Economy of Montenegro

Montenegro joined the World Trade Organization on 29 April 2012. Montenegro joined the North Atlantic Treaty Organization on 5 June 2017.

Top Sectors in Montenegro

Infrastructure in Montenegro

In the 2007 Great Recession, economic growth slowed as several infrastructure projects, such as the development of Velika PlaÅ¾a, Ada Bojana, Buljarica, Jaz Beach, and the construction of the Bar-Boljare motorway and new power plants, had to be postponed. The Port of Bar is the country's primary communication with maritime trade. Its terminal is specialized in bulk shipment of bauxite and other ores, grain, wood products, acetic acid, and petroleum derivatives. In 2019, its allowable draft was reported as 12.8m and several private storage tanks exist on site to service trade. Ro-Ro traffic from Bari and Ancona is handled through an operational quay which is 400m long with water depth of between 4m and 5.9m.

Tourism in Montenegro

With 300km of coastline, backed by mountains, Montenegro is proving to be a desirable holiday destination and generated around 25% of Montenegro's GDP. Montenegro prefers luxurious and upscale projects to attract tourists, encouraging foreign investment to create the facilities.

Energy in Montenegro

Elektroprivreda Crne Gore (EPCG) is the mainly state-owned coal and power producer and distributor which owns two large hydroelectric plants and a coal-powered thermal power plant. Two wind power farms are in operation, Krnovo Wind Farm and MoÅ¾ura Wind Farm, which generate a total of 118MW. In June 2023, APCG obtained â‚¬82m finance to build the Gvozd wind farm, which will generate 54.6 MW. A new wind farm, the Bijela wind farm, is planned with a 118MW capacity following UAE-based Alcazar Energy acquiring the rights in 2023 to spend $200m building the farm. In 2023, Montenegro exported around â‚¬200m worth of electricity (2022 â‚¬140m), becoming the top export item for the country.

Agriculture in Montenegro

Since 2010, agricultural trade relations between the EU and Montenegro have been governed by the EU-Montenegro Stabilisation and Association Agreement, and with the exception of beef, sugar, and wine, all agricultural products originating in Montenegro can enter the EU duty-free. The EU has a large agri-food trade surplus with Montenegro, exporting meat, dairy, and food preparations. The EU mainly imports vegetables such as mushrooms, wine, and oils from Montenegro. It was reported by the EC Directorate-General for Agriculture and Rural Development in March 2019 that the share of agriculture in Montenegro's GDP was 8%. Agricultural land accounts for 38% of the total.

Montenegro - Key Economic Indicators

Exports & Imports

Montenegro's main exports are aluminum, refined petroleum products, and tourism services. They import a wider variety of goods, including machinery, fuels, and chemicals.

Balance of Trade

Montenegro typically runs a trade deficit, meaning the value of imports exceeds exports. This is partially offset by revenue from tourism.

Infrastructure Development

Montenegro is continuously developing its infrastructure. Road networks are a priority, with projects aiming to improve connections to neighboring countries and ports. The total road length information can be found on official government websites or through infrastructure investment reports by international organizations.

Fiscal Policy

Montenegro strives for fiscal consolidation, aiming to control government spending while maintaining a balanced budget. Taxation policies are designed to attract foreign investment with a flat tax rate.

Monetary Policy

Montenegro uses the Euro as its official currency. Since they are not part of the Eurozone, they cannot set their own monetary policy. The European Central Bank dictates monetary policy for the Eurozone countries.

Trade Agreements

As a member of the World Trade Organization (WTO), Montenegro enjoys trade benefits with other member countries. Additionally, they benefit from duty-free access to the US market for certain goods through the Generalized System of Preferences program.

Environmental Regulations

Montenegro is an aspiring EU member state and has adopted many European environmental regulations. These regulations focus on areas like pollution control, waste management, and nature conservation.

Tax System in Montenegro

Capital gains tax: A flat 9% tax applies to profits from investments held for more than one year.
Corporate tax rate: Montenegro uses a progressive corporate income tax system. The rate depends on your business's profits: (i) Up to €100,000: 9% (ii) €100,000.01 to €1,500,000: 9% + 12% on the amount exceeding €100,000.01 (effectively 18.6%) (iii) Over €1,500,000.01: €177,000 + 15% on the amount exceeding €1,500,000 (effectively 29.25%).
Sales tax (VAT): Montenegro has a standard VAT rate of 21%. A reduced rate of 7% applies to specific goods and services like basic foodstuffs.
Property tax: Property tax rates in Montenegro vary depending on location and property type. They generally range from 0.25% to 1% of the property's value.
Payroll tax: In Montenegro, both employers and employees contribute to social security through payroll tax.
Tax deductions and credits: Montenegro offers tax deductions and credits for certain situations, including: (i) Investment in specific sectors (ii) Business expenses (iii) Social security contributions.
Tax compliance: Montenegro's tax compliance is considered moderately efficient. The government is actively working on improving tax collection.
Tax burden: Compared to some European countries, Montenegro has a moderate overall tax burden for individuals and businesses. The government uses a low-tax strategy to attract foreign investment.

425 Live Notices for Montenegro ....

Showing 1 to 20

Supply of Pellet

Montenegro

07 Oct 2025

21 Oct 2025