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Montenegro’s Non-Governmental Organizations: A Guide to Associations, Foundations, and Foreign NGOs

Associations and Foundations

In Montenegro, associations and foundations are two types of non-governmental organizations (NGOs) that operate under the country’s laws. Associations are groups of individuals or entities with a common purpose, while foundations are legal entities established for the purpose of promoting public interest.

Key Features of Associations

  • Can be established by foreigners, regardless of their residence status
  • Must have at least one founder with a residence or place of business in Montenegro
  • Do not require registration to operate, but must notify the competent authority of their establishment

Key Features of Foundations

  • Can be established by foreign natural and legal persons, regardless of their residence status
  • Must establish a governing body and have a permanent seat in Montenegro
  • Are subject to tax exemptions on income from grants, donations, membership dues, and similar forms of income not related to economic activities

Foreign NGOs

Montenegro’s laws do not impose any limitations on the establishment of foreign NGOs. Foreigners can establish associations or foundations in Montenegro without requiring registration.

Tax Laws

  • Associations and foundations are exempt from income tax on grants, donations, membership dues, and similar forms of income not related to economic activities
  • Corporations and individuals may deduct up to 3.5 percent of their gross income for charitable contributions to “medical, educational, scientific, religious, cultural, sport, humanitarian and environmental purposes”
  • A VAT system is in place, with a standard rate of 21%

Political Activities

Montenegro’s NGO law does not address the extent to which NGOs may engage in political activities.

Discrimination

The Montenegrin Constitution prohibits discrimination on any grounds, while the Anti-Discrimination Law forbids any type of discrimination against any person on any basis.

Control of Organization

Associations and foundations are subject to control by the competent authorities, including the Ministry of Justice and the Tax Administration.

Knowledgeable Contacts

For more information on Montenegro’s NGOs, please contact:

at The Network for Affirmation of NGO Sector – MANS.