ECONOMY

The Montenegrin economy is mostly a service-based economy, currently in an economic transition. The Montenegrin economy, which declined in the 90s with the civil war that followed the dissolution of the Yugoslav Republic and the economic sanctions of the United Nations, has been recovering rapidly with the support of foreign investors since the mid-2000s. Although Montenegro's economy is generally based on the tourism and service sector, agriculture and mining also occupy an important place in the country's gross national product.

The gross domestic product (GDP) in 2019 was 5.424 billion USD and the annual income per capita was 8.704 USD. Montenegro ranks 148th in the World ranking with these numbers. The distribution of GDP by sectors is 7.5% Agriculture, 16% Industrial and 76% Services. The estimated inflation rate for the end of 2020 is 0.7% and the unemployment rate is 16.1%.

Montenegro is particularly interesting for its reasonable tax rates. Income tax is 9% and corporate tax is also 9% in the country. The VAT rate is generally 21%.

INVESTMENT OPPORTUNITIES IN MONTENEGRO

Being the country with the lowest tax rate among European countries, Montenegro offers attractive opportunities especially for foreign investors. The country, which has become a NATO member since 2017, has become a safer country in the eyes of foreign investors and especially tourism investments have increased rapidly. Montenegro, which implements the legal system according to the Copenhagen criteria as a result of the negotiations held in the European Union negotiations, protects the rights of investors with a solid legal system. The country does not treat foreign investors differently from its own citizens. In addition to the ongoing tourism investments on the coastline in the south of the country, tourism investments have also started around two ski centers in the north.

In case of acquiring a property or owning a company in Montenegro, the investment owner can obtain a temporary residence permit with his family to be renewed every year. Company establishment procedures are very light and all transactions are completed in about a week. Following this, the residence permit can be obtained within approximately 1 month.

THE ADVANTAGES OF INVESTING IN MONTENEGRO

• Lowest tax rate among European countries (9%)
• State-provided investment incentives
• Qualified workforce and low wages
• Advanced and reliable banking and financial system
• Fast bureaucracy
• High return investment potential in sectors such as tourism, energy, agriculture