Why Montenegro

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 2020, there were 621,873 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):

237,4

thousand

Total number of employees

42,5

thousand

Total number of unemployed

279,9

thousand

Active population

219,9

thousand

Inactive population

64,3%

Low activity rate

54,5%

Low employment rate

15,2%

High unemployment rate

29,49%

High youth unemployment rate

Economic indicators

Economic indicators that characterize today's economy of Montenegro

4,907

Million EUR

GDP - IVq 2019

3,6%

-

Real GDP Growth Rate - IVq 2019

7,892

EUR

GDP per capita - 2019

1,6%

-

Inflation rate

9%

-

Income tax

21%

-

VAT

POPULATION STRUCTURE, BY LEVEL OF EDUCATION AND AGE - MONTENEGRO 2019

EDUCATION 15-24 25-34 35-44 45-54 55-64 65-74 75+ Uk.
No school and incomplete primary education 2,3 x 1,2 1,2 2,4 4,4 9,9 22,2
Primary school 30,4 4,3 8,5 10,7 12,0 11,4 8,6 85,9
Vocational education after primary school 2,7 10,3 14,7 15,6 12,6 8,1 3,7 67,8
Secondary education 14,4 6,9 5,0 4,8 4,1 1,6 x 37,3
Secondary vocational schools 30,3 33,3 32,7 40,7 29,2 12,3 4,4 182,9
Higher education 5,5 35,9 21,4 14,6 15,1 8,0 3,8 104,3

Need advice? We offer professional support!

Contact us for more information about our services.