary of the Generalized System of Preferences program, which provides duty-free access to the U.S. market in various eligible categories. The Euro is the official currency in Montenegro, which stabilizes financial flows and results in lower transaction costs. This is an informal arrangement with the European Central Bank, and Montenegro is not part of the Euro Zone. Private ownership is protected by the Constitution and includes equal treatment
of foreigners.
Business zones are important growth-generators of the Montenegrin economy. Their aim is to increase exports and employment, and improve the balance between the manufacturing and services sectors as well as stimulate activities that will be a support to the production capacities developed. Business zones currently exist in the following municipalities: Berane, Bijelo Polje, Cetinje, Kolasin, Mojkovac, Niksic, Podgorica and Ulcinj.
More than 100 countries are investing in Montenegro, with no single country dominating the market. The most significant investments have come from Austria, Holland, Russia, Hungary, Norway, Serbia, Great Brita.
The country's financial system offers great economic freedom and monetary stability to citizens and investors alike. Over the past few years, the banking system has stabilized. There are currently about 15 banks operating here, and the sector is considered highly concentrated.
Montenegrin taxes include personal and corporate income taxes, excise duties, sales taxes, property taxes, taxes on financial transactions, and use taxes. In addition to VAT, a tax rate of 9% is applied to monthly personal gross income below €751 per month, and a tax rate of 11% is applied for income above that. Montenegrin municipalities also apply an income tax surcharge equivalent to 15% of the federal tax rate. Additional income reported in an annual tax return is also subject to a 9% tax rate.
Montenegro’s legal system is a civil, continental type based on Roman law. It includes the legal heritage of the former Yugoslavia and the State Union of Serbia and Montenegro. As of 2006, when the country regained its independence, Montenegrin codes and criminal justice institutions are applicable and operational. Montenegro's Law on Courts defines a judicial system consisting of three levels of courts: Basic, High, and the Supreme Court. Montenegro established the Appellate Court and the Administrative Court in 2005 for the appellate jurisdiction in criminal and commercial matters, and specialized jurisdiction in administrative matters. The specialized Commercial Courts have first instance jurisdiction in commercial matters.
Montenegro has adopted legislation that regulates the registration of trademarks on the territory of the country. In case of trademark infringement in Montenegro, civil and criminal actions may be taken. In accordance with the "Law on Trademarks", the owner of a TM may initiate court proceedings for copyright infringement in Montenegro within 5 years from the date of infringement. The competent court is the Commercial Court of Montenegro.
Our law firm VLO provides legal services for corporate and private clients in Montenegro. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
The economy of Montenegro is mostly service-based and is in late transition to a market economy. Bauxite, the principal raw material for aluminum, is Montenegro’s chief metallic resource. It is found principally near Nikšić.
About one-tenth of Montenegro’s manufacturing labour force is employed in the steelworks at Nikšić, the country’s largest industrial facility despite a location generally unsuited to steelmaking. There are 50,000 farming households in Montenegro that rely on agriculture to fill the family budget.
Montenegro makes no distinction between domestic and foreign companies. Foreign companies can own 100 percent of a domestic company, and profits and dividends can be repatriated without limitations or restrictions.
Exceptions to this policy are the small number of cases dealing with defense-related industries.
Montenegro offers foreign investors low, fixed tax rates, a business-oriented economy, significant economic freedom, a stable currency (Euro), and openness to incentivized tax structures. Montenegro is a beneficiary of the Generalized System of Preferences program, which provides duty-free access to the U.S. market in various eligible categories. The Euro is the official currency in Montenegro, which stabilizes financial flows and results in lower transaction costs. This is an informal arrangement with the European Central Bank, and Montenegro is not part of the Euro Zone. Private ownership is protected by the Constitution and includes equal treatment
of foreigners.
Business zones are important growth-generators of the Montenegrin economy. Their aim is to increase exports and employment, and improve the balance between the manufacturing and services sectors as well as stimulate activities that will be a support to the production capacities developed. Business zones currently exist in the following municipalities: Berane, Bijelo Polje, Cetinje, Kolasin, Mojkovac, Niksic, Podgorica and Ulcinj.
More than 100 countries are investing in Montenegro, with no single country dominating the market. The most significant investments have come from Austria, Holland, Russia, Hungary, Norway, Serbia, Great Brita.
The country's financial system offers great economic freedom and monetary stability to citizens and investors alike. Over the past few years, the banking system has stabilized. There are currently about 15 banks operating here, and the sector is considered highly concentrated.
Montenegrin taxes include personal and corporate income taxes, excise duties, sales taxes, property taxes, taxes on financial transactions, and use taxes. In addition to VAT, a tax rate of 9% is applied to monthly personal gross income below €751 per month, and a tax rate of 11% is applied for income above that. Montenegrin municipalities also apply an income tax surcharge equivalent to 15% of the federal tax rate. Additional income reported in an annual tax return is also subject to a 9% tax rate.
Montenegro’s legal system is a civil, continental type based on Roman law. It includes the legal heritage of the former Yugoslavia and the State Union of Serbia and Montenegro. As of 2006, when the country regained its independence, Montenegrin codes and criminal justice institutions are applicable and operational. Montenegro's Law on Courts defines a judicial system consisting of three levels of courts: Basic, High, and the Supreme Court. Montenegro established the Appellate Court and the Administrative Court in 2005 for the appellate jurisdiction in criminal and commercial matters, and specialized jurisdiction in administrative matters. The specialized Commercial Courts have first instance jurisdiction in commercial matters.
Montenegro has adopted legislation that regulates the registration of trademarks on the territory of the country. In case of trademark infringement in Montenegro, civil and criminal actions may be taken. In accordance with the "Law on Trademarks", the owner of a TM may initiate court proceedings for copyright infringement in Montenegro within 5 years from the date of infringement. The competent court is the Commercial Court of Montenegro.
Our law firm VLO provides legal services for corporate and private clients in Montenegro. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
MONTENEGRO