Welcome to Montenegro, a hidden gem in the Balkans that offers a unique blend of Mediterranean beauty and a favorable living environment for digital nomads, expats, and location-independent workers. If you're considering making Montenegro your new home and wish to obtain tax residency, follow these detailed steps to ensure a smooth transition.
Step 1: Entry Visa and Stay Permit
Before you can apply for tax residency, you need to enter Montenegro legally. Depending on your nationality, you may require an entry visa. Once in Montenegro, you must apply for a temporary stay permit. This permit is typically valid for one year and can be renewed. The application for the stay permit should be submitted to the Ministry of Interior or the local police department in the area of your residence.
Step 2: Residential Address Registration
Upon obtaining your temporary stay permit, you must register your residential address in Montenegro. This is done at the local police station or the municipal office in your area of residence. You will need to provide proof of your address, such as a rental agreement or property ownership documents.
Step 3: Establishing Physical Presence
To be considered a tax resident, you must be physically present in Montenegro for at least 183 days within a calendar year. Ensure you keep records of your stays, such as entry and exit stamps in your passport, to prove your physical presence if required.
Step 4: Application for Tax Residency Status
Once you meet the physical presence requirement, you can apply for tax residency status. This application is submitted to the Tax Administration of Montenegro. You will need to provide various documents, including your temporary stay permit, proof of address, and records of your physical presence. The Tax Administration will review your application and, if approved, issue a certificate of tax residency.
Step 5: Notification of Foreign Income
If you have income from foreign sources, you must notify the Tax Administration of Montenegro. While this may not affect your tax liability immediately, it is a legal requirement to declare all sources of income. This ensures compliance with Montenegrin tax laws and helps avoid potential legal issues in the future.
Step 6: Maintain Compliance
After obtaining your tax residency, it is crucial to maintain compliance with all Montenegrin laws and regulations. This includes renewing your temporary stay permit annually, updating your residential address if you move, and filing annual tax returns. Staying compliant ensures that you retain your tax residency status and enjoy the benefits thereof.
Legal References
- Law on Foreigners (Official Gazette of Montenegro, No. 12/2018)
- Law on Personal Income Tax (Official Gazette of Montenegro, No. 65/2001, 37/2004, 78/2006, 04/2007, 86/2009, 14/2012, 62/2013, 60/2014, 77/2017)
- Rulebook on Tax Residency (Official Gazette of Montenegro, No. 35/2019)
- Law on the Register of Temporary and Permanent Residence (Official Gazette of Montenegro, No. 41/2010, 40/2011, 44/2012)
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