The draft amendments to the Law on Tax Administration are currently under public consultation until the middle of next week. The proposal introduces several new rules affecting the real estate market and short-term rentals. Tourism expert Prof. Ivo Županović told Radio Montenegro that the implementation of the amendments would secure realistic and achievable revenues from online property rentals and sales, while also strengthening cooperation between Montenegro’s tax authorities and those of EU member states. He also suggested that the law should include provisions regulating so-called condo-hotels.
The public consultation, open until 19 November, concerns amendments that require companies operating digital platforms for renting properties, accommodation, transportation and other services to register in Montenegro. They will also be required to keep detailed records of advertisers, fees, taxes, commissions and other payments, according to the draft law.
The aim of these measures is to give tax authorities full insight into financial flows, prevent money laundering, and ensure proper tax collection. According to Županović, these changes will yield tangible results, enabling the state to collect realistically achievable revenues from online real estate rentals and sales.
“This is extremely important, because we see rapid expansion in some areas, yet we do not see adequate tax revenues, neither at the municipal nor at the national level,” Županović said.
Another advantage, he noted, is that tax authorities would gain access to financial reports of companies operating outside Montenegro, which would allow the state to collect taxes based on data visible both domestically and within EU tax systems.
“In this way, it will be possible to have insight into all transactions carried out by a single entity, both inside and outside Montenegro, and determine the tax base accordingly,” he explained.
Županović added that the law should also address condo-hotel projects, where investors are allowed to sell parts of the hotel capacity to private individuals while the entire complex continues to function as a hotel with full service and management.
“Additional regulatory measures for condo-hotels are necessary, because we also see significant discrepancies in this area,” he said.
The draft amendments to the Law on Tax Administration also include provisions related to cryptocurrencies.
