Montenegro isn't in the EU, but it uses the euro as its official currency and offers one of Europe's most accessible starting points for a company, a DOO can be formed with just 1 euro in capital. The old flat 9% corporate tax rate has also become more nuanced since 2025, worth understanding before you plan around the headline number. Here's what it takes to start a business in Montenegro in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No minimum capital required, suited to freelancers and small individual operators.
- DOO (drustvo sa ogranicenom odgovornoscu). Montenegro's limited liability company and by far the most popular choice, accounting for over 90% of new registrations. Minimum share capital is just €1, and single-member companies are fully permitted.
2. Register your business
Companies register with CRPS (the Central Registry of Business Entities). Founding documents must be notarized, either in Montenegro or at a Montenegrin embassy or consulate if founders are abroad, and initial capital is deposited into a temporary bank account before the full application, including notarized documents and deposit confirmation, is submitted to CRPS. Processing typically completes within about a week, for roughly €22 in government fees. A PIB (tax identification number) is assigned automatically upon registration. Worth noting: a new Law on Companies took effect 1 January 2026, requiring all existing legal entities to re-register and align with a new company Charter by 15 June 2026.
3. Check licenses and permits
Montenegro doesn't issue a single national business license. What you need depends on your industry; certain sectors carry their own permits on top of standard CRPS registration.
4. Understand Montenegrin taxes
Corporate income tax has been tiered since a 2025 reform, no longer the flat 9% many older guides still cite: 9% on the first €100,000 of profit, 12% on the portion between €100,000.01 and €1,500,000, and 15% above €1,500,000. Dividend distributions carry a 15% withholding tax regardless of whether the recipient is Montenegrin or foreign, reducible to 5% or 10% under Montenegro's double taxation treaties depending on the specific agreement and shareholding.
VAT is 21% standard, with a 7% reduced rate for certain essential goods and tourist services. Registration is mandatory once annual turnover exceeds €30,000.
5. Stay compliant
Annual financial statements are due 90 days after year end. VAT returns are filed monthly or quarterly depending on turnover. Most foreign-owned DOOs work with a local accountant, typically €100 to €300 a month, to handle ongoing filings; there's no annual registration renewal fee to keep a DOO active, a genuinely low-friction feature compared to some neighboring jurisdictions.
Montenegro business costs at a glance
| Item | Cost |
|---|---|
| DOO minimum share capital | €1 |
| DOO registration (government fees) | ~€22 |
| Corporate tax (first €100,000 profit) | 9% |
| Corporate tax (€100,000 to €1.5M) | 12% |
| Corporate tax (above €1.5M) | 15% |
| Dividend withholding tax | 15% |
| VAT, standard rate | 21% |
| VAT registration threshold | €30,000 turnover |
Frequently asked questions
What's the corporate tax rate in Montenegro?
Tiered since a 2025 reform: 9% on the first €100,000 of profit, 12% between €100,000.01 and €1,500,000, and 15% above €1,500,000.
How much capital do I need to start a DOO in Montenegro?
Just €1.
How much does it cost to register a DOO in Montenegro?
Around €22 in government fees, with processing typically completing within about a week.
When do I need to register for VAT in Montenegro?
Once annual turnover exceeds €30,000. The standard VAT rate is 21%.
Does Montenegro use the euro?
Yes, even though it's not an EU member, Montenegro uses the euro as its official currency.
Fees and rates above come from CRPS and the Montenegrin Tax Administration as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Montenegro-qualified accountant or lawyer about your specific situation.