Montenegro's 2025 Tax Amendments: New VAT Rates and Corporate Tax Reforms

Montenegro is implementing new tax amendments starting in 2025, with major changes to VAT rates and taxable goods. A 15% VAT rate is being introduced for certain goods and services like books and hotel accommodations, while essential items like basic food, medicines, and medical devices will continue to be taxed at the reduced 7% rate.

In addition, the VAT zero rate that previously applied to large-scale projects in hospitality, energy, and food production will be removed, meaning companies in these sectors will now need to account for VAT. The changes are aimed at increasing tax revenues while maintaining lower rates for basic necessities.

There are also amendments to corporate and personal income tax laws, including new incentives for companies investing in agriculture and clearer rules on tax deductions for charitable activities. These reforms are designed to encourage investment in key industries and bring Montenegro’s tax system more in line with international standards.

For more details, you can read the full amendments in Montenegro’s Official Gazette:
Montenegro Official Gazette