If you are a freelancer living and working from Montenegro, you have probably already heard about the changes to the tax system that await us from 2025. The amended law brings rules that change the game — but with the right strategy, you can not only be compliant but also more successful than ever.
This is not just an opportunity to become part of the formal economy — but also to take your business to the next level.
Basic concepts you need to know
- Income tax: the mandatory amount you pay to the state based on income. From 2025, a progressive scale is introduced: 0%, 9%, 15%.
- Contributions: mandatory deductions for pension and disability insurance (PIO) and unemployment insurance.
- Tax base: total income reduced by recognised expenses.
- Actual expenses: business expenditures (equipment, software, business travel) that reduce the tax base.
- Personal liability: if you operate as a natural person — you are liable with all your assets. With an LLC (DOO), your liability is limited to the company’s assets only.
What if you don’t report income?
Failure to report income in 2025 can cost you:
- 80% tax on the unreported amount
- Fines from EUR 200 to 1,000 — plus default interest
Important: if you report income by the end of January 2025, tax is calculated without default interest. This is an opportunity to ensure transparency and control over your business at minimal cost.
Questions you should ask yourself
For freelancers working through platforms such as Payoneer, Deel, Upwork, Fiverr — the new law raises three key questions:
- How to report income without complications?
- Which business model is most favourable for you?
- How to leverage tax optimisation and protect your assets?
Whether you are a designer, programmer, consultant or content creator — choosing the right model can save you money, time and energy.
Flat-rate taxation — simple but limited
If your annual income is below EUR 30,000 and you want simplicity — flat-rate taxation can be a solid option.
Limitations:
- Once you exceed the EUR 30,000 threshold, costs and administration become more complicated
- Freelancers are subject to the obligation to submit the PPFL form — our price: EUR 100 + VAT
LLC (DOO) — the option for the ambitious
If you are thinking of expanding your business, employing others or presenting yourself more professionally on the market — setting up an LLC (DOO) is the best choice.
Advantages of LLC
- Personal asset protection — you are not personally liable for the company’s obligations; the company is liable with its own assets
- VAT refund — business expenses become an investment
- Access to grants and funds — only companies can apply for national and international projects, innovation grants and support programmes
- Professionalism and credibility — larger clients prefer to work with legal entities
- Business expansion — hiring staff, scaling revenue, cooperation with large clients, transition from active to passive income
An LLC is not just a way of doing business — it is an opportunity to position yourself as a serious market player and make the most of all the possibilities the law offers.
Conclusion — stay a step ahead
Changes in legislation bring challenges, but they are also an opportunity for growth. By reporting income on time, choosing the right model and with transparency:
- You avoid penalties
- You lay the foundations for stability and success
It is time to take control and seize the opportunities 2025 brings.
Contact Finance Plus today to ensure an optimal business model in accordance with the law. With us, 2025 can be the year of your business growth and security.
