Taxes for Expats and Retirees in Montenegro: What You Need to Know
TLDR: Foreigners moving to Montenegro must register with local authorities within 24 hours of arrival, pay the daily residence tax, and apply for temporary residence if staying longer than 90 days. Work requires a combined residence and work permit, while property ownership can provide a one-year renewable residence basis. Foreigners can own most real estate, drive on their home licence short-term, and must track tax residency rules (183+ days) plus rental income taxes. Each municipality sets its own residence tax rates and procedures, so always verify locally.
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Before you arrive: entry, visas, and how long you can stay

Most travelers enter Montenegro visa-free for up to 90 days (exact privileges depend on your passport). Your passport must be valid at entry, and you should have at least one blank page. If you carry €10,000 or more (or equivalent) in cash, you must declare it to customs when entering or leaving.

Key takeaways

  • Visa-free entry for many nationalities up to 90 days; otherwise, obtain an appropriate visa in advance.

  • Currency declaration required when carrying €10,000 or more.

Where you sleep: mandatory registration and the local residence (“tourist”) tax

In Montenegro, foreigners must register their stay within 24 hours of arrival in each municipality where they stay more than 12 hours. Hotels and licensed accommodations typically register you automatically; if you’re in a private apartment or staying with friends, you (or your host) must register at the police or tourist office. Most municipalities also charge a daily residence (tourist) tax, usually around €1 per adult per day, with discounts or exemptions for minors and property owners.

Why this matters: Failing to register or pay the residence tax can result in fines. Save receipts; you’ll need them later for residency applications or practical matters such as banking or schooling.

Staying longer than 90 days: temporary residence (privremeni boravak)

If you intend to stay longer than 90 days, you must apply for temporary residence. Application is made in person to the Ministry of Interior. If you submit a complete application before your 90 days expire, you may remain in Montenegro until a decision is issued. Temporary residence can be granted for purposes such as family reunification, studies, professional training, research, medical treatment, religious service, and other grounds foreseen by law.

Common requirements include:

  • Valid passport, proof of accommodation, and means of subsistence

  • Health insurance covering Montenegro

  • Supporting documents aligned to your chosen basis (for example, school certificate, family ties, employment contract)

Property ownership as a basis: Foreign property owners may apply for a one-year, renewable temporary residence on that basis. This route remains widely used, though practical requirements can shift—verify specifics for your municipality before filing.

Working legally: the combined temporary residence & work permit

Montenegro’s go-to corporate structure is the D.O.O. (limited liability company). The minimum share capital is just €1, and one founder is sufficient. Registration runs through the Central Register of Business Entities; electronic services via the eFirma portal continue to expand.

Note: If your purpose of stay is business operation or management, align your corporate setup with your residence or work permit basis to avoid gaps in status.

Starting a business: quick facts (D.O.O.)
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Tax residency, personal taxes, and rental income

You are generally considered tax resident if you spend 183 or more days in Montenegro during a 12-month period (or meet other local criteria). Non-residents are taxed only on Montenegro-sourced income. For employment income, the progressive PIT brackets are 0%, 9%, and 15% depending on income levels. Municipal surtax can also apply (13% in most municipalities, 15% in Podgorica and Cetinje).

Rental income (individuals) is taxed at 15% on the base after either documented actual costs or standard costs (typically 30% for long-term residential leases; higher standard deductions may apply to registered tourist rentals).

Practical tip: If you rent property (short-term or long-term), make sure the lease and tax registration are handled correctly. Tourist rentals also interact with the residence-tax regime noted earlier.

Driving and vehicles

Visitors can generally drive with a valid foreign licence short-term; an International Driving Permit is recommended if your licence isn’t in Latin script. After establishing residence, licence exchange is possible via the Ministry of Interior. Procedural specifics (such as proof of 185+ days’ residence) and paperwork apply—check current requirements before starting.

Property ownership by foreigners
Foreigners can freely acquire real estate in Montenegro with limited exceptions, such as certain border or security zones and cultural heritage properties. For typical residential and commercial property, title in a foreigner’s name is standard practice subject to due diligence and cadastral registration.
Documents you’ll need repeatedly

For most residency routes, expect to supply:

  • Police clearance (recent; apostilled/legalized as required)

  • Proof of accommodation (notarized lease or ownership proof)

  • Health insurance valid in Montenegro

  • Proof of financial means (bank statements, employment contract, etc.)

Everyday compliance: ID and cooperation with authorities
Foreigners should carry identification and present it on request by competent authorities. This is standard public-order practice across the region and helps avoid administrative issues.
Local notes (Podgorica, Budva, Kotor, Tivat)
Registration procedures and residence-tax amounts are set locally, so rates, office locations, and digital apps can differ by municipality. Always verify hours, fees, and forms where you actually stay.
FAQ
Frequently asked questions
We have put together some commonly asked questions.
Do I really have to register within 24 hours?
Yes. Registration is mandatory and tied to the local residence tax. Hotels usually do it; private stays require you or your host to handle it with the police or tourist office. Always keep proof.
Can I get temporary residence just by owning property?
Yes, property ownership remains a recognized basis for a one-year, renewable temporary residence, subject to documentation and local practice.
If I apply before my 90 days end, can I remain in Montenegro pending a decision?
If your application is complete and submitted on time, you may remain until a decision is made.
What’s the basic framework for working legally?

A temporary residence and work permit (single permit) is used for employment, seasonal work, or secondment. Show means of subsistence, accommodation, and health insurance; observe renewal deadlines.
How is tax residency determined, and what about rental income?
The 183-day presence test commonly applies for tax residency; non-residents are taxed only on Montenegro-sourced income. Rental income is taxed at 15% after standard or actual cost deductions. Municipal surtax may apply.
Can I drive on my foreign licence?

Short-term visitors generally can; carry an International Driving Permit if needed. After you become a resident, check procedures for exchanging your licence.