Montenegro business hub to Europe, Business Environment
The country has created a reputation for itself as a pro-business hub that has attracted serious, reputable investors. Before the European debt crisis of 2010, Montenegro had an incredible 9 % growth rate per year and still sustains yearly levels around 5 %, which are almost unbelievable for European standards. The country has attracted increasing levels of FDI for five years in a row and is the European country with more FDI per capita, mainly thanks to a growth in energy investment.
A regional business center
First of all, Montenegro uses the euro, meaning there’s no inflation and a strong currency that’ll allow you to do stable business planning. Likewise, the country has a very straightforward, pro-business legislation and the government thirsts for FDI. The country has excellent telecommunications and a small yet practical and completely private financial services sector. Furthermore, the country has a privileged location, with a long seashore right at the Adriatic Sea, meaning the country is close to the Middle East, to Southern Europe, the Balkans, and the rest of Eastern Europe.
Attractive CBI program
We’ll talk about this in depth later, but Montenegro has the newest CBI program in the world. Its requirements are simple, and the necessary investment offers wonderful returns. Sooner than later, the program will give you an EU passport with visa-free access to more than 120 countries (more than Russia, China, and most Latin American passports) and will allow you to work, live, invest, study, and travel all across the EU.
Great tax system
The Montenegrin tax system is straightforward and incredibly friendly for investors. The corporate tax is 9 %, which will be the lowest in the EU after Montenegro has joined the Union. The VAT is 21 % but is 7 % for basic products and services, and the income tax is between 9 and 11 %. Capital gains are taxed at 9 %, rent income also has a 9 % tax, but is calculated over 60 % of the total revenue. Likewise, Montenegro offers a full exemption of the corporate tax (up to €200k) for eight years for companies willing to invest in the North Region. The country also has around 40 double-tax treaties that will protect your income and your investments if you decide to relocate to Montenegro.
Wonderful life quality at a small cost
For its small size, Montenegro has many geographical contrasts: mild Mediterranean climate near the coasts, and mountainous climate in the center. Plains and river valleys with tons of arable lands and arid mountains perfect for cattle ranching. Likewise, it has a rich culture and history and serves as a middle way between the West and the East, and between three religions (Orthodox, Catholicism, and Islam). Likewise, in general, life is comfortable in the country, and costs are low. Yes, it’s a small country, but you can find comfort and everything you may be used to in larger cities for a fraction of the cost.
The key has been six main economic policies:
1.A legal frame open to foreign investment,
2.Monetary stability thanks to the euro,
3.Reduced business regulation,
4.Attractive and simplified tax regime,
5.Free capital flow,
6.Privatization of public assets, which has surpassed 80 %. All that has placed Montenegro as be the best-performing Balkan country at the Freedom of Economic Index.
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