Support to Investors

There are different forms of support to investors both at the national and the local level in Montenegro. Investors can learn what kind of support they can get here if they want to develop their business in Montenegro.

NATIONAL SUBSIDIES
Incentive measures at the national level include tax incentives for investing in underdeveloped parts of the country:

1. Exemption from income tax
Newly established legal entities in economically underdeveloped municipalities, which carry out production activities, are exempt from income tax for the first eight years. Tax exemption or relief, does not apply to a taxpayer who operates in the sector of the primary production of agricultural products, transport enterprises or shipbuilding, fishing and steel.[_/su_spoiler]
2. Tax on personal income
Taxpayer who commences production activities in economically underdeveloped municipality is exempted from income tax for the first eight years. Tax exemption or relief, does not apply to a taxpayer who operates in the sector of the primary production of agricultural products or ship building, fishing, steel.[_/su_spoiler]
3. Subsidies for employment of certain categories of unemployed persons
Subsidies may be used by the employer who employs:

  • A person of at least 40 years of age
  • Unemployed person of Roma, Ashkali and Egyptian population
  • A person who is registered at the Employment Agency more than five years
  • A person who is engaged on public works execution
  • A person permanently after the traineeship is finished
  • A person whose services are no longer needed (techno-economic surpluses), and is registered at the Employment Agency
  • A person who is employed to perform seasonal jobs
  • Unemployed person with over 25 years of service, which is the user monetary compensation

For the categories of unemployed persons mentioned above,  the employer does not pay:

  • Contributions for compulsory social insurance on salaries (contributions for pension and disability insurance, health insurance contribution, contribution to unemployment insurance, contribution for the Labour Fund)
  • Tax on personal income

From the employee's salary is calculated and suspended:

  • Contributions for pension and disability insurance at the rate of 15.0%
  • Health insurance contributions at the rate of 8,5%
  • Unemployment insurance contributions at the rate of 0.5%
  • Surtax on income tax
  • The employer pays the above contributions in calculated amount and calculated tax on personal income. The employer pays calculated surtax on income tax. The basis for calculation of contributions makes gross earning of employee and the employer pays taxes and contributions with the payment of salaries to employees.
Dokumenta
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LOCAL SUBSIDIES
In addition to national subsidies for small and medium enterprises, each municipality in Montenegro has adopted significant incentives at the local level.

MUNICIPALITY OF BERANE
Berane Municipality owns 225011 m2 of space within the area of business zone, and a free area defined for new capacity within this area is divided into two parcels, including: parcel no. 988/1 in the area of 12.635,3m2 and a part of cadastral plot no. 988/3 with the area of 156 753,47m2. Within the defined area business incubator is made of a gross area of 577.9m², attic of 396.1m², making a total of 974m² gross floor surface. The remaining space is for other production facilities.

Incentives for operating in business zone
  • The land is given to users for a period of up to 10 years free of charge
  • Potential investors are obligated to employ a certain number of workers on behalf of land-use, namely:
    • For the use of the land area of 2,500m2 to employ 3-5 workers
    • For the use of the land area of 5.000m2 to employ 6-10 workers
    • For the use of the land area of 10,000m2 to employ 11-20 workers

Municipality of Berane made the decision for relief in the payment of compensation for communal equipping of buildable land, as follows:    

  • For industrial and public facilities, for communal facilities, compensation is paid in the amount of 50% of the fees for the construction of building
  • For the construction and installation of temporary facilities to conduct business activities, compensation should be paid in the amount of 50% of fees for construction of building
  • For auxiliary facilities of permanent character (garages, warehouses, depots), it shall be paid in the amount of 50% of the fees for the construction of building

At the relevant areas for the development (169,388.77 m2), there are the existing facilities which in the past functioned as industrial buildings, which can be reconstructed and thus the conversion can be performed in order to revive the industrial zone.

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Dokumenta
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