30. 01. 2025.
In the last few years, the number of freelancers in Montenegro has been growing, and with this come new legal changes that are important to understand. If you're a freelancer or planning to become one, here's what you need to know about the new rules in 2025.
WHAT IS A FREELANCER?
A freelancer is a domestic or foreign individual who independently performs innovative activities, providing intellectual services via the internet for the needs of domestic and foreign legal and physical entities. Freelancers work as independent contractors, meaning they are not employed by a single company but work on various projects or contracts for different clients. The main advantages of this work model are a flexible schedule and the ability to choose projects. Common fields include marketing, writing, design, programming, photography, translation, and many others.
FREELANCER INCOME AND EXPENSES
As a freelancer, it's important to understand how income and expenses work. Income earned via the internet is considered income from internet-based activities, while expenses are recognized at a rate of 15% of the gross income.
INCOME TAXATION
Freelancers pay income tax at a rate of 15% on the gross income base.
TAX OBLIGATIONS OF FREELANCERS
Freelancers are required to submit their tax return by April 30th of the current year for the previous year. Taxes must also be paid by the same deadline.
INCENTIVE MEASURES FOR FREELANCERS
In 2025, freelancers can take advantage of incentive measures that include reductions in taxes and contributions for social security.
According to the new rules, freelancers can receive up to an 80% reduction in taxes, including income tax, surtax, and social security contributions.
HOW TO CLAIM INCENTIVE MEASURES?
To claim these incentive measures, freelancers must be registered in the Register of Innovative Activities. Additionally, they must perform innovative activities that involve providing intellectual services for domestic or foreign legal and physical entities in the fields of research, development, and innovation.
Becoming a freelancer in Montenegro brings many advantages, but it also requires knowledge of tax obligations.
Our agency is specialized in preparing tax returns, calculating taxes and preparing applications for the Register of Innovative Activities. Contact us for more information.
