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This stunning Balkan gem, known for its picturesque landscapes, Mediterranean climate, and rich cultural heritage, has become an increasingly popular destination for expatriates.
In this guide, we’ll walk you through everything you need to know about relocating to Montenegro from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
if you spend more than 182 days in Montenegro during the tax year period.
if your personal, economic and social ties are located in Montenegro during the tax year.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.
if your main residence is located in Montenegro during the tax year.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
if you spend more than 182 days in Montenegro during the tax year period.
if you are registered with the Italian resident population.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if your personal, economic and social ties are located in Montenegro during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if your main residence is located in Montenegro during the tax year.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
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Providing that you start a self-employed business in a non-developed region in Montenegro, tax on the business profits will be exempt for 8 years up to a limit of EUR 200,000.
* Montenegro can be a very tax efficient place to live for entrepreneurs and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
If you receive incomes overseas while you are living in Montenegro, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Montenegro has 45 double taxation agreements signed.
