10 reasons to invest in Montenegro
1.Stability and safety
Montenegro has proved to be a safe, politically stable and economically viable state with the potential to grow. The process of EU integration emphasized not only market accessibility, but acceptance of new values such as rule of law and property rights protection. Simultaneously, integration into NATO is a safety mechanism in the sense of the collective defense guarantees provided by NATO and its legal system. Montenegro has clearly committed itself to a collective security system as a framework of the accomplishment of its security and defense objectives. Montenegro has liberalized its visa regime with access to the Schengen zone countries, ratified the Stabilization and Association Agreement and received status of EU candidate country.
2.Dynamic economic growth and development
Since the introduction of German mark in November 1999, and later the Euro in February 2002, the country had significant success in creating a favorable business climate and in attracting reputable foreign investors. Those have played a crucial role in signaling to others that Montenegro is an attractive investment destination. This was possible due to the overall course of economic reforms that rely on: (I) openness, (II) monetary stability, i.e. the euro as a legal tender, (III) low level of business regulation, (IV) low level of taxation (with corporate income tax amounting to 9%, and personal income tax is also 9%); (V) free regime of capital flows; (VI) low level of state involvement in the economy (less than 12%). On top of that already privatized telecommunication, banking sector, import and distribution of gasoline, services. Still remaining state owned companies will be privatized and economic development will be dynamic in the foreseeable future.
3.Strategic geographic location
About 500 km from Rome and Belgrade, 1500 km from Paris, Berlin and about 2000 km from Moscow, Montenegro lies on the Balkan Peninsula in the very heart of Europe.
- Two international airports: Podgorica and Tivat
- Sea ports: Bar, Kotor and Zelenika
- Ferry boat: Bar-Bari-Bar, Bar-Ancona-Bar
- Railway: Bar – Podgorica – Belgrad – Budapest
- Total length of roads: 6000 km
- Total length of railway: 330 km
4. Hub for regional business
Montenegro can be your regional business hub for the following reasons:
- Currency. The country is using euro, that means no hidden inflation and it is easy to calculate a consolidated balance sheet and income statements for your firms.
- Openness. Perhaps the most important factor of all. This country with its forward-thinking legislation and with straightforward, friendly people is very open to business with you.
- Financial services – with the commercial banks, all of them private and many owned by European banks, doing business in Montenegro, the region and the rest of the world is made easy.
- Telecommunication. Excellent connection with the rest of the world via optical cables, and fast Internet-based service represent a good foundation for your business communication.
- Connectivity. Flight connection: with daily flights to all regional capitals and major cities in Europe, it is easy to travel to Montenegro for business and leisure. Port of Bar: with favorable geographic position (42 0’ North latitude and 19 05’ East longitude), together with the railway line Belgrade-Bar and the road network represent a compatible traffic system that enables rational connections to the Port and its surrounding area. New highway from North to South of the country is under construction.
5.Favorable Tax Climate
The Montenegro Tax system is a flat one. Very few countries in the world have a flat system, and that itself creates a lot of advantages, simplicity above all.
In addition, all major taxes in Montenegro are very competitive with respect to other countries in the region and in Europe, and in many aspects Montenegro is working to make its tax system even more attractive. The Corporate Income Tax, which is equal to 9%, is the lowest in the region. The VAT rate amounts to 17% with the implementation of the rate of 7% on some categories of products and services. Personal income tax is also 9%.
All investors are able to remit dividend and interest profit in the full amount without any restrictions.
6. Pro-business government
The regulatory process in Montenegro is open and transparent. The business community is welcome to provide comments on draft legislation. Draft laws before the Parliament can be found on the Parliament website. Legislation, once it is passed, is published in an Official Gazette. All national legislation is available via the Internet in the local language, while the majority of it is available in English as well. In addition to that, almost all major strategies adopted by the Government of Montenegro, are also available in English.
All firms registered in Montenegro are under the Commercial Court’s legal authority. The Court maintains a computerized registry and provides a public access to company information.
A substantial body of laws protects foreign investors. Pursuant to the Foreign Investment Law, foreign investors enjoy the same legal status, and have the same rights and obligations as local investors. A foreign investor may establish a company in the territory of Montenegro, or invest in a company’s assets in accordance with the same procedures and meeting the same requirements as applied to the residents. According to the Business Organization Law, foreigners can be directors and members of the board within the companies.
7. Equal treatment to foreigners
The Law guarantees the foreign investors equal treatment. They can freely set up a new company, invest in it or buy an existing company or share of a company.
Foreign persons can have property rights on movable or fixed assets and property, and have inheritance rights, the same as Montenegrin persons, as well as free transfer of assets and property to foreign or domestic legal and natural persons.
There is no limit on the amount of invested capital. Foreign investors are allowed to invest in any industry, except the military industry where foreign investors can invest up to 49%, and freely transfer all financial and other assets, including profits and dividends. All major national and international investment insurance companies insure investment projects in Montenegro.
8. Excellent quality of life
Two UNESCO world heritage sites are located in Montenegro: the old town of Kotor as a cultural heritage site and Durmitor national park as a natural heritage site. Cultural life in Montenegro is quite rich. There are over 1000 sports clubs there. A large number of the restaurants, coffee bars and services support your business needs, together with 240 sunny days in the coastal area, offer a strong foundation for an excellent quality of life. Local healthy organic food contributes to that also.
9. Easy business start-up
Registering a business in Montenegro is an easy process. Minimum founding capital is 1€ and fees are 22€. The whole process is complete within 4 days and if you do not receive a registration within that time frame you are considered automatically registered. Also, all documents regarding registration should be submitted to the tax authority. Montenegro has introduced a one window system for registration within the Tax Authority. With a single document you can obtain your Tax ID and VAT number, as well as regulate your health care and pension contributions.
10. Additional advantages
Ulcine area has additional advantages for investments like cheap labour, multicultural and multiconfessional environment, low land prices, adequate reserves and supply of drinking water.