| Serbia | Montenegro | |
|---|---|---|
| Corporate income tax | 15% flat | 9% up to €100k profit, 12% up to €1.5m, 15% above |
| Dividend tax for a non-resident owner | 20%, lower under a tax treaty | 15%, lower under a tax treaty |
| VAT and registration threshold | 20%, threshold 8 million dinars (about €68k) in 12 months | 21%, threshold €30,000 |
| Currency | Serbian dinar, accounts in EUR and USD common | Euro |
| Company by power of attorney | Yes, about 5 working days after the original arrives | Yes, usually within 2 weeks |
| Residence through own company | Temporary residence up to 3 years | Temporary residence, commonly 1 year and renewable (check with the Ministry of Interior) |
| Permanent residence | After 3 years of continuous temporary residence | After 5 continuous years |
| CRS automatic exchange | Not exchanging, no start date announced | Implementing: reporting rules in force since July 2026 |
| Size of the market | About 6.6 million people, the region's biggest economy | About 620,000 people |
When Montenegro makes more sense
If your company will make modest profits and you want to invoice and live in euros, Montenegro's 9% bracket and the euro are real advantages. It is also a natural choice if you want to live on the coast and your business does not depend on a large local market.
When Serbia makes more sense
- You want permanent residence sooner. Since the 2024 changes to the Law on Foreigners, Serbia gives permanent residence after three years of continuous temporary residence, and each permit can run for up to three years. Fewer renewals, earlier security.
- Your profits will be large. Above €1.5m the rate is 15% in both, and in between Montenegro is 12%, so the difference narrows as you grow.
- You need a real market, staff or suppliers. Belgrade is a city of almost 1.7 million people with a deep IT and services workforce, and Serbia has free trade agreements with the EU, the UK, Turkey, the Eurasian Economic Union and China.
- Banking privacy matters to you. Serbia is not exchanging account data under CRS yet. Montenegro has started implementing it. Serbia still applies FATCA and full bank checks, and you declare income where you are tax resident.
Can I do both?
Yes. Some clients keep a Montenegrin company for the coast and a Serbian one as the base for residence and banking. What matters is where you actually live, because that decides your tax residency.
Sources for the other country: PwC Worldwide Tax Summaries (reviewed August to September 2026), official government sites and law-firm summaries. Rules change, so check the current position with an adviser in that country before you decide. For Serbia we confirm everything in writing for your case. Updated 30 October 2026.