Montenegro Citizenship by Investment

Short History: This small nation has a fascinating and complex history. The early Balkan tribes, Illyrian, were joined by Celtic and Roman settlers. First conquered by the Romans and then incorporated into the Byzantine Empire, the region was then joined by Slavic inhabitants from Poland and the Baltic. 

For many decades, Serbs controlled the region and the area of present-day Montenegro held out from Ottoman rule. Throughout the years, Montenegro established itself as a separate region and continued to strive for independence. It finally achieved recognition from the UN on July 27 2006 as the 192nd member state.

Taxes: In general, Montenegro has a low tax rate and a simple tax system. Most people pay a rate of 9% on personal income tax, and income above the average is taxed at 11%. There is also a surtax imposed by Montenegro municipalities on personal income at a 15% rate of what is paid in taxes to the federal government. Non-residents are required to pay 5% interest income tax. 

The corporate tax rate is also 9% and applies to capital gains and interest income as well. As it is relatively easy to set up a business in Montenegro and have a low taxation scheme, many foreign nationals prefer to establish a company over finding work. If a new company is operating exclusively in underdeveloped areas of the country, they may be granted an exemption from the corporate tax rate. Double tax treaties have been signed with a majority of EU countries as well as the UK, Russia, China, and Switzerland.

Advantages & Disadvantages of the Citizenship: The advantages of gaining citizenship through the Montenegro Citizenship by Investment program are the low taxes and the relatively cheap cost of living. Although the country and the program are new, the history and natural landscape of the region is not. With sunny, warm coastal areas and cool, mountainous and wooded areas, Montenegro is a vibrant place to explore. Additionally you will enjoy 124 visa free countries as a citizen of Montenegro.

The disadvantages include difficulty in mastering the language, having access to specialized medical treatment, and navigating daily life in a small country. However, Montenegro is quickly implementing new policies and initiatives to catch up with the rest of Europe and many foreign nationals have already found a place of opportunity in the new country.

Languages: Montenegrin is the official language of the country and can be a difficult language to learn. While many restaurants and services in the tourist areas of the country speak English, acquiring the local language is a must for foreign nationals looking to reside in Montenegro.

Healthcare: Healthcare services in Montenegro are a mix of both private and public care. Since the country is new, medical care is still improving to meet the standards of other European countries. Foreign nationals often purchase insurance policies that include medical evacuation so that appropriate treatment for specific cases can be treated out-of-country.

Retirement: Although Montenegro has no specific retirement program, the advantages of low taxes and affordable real estate has drawn many retired foreign nationals to the country. Montenegro also has several agreements with other countries so that retired foreign nationals can maintain part or all of their health and pension benefits. The other benefit is the low cost of living compared to other European countries, maximizing retirement potential.