Tax on long-term rent of an apartment in Montenegro

Tax on long-term apartment rental in Montenegro

When renting out an apartment for a year, the owner pays a personal income tax of 15% on net profit.
Important: the tax is calculated not on the full rental amount, but on the profit after deducting presumed expenses.
The government assumes that 30% of the income represents maintenance costs, and 70% is your net profit.

Example of tax calculation:

Rent: €700 / month
€700 × 12 months = €8,400 per year
€8,400 × 0.7 (net profit) = €5,880
€5,880 × 0.15 (tax rate 15%) = €882

Annual tax amount: €882

The rental agreement must be notarized.
Without notarization, the contract is not considered legally valid.