Montenegro

In Montenegro, cryptocurrencies are treated as assets or property under general tax laws. While crypto activity is legal, there is currently no dedicated regulatory framework. Instead, existing personal and corporate income tax laws, along with Anti-Money Laundering legislation, apply to digital assets. The Tax Administration of Montenegro is responsible for the administration and collection of taxes on cryptocurrency activities. Taxation falls under the general legal frameworks of the Law on Personal Income Tax and the Law on Corporate Profit Tax. Gains from crypto activities are generally subject to Montenegro's progressive personal or corporate income tax rates, which range from 9% to 15%. For individuals, capital gains from selling or trading crypto are taxed at these progressive rates. There is no distinction between short-term and long-term gains, meaning holding crypto for a longer period does not result in a reduced tax rate or exemption. Similarly, businesses engaging in crypto activities face corporate income tax at progressive rates from 9% to 15%. Notably, transferring cryptocurrencies is exempt from VAT, but using crypto to purchase goods or services is subject to the standard 21% VAT rate. Converting crypto back to fiat currency is a taxable event, with capital gains taxed at 9-15%. Specific crypto activities are also subject to these tax rules. Staking rewards are taxed as ordinary income at progressive personal income tax rates (9-15%) upon receipt. Crypto mining is treated as a business activity, with income taxed at either corporate (9-15%) or personal income tax rates (9-15%), and relevant expenses like equipment and electricity are deductible. Decentralized Finance (DeFi) activities, such as yield farming or providing liquidity, are taxed under general income or capital gains rules at 9-15%, with each realization event typically considered taxable. Non-fungible tokens (NFTs) are subject to general capital gains rules, with gains taxed at 9-15%. Additionally, swapping one cryptocurrency for another (crypto-to-crypto exchanges) is considered a taxable event, triggering capital gains tax at 9-15%. Montenegro has pledged to introduce specific crypto legislation and amendments to the Tax Administration Law to facilitate digital asset information exchange. These reforms aim to align the country with international standards and potential EU regulations like MiCA.