Montenegro well placed as a regional IT entrepreneurial hub

Has Montenegro the potential for becoming an IT hub for the region?

Nowadays, possibly due to the proliferation of the digital nomad lifestyle, Montenegro’s newly-established location-independent IT companies are thriving whilst locally set-up organisations are struggling to keep up. Business development in the sector is ramping up day by day, with tax legislation and regulations adapting more slowly and missing out on opportunities. Estonia is a good example of the change in modes of operation, and further development is spreading across Europe.

The tiny state of Montenegro is in a good position to capitalise on this 21st century innovation explosion, with research amongst IT-savvy expats already in and settled revealing most new arrivals think they’ve landed in paradise! It’s not only the beauty and liveability of the region, it’s also that start-ups can get going in literally a few days and are welcomed by the authorities. Tax policies favour IT businesses, giving benefits such as zero per cent VAT on overseas transactions, corporate and personal income tax rates of nine per cent and easy residency permits.

Montenegro’s cost of living is refreshingly low, but a few details need to be improved in order to complete the picture of a perfect destination for innovative tech startups. At present, payment processing systems need improvement along with full integration of PayPal services, and the number of accounting and tax advisors needs to increase. Importantly, there’s a lack of co-working spaces and the IT culture has yet to be fully established but, once this happens, Montenegro has everything necessary to become the next IT hub attracting a high number of expat IT professionals and entrepreneurs.