The Parliament of Montenegro has adopted the
Law on Incentive Measures for the Development of Research and Innovation,
published in the “Official Gazette of Montenegro”, No. 051/25 of May 27, 2025. This law introduces a comprehensive framework to support innovative projects and scientific research activities, aiming to stimulate technological advancement, entrepreneurship, and the competitiveness of the Montenegrin economy.
The law regulates:
- the conditions for acquiring the status of a beneficiary of incentive measures,
- the types of available measures,
- the rules for granting and revoking such status,
- as well as the obligations of beneficiaries during the support period.
Incentive measures are aimed at strengthening startups, spin-offs, innovative companies, and the development of research and innovation. They also promote the employment of young professionals, the introduction of new technologies, and an increase in exports in knowledge-based and innovation sectors.
Among the defined terms are:
- Innovation: a new or improved product or process,
- Startup: a young company with innovative potential,
- Spin-off: a company originating from a scientific institution to commercialize research,
- Freelancer, inventor, donor, and other relevant actors.
Beneficiaries may include both domestic and foreign legal and natural persons, and the law also defines conditions for donors who financially support innovation and research projects. In return, the law offers tax incentives, including:
- Personal income tax reductions (for example, for freelancers, inventors, and donors),
- Corporate income tax reductions for entities that invest in or donate to innovation activities.
The status of an incentive measure beneficiary will be awarded through an annual public call, with applications reviewed by a special commission. The Ministry of Science and Innovation keeps a registry, monitors the use of funds, and may revoke beneficiary status in cases of misuse or irregularities.
The law also clearly specifies activities that are not eligible for support—such as weapons, gambling, excise goods, and any activities harmful to people or the environment.
With the entry into force of this law, the previous 2020 law is repealed. The new law comes into effect on June 4, 2025.
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