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

The US president’s threats expose how one superpower can subjugate other countries using tariffs as an economic weapon
The US president has softened his stance on tariffs over Greenland; in other news, a partner from Osborne Clarke has won a High Court appeal against the Solicitors Regulation Authority
Emmanuel Manda tells ITR about early morning boxing, working on Zambia’s only refinery, and what makes tax cool
Hany Elnaggar examines how AI is reshaping tax administration across the Gulf Cooperation Council, transforming the taxpayer experience from periodic reporting to continuous compliance
The APA resolution signals opportunities for multinationals and will pacify investor concerns, local experts told ITR
Businesses that adopt a proactive strategy and work closely with their advisers will be in the greatest position to transform HMRC’s relief scheme into real support for growth
The ATO and other authorities have been clamping down on companies that have failed to pay their tax
The flagship 2025 tax legislation has sprawling implications for multinationals, including changes to GILTI and foreign-derived intangible income. Barry Herzog of HSF Kramer assesses the impact
Hani Ashkar, after more than 12 years leading PwC in the region, is set to be replaced by Laura Hinton
With the three-year anniversary of the PwC tax scandal approaching, it’s time to take stock of how tax agent regulation looks today
Gift this article