Accountant in Montenegro: A Complete Guide to Taxes and D.O.O. Support for Residence Permits

Accounting services in Montenegro are essential for any non-resident conducting business or receiving rental income from real estate. Despite low tax rates, Montenegro has strict and dynamically changing legislation that requires meticulous accuracy in document preparation and reporting. Attempting to manage your accounting independently often results in fines, account blocking, and the loss of the opportunity to renew your residence permit.

Accounting Services in Montenegro from GoMonte

GoMonte has been providing accounting services in Montenegro (Budva) for over 5 years and offers its clients full financial accounting outsourcing. We handle company registration (DOO), monthly payroll calculations, filing all forms with the Tax Service and the Funds, and also provide consultations on obtaining a residence permit through business. Our goal is to provide you with complete financial and legal security, so you can focus exclusively on growing your business in the Adriatic.

Get a consultation with a Russian-speaking accountant in Budva now: +382 67 322 888 Viber/WhatsApp/Telegram

Our professionals' primary focus is legal compliance (from monthly tax and contribution payments to annual financial reporting) and tax optimization. A qualified specialist will help you legally reduce your tax burden, properly structure your expenses, and, crucially for foreigners, prepare all the necessary documents to confirm your financial solvency when renewing your residence permit.

Below in this article, we will discuss the legal obligations of a DOO and the cost of an accountant.

1. Legal Obligations of a DOO (LLC)

1.1. Mandatory Accountant (Zakonska Obaveza)

Is every DOO required to have an agreement with an accountant? Yes, this is a legal requirement. According to the Accounting Law, every registered company in Montenegro is required to maintain accounting records and have a contract with a licensed accountant or accounting firm. Failure to comply with this requirement automatically entails administrative sanctions.

1.2. Types of Accounting

The choice of accounting method depends on the company's size and turnover:

• Simple Accounting (Prosto knjigovodstvo): Available to micro-enterprises that meet certain criteria for turnover and number of employees. Accounting is conducted using the cash method.
• Double Accounting (Dvojno knjigovodstvo): Mandatory for most LLCs and is the basis for the preparation of accurate financial statements, allowing for the adequate assessment of profits, losses, and tax liabilities.

1.3. Accountant's deadlines and types of reports

An accountant's work is strictly regulated by a reporting calendar:

• Monthly reports: These include VAT (PDV) reports if the company is a taxpayer, as well as mandatory monthly payroll and tax reports submitted to the Tax Office.
• Annual reports: The most important stage is the submission of the annual financial statements, including the balance sheet and profit and loss statement. This report must be submitted to the Central Register of Business Entities (CRPS) by the end of March of the following year.

1.4. Fines and penalties for late filing of reports

Failure to meet deadlines or submitting documentation incorrectly carries high penalties:

• Fines and penalties for late filing of reports can range from €500 to €20,000 for a legal entity, and from €50 to €2,000 for the responsible person (director).
• In addition to fines, systematic violations can lead to the freezing of the company's bank accounts, the revocation of licenses, and, critically for foreigners, the denial of a residence permit renewal based on the company's incorporation.

2. Tax Support and Benefits for Your Business

A low tax burden is one of the key advantages of doing business in Montenegro. Professional tax support ensures you fully utilize these benefits while avoiding risks.

2.1. Calculating and Paying Corporate Tax (9%)

Montenegro offers one of the lowest corporate tax rates in Europe—just 9%. Our goal is not only to accurately calculate taxes but also to minimize the tax base within the law. This is achieved by accurately recording all verified expenses related to the DOO's activities (salaries, rent, purchases, etc.), allowing you to legally reduce taxable profits.

2.2. VAT in Montenegro: Registration, Limits, and Refunds

The standard VAT rate in Montenegro is 21%. VAT registration is mandatory if your annual turnover exceeds €30,000.

VAT payers are entitled to a VAT refund on purchases and expenses incurred for business purposes. Our accounting department ensures timely and accurate monthly VAT reporting, which is critical for effective cash flow management and refund receipt.

2.3. International Payments: Currency Control

When working with foreign partners and contractors, strict compliance with local legislation is essential:

We provide full currency control for all incoming and outgoing international payments. This includes verifying the compliance of contracts and invoices and the timely submission of required reports to the bank and the Tax Service, preventing fines for currency violations.

2.4. Taxation of Dividends and Withdrawal of Founder's Funds

The process of withdrawing net profits for founders is as transparent as possible:

• After paying corporate tax (9%), the company's net profit can be distributed as dividends. A flat dividend tax rate of 9% applies.
• Our accountant will prepare all necessary documents for the legal withdrawal of the founder's funds to a personal account, ensuring that all transactions are fully compliant with Montenegrin tax legislation.

3. Accountant and Residence Permit: A Key Role in Legalization

The role of an accountant in Montenegro goes beyond simple financial accounting, becoming a key factor in successfully obtaining and annually renewing a residence permit for opening a company. Without perfect financial order, immigration status is at risk.

3.1. Residence Permit for Opening a Company in Montenegro

For foreigners obtaining a residence permit for opening a company in Montenegro (D.O.O.), an accountant guarantees legality. Not only does the accountant register the company, but they also ensure that all obligations are met:

The accountant ensures the legality of the company's status by timely calculating and paying taxes and social security contributions. Any outstanding debt to the state (Tax Service, Funds) may be grounds for denial of a temporary residence permit extension for the director and all employees.

3.2. Personnel Records

The basis for extending a temporary residence permit is the official employment of the director:

• Calculating the minimum salary for the director: The accountant calculates and formalizes the official salary calculation, which must not be lower than the state-established minimum.
• Calculating social contributions (PIO/Zdravstvo): We ensure the timely and full calculation of social contributions (PIO pension insurance and Zdravstvo health insurance) from each salary. This guarantees not only the right to renew a temporary residence permit but also the right to receive medical care in Montenegro.

3.3. Tax Payment Certificate: The Essential Document for Residence Permit Renewal

The key document required by the Ministry of the Interior (MUP) when renewing a residence permit is an official confirmation of the absence of outstanding taxes:

Tax Payment Certificate (Uvjerenje o izmirenim obavezama): This is the essential document for successfully renewing a residence permit. An accountant requests it from the Tax Administration, confirming that the D.O.O. is in good standing on all taxes and contributions. A company's clean financial history is direct evidence of its active and lawful operations.

3.4. Timekeeping Obligations and Employment Contracts

• We handle timekeeping for the director and employees.
• We ensure that employment contracts are properly executed in accordance with the Labor Law, registered with government agencies, and renewed on time, eliminating any claims from the Labor Inspectorate.

4. How much do accounting services cost in Montenegro?

The cost of accounting services in Montenegro is flexible and depends on the complexity of the business: from €80 to €250+.

4.1. How much does accounting services cost?

• Basic Package (€80–€120): Designed for micro-enterprises (D.O.O.) with no turnover or a minimal number of transactions (i.e., a company opened solely to renew the director's residence permit). Includes the calculation of the director's minimum salary and the filing of mandatory monthly reports. Annual accounting reports are €150 annually.
• Standard Package (€150–€250+): Designed for active companies with a turnover, it includes all core transactions and reporting, as well as a separate annual accounting report for €150.

4.2. Factors Affecting the Cost of Services

The final monthly price is determined based on the specifics of your company's operations:

• VAT (VAT Registration): Registering as a VAT payer complicates accounting, as it requires monthly VAT reporting. This automatically increases the cost of support.
• Number of Transactions: The more banking transactions, invoices, and cash orders an accountant processes, the higher the cost. The price also depends on the volume of imports/exports.
• Number of Employees: Each additional employee requires individual payroll calculations, social security contributions (PIO/Zdravstvo), and separate reporting, which increases the base rate. The cost of accounting services for each employed employee is €80.

4.3. Additional Services

One-time or consulting services are often added to the basic support:

• Audit: Conducting an accounting audit before closing the financial year or changing an accountant to verify the accuracy of the records.
• Tax Residency Consulting: Providing specialized consultations for non-residents on obtaining or maintaining tax residency in Montenegro and avoiding double taxation.
• Company Registration: Turnkey D.O.O. registration services in Montenegro.

5. How to choose a reliable Russian-speaking accountant in Montenegro

When choosing an accountant for your DOO, you should consider three main criteria:

• License and certification: Ensure that the accounting firm or the accountant holds a valid accounting license issued by the competent authorities of Montenegro.
• Experience with foreign DOOs: Experience working with companies established by non-residents is extremely important. This experience includes knowledge of the nuances of residence permits, currency controls, and the specifics of taxation for foreign DOOs.
• Russian language skills: A Russian-speaking accountant facilitates communication and eliminates the risk of misunderstanding complex financial terms and Montenegrin legal requirements

6. Questions to ask before entering into an agreement

To verify the competence and reliability of a potential partner, ask the following questions:

• "What is your liability for reporting errors?" A professional firm should accept financial responsibility for errors that result in fines.
• "How do you keep up with changes in tax legislation?" This demonstrates how quickly the firm adapts to the frequent changes in Montenegro.
• "What is the exact cost of support, including monthly director's fees?" Ask for a clear price list to avoid hidden fees.
• "What experience do you have in preparing residence permit renewal certificates?"

7. Benefits of Working with GoMonte

Instead of hiring a full-time employee or working with a private accountant, outsourcing through a large firm offers more advantages:

• Comprehensive: We provide not only accounting but also legal and HR support.
• Reliability: You are not dependent on the vacation or illness of one specialist, as your D.O.O. is supported by a team.
• Expertise: A firm like GoMonte has experience working with dozens of clients across various industries, enabling it to utilize best practices for tax optimization and avoid common mistakes made by non-residents.

Professional accounting services in Montenegro should be considered a necessary investment by a DOO owner, not just an expense. Given the low corporate tax rate (9%) and strict reporting requirements for renewing a residence permit, the importance of professional support cannot be overstated. A high-quality accountant not only ensures full compliance with Montenegrin law and protects against thousands of rubles in fines, but also, through competent tax optimization, contributes to the growth of your net profit.

Don't risk your residence permit and financial reputation. Provide your new business in Montenegro with a solid legal and financial foundation from day one. Get a consultation on accounting services for your new business in Montenegro from GoMonte experts right now to start operating safely and profitably.

Contact us: +382 67 322 888 Viber/WhatsApp/Telegram

8. Where to find us

Budva office address: Jadranski put bb., 85310

Hours:

• Monday-Friday, 9:00 AM to 6:00 PM
• Saturday, 10:00 AM to 3:00 PM
• Sunday closed

Located on the map: google.com/maps

Read also on this topic:

Company Registration in Montenegro: How to Open a Business in Budva: gomonte.me/blog/post/63