Why Montenegro
Montenegro's independence declaration after the referendum held on 21 May 2006 gave a strong impulse to the further positive economic development and creation of the favorable investment climate.
During the past four years the Montenegrin Government has shown its determination and support to Montenegro's integration into the European Union and NATO. Montenegro's Application for EU Membership was submitted on December 15, 2008. Already next year EU granted a visa-free travel to Schengen-zone countries for the citizens of Montenegro.
After a very short period Montenegro has become a member of many international organizations and institutions. The Foreign Trade Law was adopted in April 2004 and in February 2005 Montenegro's application for membership in WTO was accepted. The Foreign Trade Law is intended to encourage investors and regulate foreign trade transactions in accordance with the international standards. WTO membership is supposed to make positive effect on economy growth by encouraging Montenegro's international trade, opening markets and stimulating the investments. Meanwhile, Montenegro has agreed on the bilateral trade commitments such as the Preferential Trade Agreement with the European Union, Free Trade agreement with Russia and Turkey. These agreements help to gradually eliminate quantitative restrictions and other barriers for the Montenegrin exports and many Montenegrin products are exempted from custom duties and charges. As well a preliminary declaration of cooperation was signed with EFTA countries (Switzerland, Norway, Iceland, and Liechtenstein) in December 2000 rendering possibility for the future free trade agreement between EFTA and Montenegro.
Montenegro has made a significant progress in regulation of the legislation in accordance with EU standards. The main Commercial, Trade, Tax and other Laws can be found at Montenegrin Investment Promotion Agency web site. Over 20 business-related laws were passed in order to encourage foreign firms to start business operations in Montenegro, to harmonize the tax system with EU and to make Montenegro more open and attractive to the foreign investors. Furthermore Montenegro has introduced the lowest corporate tax rate in Europe – 9%, personal income tax is 12% (planned to be reduced in 2010 to 9 percent) and VAT of 7% and 17%. All rates are flat.
The Business Organization Law, adopted in 2001, simplified the company registration procedure and created the necessary prerequisites for the foundation of the Central Register of the Commercial Court, which allows online searches for companies registered in Montenegro. Montenegrin law allows the establishment of six types of companies, among which the most common are: Entrepreneur, Limited Liability Company (d.o.o.), Joint Stock Company (a.d.), General partnership (o.d.), Limited partnership (k.d) and Part of a foreign company. According to an OECD survey, Montenegro has the lowest barriers for initial registration of a business in the region.
Montenegro has already attracted considerable interest from foreign investors. According to the «MONTENEGRO: 2010 INVESTMENT CLIMATE STATEMENT» issued by the Embassy of the US:
“Over 4,700 foreign-owned firms are registered and operating in Montenegro; the number of registered foreign companies has doubled in past two years. Foreign investors come from 86 countries, with no single country dominating investment. So far, the most significant investments have come from Norway, Austria, Russia, Hungary and Great Britain.”
The Montenegrin Law on Foreign Investment guarantees that foreign investors can establish a company and operate a business under the same conditions as locals do. This law makes no distinction between domestic and foreign companies, which can own 100 percent of a domestic company, and its profits and dividends can be repatriated without limitation or restrictions. Moreover there is limit neither on the amount of the investment nor on the investment fields. Foreign companies can also participate in the privatization process and own land in Montenegro. Complete equality has been guaranteed as well to the foreign investors operating in the Port of Bar – the first free trade zone in Montenegro. Free Trade Zone Law is adopted in compliance with EU legal standards and offers business benefits and exemptions from custom duties, taxies and other duties.
Montenegro offers a wide range of investment opportunities in the field of tourism, construction and real estate development.
Montenegro real estate is one of the main sources of the investment opportunities. Montenegrin Foreign Investment Law allows foreign investor or foreign company to make international real estate investment into commercial or residential property in Montenegro without any hindrance. Private property right protection has deep historical roots (land here has always remained private property and has never been expropriated) and this is reinforced by the Law on Property and Law Relations. It is worthy to mention that a foreigner can buy property the same way a local does. There are no limitations on the property size or the investor's nationality. Our real estate investment experts will assist you with drawing up the necessary documents and registering the purchase or sale of the property. Montenegro is one of just a few places, where real estate property investment can give an opportunity of aesthetic pleasure along with active income. Investing in Montenegro real estate is enhanced by relatively little red tape involved with the registration of real estate for sale, the whole procedure taking just a few days.
We will be pleased to help you with incorporating a business in Montenegro, provide full accounting and legal support, consulting in Montenegrin Law.
http://property-real-estate.net/property-list/listings.html – updated property, real estate in Montenegro
