The Cost of Living Index in Montenegro is 42.57 (NYC = 100), making it affordable compared to major global cities. Groceries (41.03) and restaurant prices (45.56) are also relatively low.

The Property Price to Income Ratio is 13.02 years, indicating an expensive housing market for buyers. The Rent Index is 15.16, suggesting that rental costs are more affordable than purchasing property.

The Purchasing Power Index is 72.78 (NYC = 100), indicating below-average buying power compared to New York City.

Montenegro has a progressive personal income tax system ranging from 0% to 15%, with a municipal surtax. Corporate income tax is also progressive, from 9% to 15%. The standard VAT rate is 21%, with reduced rates of 7% for essentials and a new 15% rate for certain services effective January 2025. Annual property tax ranges from 0.25% to 1%.

Montenegro's business environment is developing, characterized by a growing startup ecosystem, particularly in urban areas. The country benefits from a favorable tax system and increasing government support for innovation. However, challenges include limited access to venture capital and infrastructure deficits in rural areas, and the startup ecosystem is not yet globally ranked.

Montenegro operates a mixed public and private healthcare system, with public healthcare being tax-funded and accessible to residents and employed expats. The pension system is a two-pillar model, including mandatory and voluntary insurance, with a pensionable age of 66 for men and 64 for women. Social aid programs provide financial support for the unemployed and various child protection benefits.

Deposits in Montenegro are protected up to €50,000 (approx. USD 58,500, based on a 1.17 EUR/USD exchange rate) per depositor per bank by the Deposit Protection Fund of Montenegro (DPFM). The banking sector is stable, liquid, and strongly capitalized, with ongoing efforts to align regulatory and supervisory frameworks with EU standards. Montenegro has also significantly improved its anti-money laundering and counter-terrorist financing framework.