Since regaining its independence in 2006, the development of the Montenegrin economy has focused on attracting FDI through a competitive business environment that offers rewarding investment opportunities and unique natural potential.
The state’s long-term commitment to Euro-Atlantic integration, as well as its aspiration to move closer to modern economic trends, have led to the implementation of numerous reforms that have contributed to the creation of a favorable investment climate.
These are several incentives contributing to the overall business environment which are important when considering doing business in Montenegro (such as low-income tax rates, preferential access to the European Union market, national treatment of investors, relatively low customs rates, simplification of procedures, and reduction of costs for registration of business entities and obtaining building permits and using the euro as a national currency).
An investor can easily start his business in Montenegro. Foreign investors are subject to the same conditions as domestic investors when it comes to establishing a company and making an investment. A foreign investor in Montenegro may be a foreign natural or legal person. The currency in Montenegro is the euro.
Montenegro’s tax system has become one of the most competitive in Europe. With a 9% personal income tax rate, companies operating in Montenegro enjoy not only a business-friendly environment but also a low tax burden, thus maximizing their operational profit.
When presenting the opportunities for doing business in Montenegro, one should start with what is immediately evident – the strategic geographic location of Montenegro as a Mediterranean country Montenegro is located in Southeast Europe and borders: Serbia, Croatia, Albania, Bosnia and Herzegovina, and Kosovo. The total land area of Montenegro is 13,812 km2. Also, it consists of 7,835 km of roads and 250 km of railways. One of the key priorities was to protect natural resources and preserve the identity of its unique space. After Montenegro adopted the Declaration on the Ecological State (August 20, 1991), it became the first country in the world to be declared an ecological state.
The main industrial port is Bar and 2 international airports: Podgorica and Tivat.
According to Monstat estimates on 1. January 2022, there were 619,211 inhabitants in Montenegro. One of the most important characteristics of the Montenegrin population is its diverse ethnic structure. The main ethnic groups living in Montenegro are: Montenegrins, Serbs, Bosniaks, Albanians, Muslims, and Croats.
Some of the basic data, including the labor market of Montenegro, are presented below (based on MONSTAT 2018 data):
251,2
thousand
Total number of employees (2022)
43,2
thousand
Total number of unemployed (2022)
294,4
thousand
Active population (2022)
203,7
thousand
Inactive population (2022)
59,1%
Activity rate (2022)
50,4%
Employment rate (2022)
14,7%
Unemployment rate (2022)
30,3%
High youth unemployment rate (2021)
Economic indicators
Economic indicators that characterize today's economy of Montenegro
5,7
Billion EUR
GDP - 2022
6,6%
-
Real GDP Growth Rate - 2022 (The Statistical Office of Montenegro)
9,465
USD
GDP per capita 2022 (The World Bank)
20,4%
-
Tax wedge on minimum salary (450 EUR)
9-15%
-
Corporate profit tax
21%
-
VAT
POPULATION STRUCTURE, BY LEVEL OF EDUCATION AND AGE - MONTENEGRO 2022
| EDUCATION | 15-24 | 25-34 | 35-44 | 45-54 | 55-64 | 65-74 | 75+ | Uk. |
|---|---|---|---|---|---|---|---|---|
| No school and incomplete primary education | 1,7 | / | / | / | 2.1 | 3,2 | 9,2 | 19,2 |
| Primary school | 32,4 | 3,9 | 9,8 | 11,2 | 12,0 | 11,6 | 9,1 | 90,0 |
| Vocational education after primary school | 2,8 | 8,3 | 13,2 | 15,4 | 12,7 | 8,4 | 4,2 | 65,0 |
| Secondary education | 14,4 | 8,2 | 5,0 | 5,1 | 4,6 | 2,0 | / | 40,2 |
| Secondary vocational schools | 28,7 | 33,6 | 33,6 | 40,0 | 30,2 | 12,5 | 4,0 | 182,6 |
| Higher education | 5,5 | 37,1 | 21,1 | 14,9 | 13,6 | 7,9 | 3,6 | 103,8 |
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