Information about Montenegro
Montenegro belongs to the central Mediterranean region. It is located in Southeast Europe, in the central part of the Balkan Peninsula and on the southern coast of the Adriatic Sea. The border neighbors of Montenegro in the west are Bosnia-Herzegovina and Croatia. It is bordered by Serbia in the north, Albania in the east and the Adriatic Sea between Montenegro and Italy in the south. The total length of the land borders is 614 km; the coastline length is 293 km out of which 73 km is composed of beaches.
Montenegro has received a long-term credit rating at BB level by credit rating agency Standard and Poor’s and Baa1 level by credit rating agency Moody’s.
Foreign investments do not differ from the domestic and they can be in the form of money, securities, properties, services and rights of assets.
Yes. There are no formal obstacles for foreign investors to receive real estate property rights in Montenegro.
Montenegro regained its independence on 3 June 2006. Prior to that, Montenegro and Serbia were united as a sole state. Parliamentary democracy exists in Montenegro. Parliament members (81) as well as the president are elected by the people. The legal system in Montenegro is the Continental European legal system.
Montenegro is a country attractive in many ways to the investors. Firstly, its geographical position at the crossroads between East and West, together with the direct exit to the sea and links to international airports make it a strategically invaluable place. In addition, Montenegro is known for condensed diversity in natural beauties with some of the most breathtaking locations in the world. It is attractive for different types of tourists since it has all-year-round natural resorts in different locations across the country and currently it is one of the more sought destinations in Europe. Additionally, Montenegro has over 270 sunny days in a year, as well as huge water and wind potentials which all could be turned into energy sources easily. The government created incentives for foreign investments and development, especially for the northern region of the country which is the region with enormous agricultural and touristic potential. Finally, Montenegro, with its liberal regime towards foreign countries and signed trade treaties is open to the market of over 800 million people when it comes to import and export of goods.
Here is the information you need if you are interested in investing in Montenegro
What is the relationship towards foreign investors?
Foreign investors have the same treatment as domestic investors. A foreign investor is allowed to invest in any kind of industry and to have free movement of finances, property and other goods, including profit and dividends.
How can you become a foreign investor in Montenegro?
One can become a foreign investor in Montenegro through:
· Establishing a new company
· Investing in existing companies
· Opening branches of foreign companies
· Buying an existing company
What are the rights and obligations of the foreign investor?
Through investment, the foreign investor has the right to take part in the operation and/or management of the company and to take all its investment and capital back. The foreign investor is entitled to the benefits secured under the internal law. The investor is obliged to respect the laws of Montenegro, which are favorable towards investors.
Are there any obstacles for foreigners to buy property in Montenegro?
Foreigners have the right to buy property under conditions which are the same for the citizens of Montenegro, with the valid identity document. However, according to the Law, a foreigner cannot own forests, forest ground and agricultural land bigger than 5000 m2, cultural monuments of importance, property which is 1 km away from the border, islands, natural riches and goods which are in public use.
What is Montenegro’s tax system like in relation to foreign investments?
The tax system in Montenegro is the same for foreign investors as for the domestic companies and businesses. The types of taxes which are paid are:
· Corporate tax (9%) (which is among the lowest in the world)
· Personal income tax (9%)
· Value added tax (19%, 7% and 0%)
· Real estate taxes (0.10% to 5%)
· Social security contributions
· Excise, fees and customs
What types of businesses are excluded from paying tax on construction material and furnishing?
As an incentive to the investors, the government of Montenegro removed the tax on construction for the 5***** or more stars hotels, energy power plants for the production of electric current of power greater than 10 MW and C group of food products manufacturing for the investments higher than 500.000€.
Additionally, there are tax reductions for hotels of 4**** and more stars ranging from 30% to 70%.
What are other reasons for investing in Montenegro?
Being that Montenegro is on its way to join the European Union this is the perfect time to think about investing in business or property. Once Montenegro enters the European Union great opportunities for investment will be harder to find, while those who had established their position in time will reap the benefits that the membership in the EU brings. Furthermore, Montenegro has recently become a member of NATO which grants further stability and safety for foreseeable future.
Incentives for Investors
With all the beauties