Income Tax in Montenegro
Complete guide to calculating and filing personal income tax in Montenegro. Rates 0/9/15%, personal allowance €700, surtax 10-15%, contributions 10.5%.
Procedure
Gross salary is the contractually agreed amount of the employee's earnings before all deductions. This is the starting point for calculating all taxes and contributions.
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Income tax rates
| Monthly income | Rate |
|---|---|
| Up to €700 (personal allowance) | 0% |
| €700 — €1,000 | 9% |
| Over €1,000 | 15% |
Surtax rates by municipality
| Municipality | Surtax rate |
|---|---|
| Budva | 10% |
| Bar, other municipalities | 13% |
| Podgorica, Cetinje | 15% |
Employee contributions (from Oct. 2024)
| Type | Rate |
|---|---|
| Pension (PIO) | 10% |
| Health | 0% (abolished Jan. 2022) |
| Unemployment | 0.5% |
| Total employee | 10.5% |
Appendices to GPP-FL — when each is filed
| Appendix | Situation | Rate / regime |
|---|---|---|
| A | Self-employment income — double-entry bookkeeping | 0% up to €8,400 · 9% €8,400–12,000 · 15% above €12,000 (annual) |
| PPG | Carry-forward of prior-year business losses (attached to A) | — |
| A1 | Contribution calculation for self-employment (attached to A) | 60/100/150% of avg. salary × months worked |
| B | Domestic property income (rentals — residential, commercial, tourist) | 15% after standard deductions (30%, 50% or 70%) |
| B1 | Tenant's withholding-tax report (attached to B) | — |
| C | Domestic capital gains (sale of real estate, shares, securities) | 15% on (total gains − total losses) |
| D | Domestic sports income | 15% after 30% standard deductions (amateur 90%) |
| D1 | Payer's withholding-tax report (attached to D) | — |
| E | Copyright, patents, trademarks, self-employed expert — domestic | 15% after 30 / 50 / 60% standard deductions |
| E1 | Payer's withholding-tax report (attached to E) | — |
| F | ALL income earned OUTSIDE Montenegro (rows 1–9) | Row 1 (salary): per-month 0/9/15% at €700/€1,000. Rows 2–9: flat 15%. |
| G | Salaries from TWO OR MORE employers in Montenegro (combined gross > €700 in at least one month) | Tax Administration assesses tax itself — you only attach OPD-2 |
| H | Occasional self-employment + internet + gaming in Montenegro (no withholding) | 15% after 30% standard deductions (internet 15%, gaming 20%) |
Additional notes
Special deductions: voluntary pension contributions (up to €200/month), medical treatment and medication costs, donations to humanitarian organisations (up to 3% of taxable income).
Entrepreneurs submit advance returns by the 15th of each month and the annual calculation by April 30.
Appendix F is filed ONLY for income earned OUTSIDE Montenegro. The same type of domestic income goes into the letter-coded appendices: property → B, capital gains → C, sports → D, copyrights → E, occasional self-employment / internet / gaming → H. The same taxpayer may file both a domestic appendix and Appendix F simultaneously for the same type of income.
Per-month calculation applies ONLY to foreign salary income (Appendix F, row 1) — the €700 and €1,000 thresholds are monthly. All other sources in F (rows 2–9) and all domestic appendices B/C/D/E/H use a flat 15% on the annual amount after standard deductions.
Required Documents
- IOPPD form (monthly tax and contributions return)
- GPP-FL form (annual personal tax return)
- Employment contract
- Salary payment certificates
Legal Basis
Competent Institutions
- Tax Administration of Montenegro
Tax filing and collection
- eUprava
Electronic filing of returns