Incentives for Investors

The southern part is perhaps the most attractive region to both visitors and investors. Consequentially, this is the most competitive region as well. Tourism is the main economy branch for the region and in the past ten years it has experienced significant growth in touristic capacities, offer and money returns to the investors.

With future projections which include building of most luxurious resorts and brands together with combination of rich history and culture, it is a guarantee that the region will be able to support long-term businesses of various kinds.

Bar

Incentives for Investors

Business environment in the municipality of Bar is characterized by waiving of utility equipment fess for construction land.

Utility equipment fees for municipal construction land are decreased by:

• 70% – facilities intended for manufacturing or processing industries or storage;
• 20% – primary catering facilities offering services of accommodation and serving food and beverages, with the exception of hotel groups;
• 50% – primary catering facilities offering services of accommodation and serving food and beverages, hotel groups;
• 65% – above ground garages as individual facilities or as a part of a facility.

Investors are exempt from paying statutory fees or any fees for the construction and reconstruction of residential buildings and industrial facilities in rural areas inside zone VII

Budva

Incentives for Investors

• The Municipality of Budva makes it possible to pay the property tax in two instalments and the discount on municipal fees payable to the construction of 4 and 5 star hotels.
• In case of developing 4 and 5 star hotels, based on the Decision of the Local Assembly of Budva, a 75% discount on the fee for the provision of utility infrastructure is available for construction in the exclusive first zone. Based on the above, the fee for the provision of utility infrastructure for 4 and 5 star hotels is 32 € / m².

Herceg Novi

Incentives for Investors

• Herceg Novi Municipality has yet to define the incentives and benefits for investors, but the planned adoption of the stimulus package will significantly improve the business environment in the municipality.

Kotor

Incentives for Investors

The Government of Montenegro pays a lot of attention to direct foreign investment and for that purpose numerous laws and regulations have been adopted that protect the rights of foreign investors.

In this regard, it is necessary to mention the Law on Foreign Investments (from 2011) and the Decree on Incentives for Direct Investment (Official Gazette of Montenegro No. 80/15). Another relevant policy documents include Montenegro Development Directions 2015 – 2018, Montenegro Economic Reform Programme 2015 – 2017, and the Strategy for the Development of Manufacturing Industry in Montenegro 2014- 2018. Key institutions to support investments are the Foreign Investors Council, the Ministry of Economy and the Agency for Foreign Investments.

The 9% corporate profit tax is the lowest in the region.

The Agency for Foreign Investment and the Municipality of Kotor provide investors all the necessary “after care” services to facilitate their investments. The fast-track process of developing, or amending the planning documents, to mutual benefit of investors and the municipality of Kotor, is another facility made available to investors who own at least 10 ha of land.

Tivat

Incentives for Investors

The Municipality of Tivat has introduced benefits in the form of reduced fees for utilities by 80% for all investors in hotels with four stars or more, as well as for investors who invest in production capacities.

The existing Decision on Fees for Provision of Utility Infrastructure to Construction Land established a whole set of incentives for construction, such as:

• waiving of utility fees in the amount of 70% for condo, apart and garni hotels;
• waiving of utility fees in the amount of 100% for facilities intended for production, processing and storage;
• payment of utility fees in installments;
• for primary homes, fees are reduced by 70%;
• the fee for provision of utility infrastructure is reduced by 200 €/m² of solar collectors or panels, for investors who build facilities that employ solar systems for water heating, space heating and cooling;
• for the construction of underground and above-ground garages, the fee for provision of utility infrastructure is reduced by 50%.

Also, the Microcredit Fund was established in 2011 by the Municipality of Tivat, together with a commercial bank and the Investment and Development Fund for lending to entrepreneurs and small and medium enterprises under the conditions that are significantly more favorable than those that currently exist in the market (interest rate, collateral, grace period).

Ulcinj

Incentives for Investors

The municipality of Ulcinj has defined by a municipal decision the set of incentives for investments in the Business zone “Vladimirske krute.” Prospective Business Zone users are:

• exempted from paying property tax for a period of 8 years from the date of commencement of the activity.
• exempted from payment of surtax to personal income tax for a period of 8 years from the date of commencement of the activity.
• exempted from paying a fee for provision of utility infrastructure.
• allowed to lease land for 10 years based on the number of employees and leased land area.

The central region is the administrative core of Montenegro. Since regaining its independence, the capital city of Podgorica has attracted businesses from around the world. The geographical position of Podgorica makes for a perfect logistical spot for any kind of business which has intentions of branching out towards the whole region.

Both the International Airport and the bar port are easily accessible from the Central area, which allows fast connections to the world..

Cetinje

Incentives for investors:

The trading environment in Cetinje is characterized by significant incentives defined by a large number of programs for investors.

Incentives for investments in trade zones

Investments from scratch

-Reduction of fees for the supply of public services infrastructure

. Between 20 and 50% for newly created jobs

. 50 to 100% for newly created jobs

. 100% for more than 100 newly created jobs

– Local government finances an employed trainer for every ten employees

– Development of free trading plan

– A personal consultant is assigned to investors who create more than 100 jobs under the direction of the municipality.

Abandoned Industrial Zone investments

-Lowering fees for the supply of public services infrastructure

. Between 20 and 50% for newly created jobs

. 50 to 100% for newly created jobs

. 100% for more than 100 newly created jobs

– Reduction of property tax for the facilities needed for the investment project

. Between 20 and 50% for the first two years for newly created jobs

. For jobs newly created between 50 and 80, 100% plus 50% for the next two years

. For more than 80 newly created jobs, 100% plus 50% over the first four years for the next two years

– Development of free trading plan

– A personal consultant is assigned to investors who create more than 80 jobs under the leadership of the municipality

Investment incentives in land lease

Investment in zero and abandoned industrial zones

-Lowering fees for the supply of public services infrastructure

. Between 10 and 30% for newly created jobs

. 30 to 50% for newly created jobs

. 80% for more than 80 newly created jobs

– Reduction of property tax for the facilities needed for the investment project

. Between 10 and 30% for the first two years for newly created jobs

. For newly created jobs between 30 – 50% plus 100% for the first year and 50% for the next second year

. For jobs newly created between 50 and 80, 100% plus 50% for the third year

. For more than 80 newly created jobs, 100% plus 50% for the first three years, for the fourth year

– Local government finances an employed trainer for more than 80 jobs, for every ten employees

– Development of free trading plan

– A personal consultant is assigned to investors who create more than 100 jobs under the direction of the municipality.

Incentives for investments outside the trade zone

– 5 – 15 for newly created jobs

– 500 euro / newly created business support

-Lowering fees for the supply of public services infrastructure

– Local government finances an employed trainer for every ten employees

– Development of free trading plan

– 15 to 30 for newly created jobs

– 800 euro / newly created business support

– 70% reduction of fees for the supply of public services infrastructure

– Local government finances an employed trainer for every ten employees

– Development of free trading plan

– 100% reduction of property tax for the first two years for the facilities needed for the investment project

– 30 to 50 for newly created jobs

– 1.100 euro / newly created business support

– 80% reduction of fees for the supply of public services infrastructure

– Local government finances an employed trainer for every ten employees

– Development of free trading plan

– 100% increase in property tax for the first two years and 50% decrease in the third year for the facilities needed for investment project

– For jobs created between 50 and 80

– 1,500 Euro / newly created business support

– 80% reduction of fees for the supply of public services infrastructure

– Local government finances an employed trainer for every ten employees

– Development of free trading plan

– 100% reduction of property tax for the first three years for the facilities needed for the investment project

– For investors who create more than 80 jobs, a personal consultant is appointed under the chairmanship of the municipality.

– For more than 80 newly created jobs

– 2000 Euro / newly created business support

-100% reduction of fees for the supply of public services infrastructure

– Local government finances an employed trainer for every ten employees

– Development of free trading plan

– to reduce property tax for the first three years by 100% plus 50% for the next two years for the facilities needed for the investment project

– For investors who create more than 80 jobs, a personal consultant is appointed under the chairmanship of the municipality.

Tourism Development Programme

Construction of new facilities and reconstruction of existing facilities

– 20 – 40 beds for facilities

– 60% reduction of fees for the supply of public services infrastructure

– 40 – 80 beds for facilities

– 80% reduction of fees for the supply of public services infrastructure

– 100% reduction of property tax for the first two years for the facilities needed for the investment project

– For bed facilities over 80

– 90% reduction of fees for the supply of public services infrastructure

– 100% reduction of property tax for the first two years for the facilities needed for the investment project

Kolasin

Incentives for investors

Investors who start their activities within the zone will benefit from the following incentives::

– industrial companies will be able to purchase Facilities for certain commercial activities under favorable conditions.

– full exemption from the cost of procurement of public services infrastructure to construction land

– the land can be rented for a period of 30 years

– Exemption from real estate tax for a period of 8 years

– Exemption from additional taxes on income tax for a period of 8 years

– 100% deduction from profit tax for the first 8 years of the operation for any manufacturing enterprise

– 100% discount on personal income tax during the first eight years of the operation for manufacturing enterprises to start operations

Investors engaged in activities outside the trade zone shall benefit from the following incentives::

– full exemption from the cost of procurement of public services infrastructure for construction site for manufacturing and processing facilities

– 100% deduction from profit tax for the first 8 years of the operation for any new manufacturing enterprise

– 100% discount on personal income tax during the first eight years of the operation for manufacturing enterprises to start operations

– Hotel entrepreneurs with 4 stars and above are exempt from the cost of procurement of public services infrastructure on the construction site.

Mojkovac

Incentives for investors

The incentive package for investments within the trade zone is defined by the municipal decree and includes::

– for a period of ten years which can be renewed for an additional ten years, depending on the category or area of the facility, for manufacturing activities, the amount of € 0.05 / m2 of land lease;

– for a ten-year period which can be renewed for an additional ten year period, depending on the category or size of the facility, for wholesalers, a € 0.05 / m2 technical land lease per year;

– Exemption from the procurement fee of public service infrastructure to construction land for investors who employ more than 10 workers

– 85% discount on the procurement fee of public service infrastructure to construction land for investors who employ between 6 and 10 workers;

– 70% discount on the procurement fee of public service infrastructure to construction land for investors who employ between 3 and 5 workers

– during the period of land rental, 80% discount on profit tax.

Niksic

Incentives for investors

– 50% discount on the procurement fee of public service infrastructure to construction land

– 75% discount on standard property tax base

– Exemption from additional taxes on personal income tax

Podgorica

Incentives for investors

To encourage investments in the capital, Podgorica launched the following stimulus package:

For investors operating within the trading zone:

– Free use of land for up to 30 years

– The exemption of procurement fees of public services infrastructure on construction site in accordance with the decision on procurement fees of public services infrastructure on construction site provided that the investor pays the infrastructure costs himself.

– Exemption from annual fee for use of municipal roads within the trade zone for 5 years

– In accordance with the decision on property tax, exemption from property tax for 5 years.

The north of Montenegro is a region full of natural beauties. With a long history of healthy food production, the region has tremendous agricultural potential. The majority of the region has not yet been disturbed by moderation and has not been touched to nearly all of the breathtaking attractive points.[/dt_sc_blockquote]

The development of the region is strongly supported by the government through some of the most beneficial subsidies for the investors.

Berane

Incentives for investors:

The land which is free to use for a period of 10 years, with the obligation to create new jobs in the following ways:

– 3 – 5 areas up to 2500 m2 provided that workers are employed

– 6 – 10 areas up to 5000 m2 provided that workers are employed

– Areas up to 10.000 m2, provided that 20 workers are employed.

Waiver of fees for the supply of public service infrastructure (temporary or permanent depending on the type of facility))

– Wages to be paid up to 50% of the construction fees of commercial buildings for industrial and social facilities, for public services infrastructure

– Fees to be paid up to 50% of the construction fees of commercial buildings for the construction and installation of temporary structures in order to carry out business activities

– For the construction of permanent auxiliary facilities (garages, warehouses and warehouses), commercial buildings must be paid up to 50% of the construction fees

– Possibility of dividing the land into smaller parcels – setting the areas in accordance with the requirements of the investment project, in accordance with the requirements of the investors concerned.

– Abolishing administrative boundaries.

Bijelo Polje

Incentives for investors:

Incentive package for investors is defined by the municipality of Bijelo Polje to cover::

– Exemption from payment of road land use fees for a period of 3 years

– If more than 5 new jobs have been created as a result of the investment, exemption from payment of fees for the development of construction land of up to 700,000 euros for individual newly hired workers or newly opened jobs

– Exemption from the payment of municipal fees for a period of 3 years

– Exemption from the payment of additional taxes on personal income tax for a period of 3 years

– Exemption from the payment of the real estate tax over 0.1% of the market value of the real estate for a period of 3 years

– Companies and entrepreneurs will be given building permits within 15 days after the submission of full documents to regulate the building permits.

– The “abandoned industrial zone”of “Vunko”, a former Textile Industry Company, will be available, depending on the number of newly employed workers.

Petnjica

Incentives for investors:

– The Petnjica municipality has made a decision on incentives and facilities for investors. The municipality grants the investor an exemption in terms of public services and municipal fees if he / she makes an investment of € 150,000 and employs 5 or more workers.

Pluzine

Incentives for investors:

For investors engaged in business within the scope of activity:

– Free use of land for up to 30 years

– The exemption of procurement fees of public services infrastructure on construction site in accordance with the decision on procurement fees of public services infrastructure on construction site provided that the investor pays the infrastructure costs himself.

Rozaje

Incentives for investors:

In economically less developed municipalities, newly established legal entities engaged in manufacturing activities are exempt from corporate profit tax for the first three years. Tax exemptions or deductions are related to tax payers operating in the private sector related to manufacturing, agriculture and transportation.

Procurement fees of public services infrastructure on construction site will be reduced by 50 € / m2 of the built solar collector panel on facilities built using solar energy systems for water heating, space heating, space cooling or electricity generation. The fee is reduced after the construction of the facility. If the reconstruction of the facility remains within the existing dimensions, if the newly constructed areas do not reveal and does not require the provision of another public service infrastructure, no fee will be charged. Fees charged; in monthly installments or in the amount of 15% discount on the calculated amount of the investor will be paid as a total amount within 30 days.

Savnik

Incentives for investors

– In order to improve the operating and investment environment, to encourage construction and investments, the Municipality has decided on the procurement fees of public services infrastructure. The fee is calculated for each m2 of the constructed, re-constructed, additional, restructured area based on approved planning documents based on the following prices::

– For commercial facilities in the first region, the fee is reduced between 40 and 20€; for commercial facilities in the second region between 35 and 5€ and for those in the third region between 25 and 0.5€.