In the first nine months of 2026, Montenegro’s Tax Administration reported a gross revenue collection of €1.37 billion, marking an increase of €121.1 million, or 9.7%, compared to the same period last year. This growth is attributed to stronger collections from value-added tax (VAT), corporate income tax, and payroll-related receipts.
The revenue collections exceeded initial projections by €50.4 million, or approximately 4%, providing the government with additional fiscal flexibility as it prepares the budget for 2027 and plans for an expanded public investment program.
The VAT generated €469.6 million, reflecting an annual increase of 8.1%. Meanwhile, corporate income tax receipts rose by 4% to €232 million, and social security contributions saw a significant increase of 10.2% to €333.1 million.
This data indicates robust nominal economic activity and enhanced tax collection efficiency. Additionally, improved customs receipts contribute to a favorable revenue outlook as the year approaches its final quarter.
The performance of tax revenues is crucial for Montenegro’s public finances, especially as the government considers several potentially expensive initiatives, including wage reforms, increased capital expenditures, and infrastructure investments linked to EU accession efforts.
The surplus in tax collections may alleviate some financial pressures; however, it does not negate the necessity for careful management of ongoing expenditures.
It is important to note that these figures represent gross receipts managed by the Tax Administration and do not encompass all revenue collected through customs and other public entities.
The notable growth in social contributions comes at a time when Montenegro is evaluating further changes to labor taxation under the proposed Euro Model. Any potential reduction in contribution rates aimed at enhancing net wages could impact one of the fastest-growing segments of the current revenue structure.
The results from the past nine months provide the government with a more favorable fiscal position but also underscore the reliance of Montenegro’s budget performance on sustained consumption, employment, and payroll-related revenues.
