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Montenegro: VAT treatment in case of office premises purchase


Jelena Zivkovic

The previous few years in Montenegro were years of intensive real estate market development. In line with the strong development of Montenegro as a tourism and business destination, numerous real estate projects were undertaken. Such development brought a large number of international businesses to Montenegro, and those companies are today in a position to acquire office premises. Thus, the VAT treatment of purchase of office premises issue has become an extremely interesting issue.

In a situation when an immovable property is the subject of purchase and is a newly constructed property, which the ownership is transferred for the first time, VAT should be charged and presented on the invoices.

In general, the Montenegrin Law on VAT defines that a taxpayer is able to include in its monthly VAT calculation all VAT related expenses on local purchase of goods and services as well as import of goods and services.

In line with this, in cases of acquisition of office premises that will be used for business activity of the company, related VAT expenses should be included in monthly VAT calculation and these will not be considered as company expense but will have the treatment of rechargeable VAT.

Jelena Zivkovic (

Eurofast Global, Podgorica Office, Montenegro

Tel: +382 20 228 490


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