Iceland vs Montenegro
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐ฎ๐ธ Iceland โ Municipal Income Tax
Iceland's 69 municipalities set their own local income tax rates, ranging from ~12.44% to ~14.52%, averaging ~14.45%. This is added to the national income tax. The combined effective rate for most earners is about 36.94% (national + municipal). Iceland has no inheritance tax on direct heirs. Real estate transfer tax (stimpilgjald) is 0.8% on property transfers. Iceland is not an EU member but belongs to the EEA, affecting VAT and trade rules.
๐ฒ๐ช Montenegro โ Municipal Taxes
Montenegro's 24 municipalities (opลกtine) levy property tax (0.25%โ1% of market value), accommodation tax (turistiฤka taksa), and business activity fees. Podgorica and coastal tourist municipalities (Budva, Kotor, Bar) have higher rates. The Tax Administration of Montenegro administers national taxes. Montenegro uses the euro as official currency without being an EU member. EU accession negotiations are advanced (since 2012). Significant foreign real estate investment from Russia, UK, and Middle East buyers. MFEZ (Montenegro Free Economic Zone) in Bar offers incentives.
Iceland vs Montenegro: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ธ Iceland has a higher top income tax rate (~36.94% vs 9โ15%). ๐ฒ๐ช Montenegro is more favourable for high earners.
๐ VAT/Sales Tax: Iceland has a higher consumption tax (11โ24% vs 7โ21%).
๐ข Corporate Tax: ๐ฒ๐ช Montenegro offers a lower corporate rate (15% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ฒ๐ช Montenegro taxes investment gains at a lower rate (15% vs 22%), benefiting investors.