Montenegro: Budva municipality: New incentive for investors

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Montenegro: Budva municipality: New incentive for investors

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Jelena Zivkovic

Budva Municipality, the pearl of Montenegrin tourism, is addopting new incentives for domestic as well as foreign investors for the construction of new hotels and for owners of private accomodations. A year ago, the Budva municipality government adopted an incentive acoording to which investors that are investing in construction of four and five stars hotels are liable to pay €30 ($41) per square metre for local communal fees that is already 10 times less than the fees in previous periods. Now, the municipality intends to reduce the fees to zero.

Budva municipality is the first municipality in Montenegro that has taken action in line with recommendations given by the Montenegrin government. The recommendation relates to granting of incentives to all investors that are interested in constructing new hotels with a minimum of four stars in the exclusive zone and in a first zone.

It is important to empasise that this incentive is not applicable to condo and aparthotels – communal fees are €320 per metre square for condo hotels and €256 per metre square for aparthotels.

The same incentive includes the owners of private accomodations too as they will not be liable to pay local communal fees in case of developing new private accomodation.

Jelena Zivkovic (jelena.zivkovic@eurofast.eu)

Eurofast Global, Podgorica Office

Tel: +382 20 228 490

Website: www.eurofast.eu

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