Montenegro: Budva municipality: New incentive for investors

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


Montenegro: Budva municipality: New incentive for investors

zivkovic.jpg

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

more across site & shared bottom lb ros

More from across our site

Advisers won’t be short of work in a world of increased valuation disputes, documentation requirements and behavioural responses from clients seeking to protect their wealth
Jaydeep Menon explains how Frazier & Deeter built a specialist practice which helps UK start-ups expand into the US and why private equity backing is accelerating its ambitions
As joint audits, data sharing and pillar two reshape tax controversy, multinational groups can no longer afford to manage disputes one jurisdiction at a time
Brazil's tax system is being reshaped by VAT , pillar two and TP reform. Fallet explains why those changes convinced him to lead a new practice
The agreement with Daribatech, alongside recent high-profile investment in talent, suggests the firm is gearing up for a significant push in the region
Several factors have led to a steady transition of TP work away from traditional advisers and towards full-service law firms, DLA Piper’s new TP leader says
Julian Balson's departure from EY's Tier 1 tax controversy practice for lower-ranked Fieldfisher represents one of the more eye-catching UK hires of the year
Former IRS commissioner Danny Werfel argues that the biggest obstacle to AI adoption in tax is not technology, but trust, and introduces a practical AI risk framework to help
Howell takes a deep dive into how he led the landmark PepsiCo dispute, discusses the ATO's enforcement priorities, and emphasises KordaMentha's market ambitions
Global tax leader David Linke said that the TaxSim gaming programme could replace aspects of traditional face-to-face learning
Gift this article