Property

Rental Income Tax

Guide to rental income taxation in Montenegro. Rates 9-15%, monthly filing, personal deduction, required documentation.

Monthly filing
9-15% of rental income
4 steps

Procedure

The landlord must register the lease agreement with the Tax Authority. The contract should contain details about the landlord, tenant, property, monthly rent amount, and lease duration.

LandlordWithin 15 days of signing
Lease agreementProperty ownership document

Required Documents

  • Lease agreement (registered with Tax Authority)
  • Rental income tax return
  • GPP-FL form (annual tax return)
  • Rent payment records

Competent Institutions

Rental income taxation

ParameterDetail
Tax rate9% (up to €1,000) / 15% (above €1,000)
Flat-rate cost deduction20% of gross rent
Personal allowance€700/month
Surtax10-15% (depends on municipality)
Filing deadlineBy the 15th of the month

Additional notes

Failing to register a lease agreement incurs monetary fines.

If the landlord is a VAT payer (turnover above €30,000), VAT is also charged on rent.

Short-term rental income (tourist accommodation) has a special tax regime.