About taxes in Montenegro
Montenegro's "Europe Now" reform created one of the simplest tax systems in Europe. Personal income tax on employment income uses a three-bracket progressive scale on gross monthly salary: 0% up to €700, 9% on the slice between €700 and €1,000, and 15% above €1,000. The local PIT surtax that municipalities used to add on top (13% in Podgorica, 15% in Cetinje) was abolished from 2024, so there is no longer any regional variation. Employee social contributions are intentionally light: 15% of gross goes to mandatory pension and disability insurance, and 0.5% to unemployment insurance. The employee health-insurance contribution was abolished from 1 January 2022 — healthcare is now funded from general budget revenues. Total employee deductions therefore sit around 15.5% in social charges plus a low single-digit effective PIT rate. Montenegro unilaterally adopted the euro in 2002 and all salaries are quoted in EUR, so no currency conversion is needed. The tax year is the calendar year; employers withhold PIT and contributions monthly and file annual reconciliation through the Tax Administration (Uprava prihoda i carina).