Guide to Opening a Restaurant or Café in Montenegro

Summary: Opening a restaurant/café in Montenegro requires the right company structure, a suitable location and completing the necessary permits (business premises, food/hygiene, and alcohol if applicable). The tourist season is a strong opportunity, but seasonality and operating costs must be well planned.

Contents

1. Company and structure
2. Location
3. Permits
4. Staff and social security
5. Tax and accounting
6. Seasonality and cost
7. FAQ

1. Company and structure

First a suitable company (usually a DOO) is formed. The business activity (food & beverage) must be defined correctly. If you also plan residence via a company, mind the annual tax/social-security base (the €5,000 requirement at renewal).

2. Location

The coast (Budva, Tivat, Kotor) offers high-season traffic but rent and competition are high; Podgorica provides a more stable year-round local base. The lease and the premises’ use permit should be checked from the start.

3. Permits

A food & beverage business typically involves business opening/use, food safety/hygiene and, if applicable, alcohol-sale permits. Permits vary by municipality and activity; we run the process with local experts and our partner lawyers.

4. Staff and social security

For hiring staff, employment contracts, payroll and social security (SGK) filings must be done regularly. Rules for seasonal employment are assessed separately.

5. Tax and accounting

Progressive corporate tax (from 9%), VAT (generally 21%; a reduced rate may apply in areas such as tourism/food & beverage) and regular accounting are required. VAT status depends on the €30,000 turnover threshold.

6. Seasonality and cost

On the coast, income largely depends on the season; plan annual cash flow to cover the off-season too. Model rent, staff and supply costs realistically.