Montenegro is moving to place yacht chartering and other nautical-tourism activities under a more comprehensive regulatory system covering vessel registration, commercial operations, insurance and customer protection.
Under the proposed Tourism and Hospitality Law, companies and entrepreneurs offering nautical-tourism services would have to register with the Central Tourism Register before starting commercial operations. They would also need to demonstrate that the relevant vessel is entered in an appropriate ship, boat or yacht registry, establish a legal right to use infrastructure such as a berth and provide insurance covering customers against accidents.
The proposed framework covers more than conventional boat rental. Nautical tourism would include accommodation and recreation aboard boats, ships and yachts, chartering with or without crew, excursions, as well as food, beverage and other hospitality services provided during voyages or while guests are on board.
The rules distinguish between bareboat rentals and combined tourism services. A vessel supplied without additional services would be treated differently from a crewed holiday incorporating transport, accommodation, catering and excursions, with the latter potentially falling under licensing, insurance and consumer-protection requirements applicable to travel organisers.
Montenegro’s yacht registry has expanded rapidly
The regulatory changes come as the number of vessels registered under the Montenegrin flag has increased significantly. The yacht registry grew from 298 vessels at the end of 2022 to 536 by 12 May 2026, representing an increase of almost 80% in less than three and a half years. The pace of expansion has subsequently slowed. Only eight yachts were added between July 2025 and May 2026, compared with substantially larger increases during the preceding period.
Foreign owners account for most vessels registered under the Montenegrin flag. Owners from Serbia hold 165 yachts, or 30.8% of the total, while Russian individuals and companies own 117, representing 21.8%. Together, Serbian and Russian owners account for 282 yachts, or 52.6% of the registry. Montenegrin owners form the third-largest group. Other registered owners include individuals and companies from Ukraine, the United States, Bosnia and Herzegovina, Israel, Germany, Estonia and Switzerland, along with dozens of other jurisdictions.
EU-based owners account for fewer than 8% of registered yachts. Montenegro’s use of the euro, Adriatic location, relatively straightforward company formation procedures, comparatively moderate operating costs and expanding network of marinas, maintenance contractors and yacht-service businesses have contributed to its attractiveness to international yacht owners. The country’s flag also provides an option for owners from non-EU countries who keep their vessels in the Adriatic but do not necessarily want to register them under an EU flag.
Thousands of foreign vessels operate without changing flag
The Montenegrin yacht registry represents only part of the country’s nautical activity because foreign-flagged recreational vessels can enter without being registered in Montenegro. Official figures show that 4,690 foreign recreational and sports vessels entered Montenegro in 2024. Of these, 4,080 arrived by sea and 612 were transported overland.
Sailing yachts represented 43.2% of the total, motor yachts 39.8%, and other vessels 17%. The vessels carried approximately 22,770 people. The associated economic activity extends beyond marina charges. Visitors spend money on fuel, food, restaurants, local transport and excursions, while larger yachts require agents, maintenance providers, engineers, cleaners, security companies and crew-support services. Superyachts can generate particularly high levels of local expenditure, although the scale of the benefit depends on the duration of their stay and the proportion of supplies and services purchased in Montenegro.
Central register to connect operators, vessels and customers
The proposed Central Tourism Register would provide authorities with a formal record of companies conducting nautical-tourism activities. Applications would be submitted to the competent local authority and would contain the company’s registration information, the location from which services are offered, the type of nautical activity and the address of the operating facility.
Company information would be obtained directly from the Central Register of Business Entities. Operators would nevertheless have to submit evidence of vessel registration, establish their legal right to use a berth or other operational infrastructure and provide proof of customer accident insurance. Commercial operations could begin only after registration in the Central Tourism Register.
Registered providers would be required to keep the registration decision on board, display prices, retain evidence of vessel seaworthiness, identify the company and its operating hours, issue fiscal receipts and maintain business records accessible to the competent authorities. The system would establish a documented connection between the legal entity, vessel, berth, customer and payment.
The reform also addresses situations in which a yacht may be registered abroad, stationed at a Montenegrin marina, commercially managed by one company, booked through another and paid through an account in a separate jurisdiction. The proposed framework would involve information from bodies including the Maritime Safety and Port Management Authority, Tax Administration, Customs Administration, business registry, harbour masters and marina operators. Matching charter advertisements and guest records with registered operators, vessel status, berth contracts, fiscal invoices and vessel entry and departure information would provide authorities with additional information for monitoring commercial activity.
Charter packages face additional requirements
The proposed legislation also addresses the distinction between vessel rental and organised tourism packages. Nautical services could be provided directly on board, through a licensed travel agency or at organised locations approved by a local authority or port operator. During the consultation process, tourism-industry representatives argued that companies selling combined services should be subject to the travel-agency regime.
The concern centred on operators offering multi-day cruises that combine accommodation, food, crew and guided activities without the licence, financial guarantee and insolvency protection required of tour operators.
The government partly accepted this position. Intermediation and sales involving combined tourism services would generally have to be conducted through a licensed travel organiser, while vessel rental without additional services could remain outside the full package-travel framework.
The distinction will affect contractual arrangements between yacht owners, management companies and customers. A transaction described as vessel rental could still fall within package-tourism requirements where the customer is purchasing a crewed itinerary, accommodation, catering and excursions for a single price. Operators would have to differentiate vessel-rental contracts from brokerage, crew employment, accommodation, food services and itinerary management. They would also need to establish which company issues invoices and assumes responsibility in cases involving cancellations, accidents or customer refunds.
Inspections target illegal charter activity
The regulatory changes follow intensified enforcement against illegal yacht rental, commonly referred to as the “black charter” market. Tourism, tax and navigation-safety inspectors began a coordinated campaign on 10 June 2026. They conducted 30 inspections, found irregularities in approximately two-fifths of cases and issued 12 misdemeanour orders.
The penalties totalled almost €23,000. The enforcement work involved several authorities because illegal charter operations can involve different regulatory issues. A vessel may be technically seaworthy while its commercial activity remains undeclared, or a company may be registered without holding the required tourism licence. Foreign vessels admitted into Montenegro temporarily for private use can also raise customs and tax issues if they are subsequently used for commercial chartering. Commercial operation can affect the conditions under which a vessel entered the country and may result in VAT, customs or other liabilities.
Authorities can compare the actual use of vessels with ownership and management documentation. Online booking platforms and social media also provide information through advertised availability, prices and customer reviews. A foreign yacht presented to Customs as a private vessel while being repeatedly marketed for weekly charter can therefore provide evidence of commercial activity through its online presence. The Central Tourism Register would establish a formal reference point for checking such operations.
Major marinas depend on international yacht traffic
Montenegro’s principal nautical destinations include Porto Montenegro in Tivat, Portonovi at Kumbor, Luštica Bay at the entrance to the Bay of Kotor and Marina Bar. Their business activities include berthing, utilities, maintenance, retail, hospitality, property and services for yacht owners, guests and crew.
The proposed regulatory framework distinguishes between foreign vessels using Montenegro and foreign vessels conducting commercial tourism activities in the country. Foreign private yachts would remain able to enter Montenegro, obtain the necessary navigation documentation, rent berths, purchase supplies and remain in the country under applicable customs and immigration rules. Commercial vessels carrying paying passengers would face additional requirements relating to tourism registration, customer protection and taxation.
Yacht operations are subject to several regulatory areas simultaneously, including flag-state legislation, Montenegrin maritime regulations, temporary-import provisions, VAT, excise duties, crew employment and immigration requirements, tourism licensing and marina agreements.
Duty-free yacht fuel policy restored
Montenegro has also reinstated access to fuel without excise duty and VAT for eligible foreign yacht traffic under the applicable international-traffic procedure. The measure had been withdrawn in 2022. The Ministry of Finance estimated that the state had forgone approximately €59 million in excise and VAT revenue between 2018 and July 2022 under the previous arrangement.
Following the withdrawal, part of the refuelling market moved towards Albania and other Adriatic destinations. The fuel concession was later restored, initially subject to a requirement that qualifying foreign vessels remain in Montenegrin waters for at least 72 hours. That minimum-stay requirement was subsequently abolished, allowing eligible vessels to arrive, refuel and depart without spending three days in the country. Large motor yachts can purchase tens or hundreds of thousands of litres of fuel, making the removal of excise and the related VAT effect financially significant compared with EU bunkering locations.
The policy also affects the wider economic impact of yacht calls. Without a minimum stay, the savings generated by tax-free fuel do not necessarily translate into spending on marinas, restaurants and other local services. Integrated marina operations can retain more of this traffic by combining bunkering with maintenance, crew changes, provisioning and accommodation or tourism services.
Berth requirements strengthen the role of marinas
The proposed obligation to demonstrate a legal right to use a berth would give marina infrastructure a more formal role in commercial charter operations.
Operators would need a documented marina or berth arrangement as part of the evidence supporting registration. This could increase the importance of commercially suitable berths and operating bases in Tivat, Kotor, Herceg Novi and Bar. Marinas providing documentation, guest reception, waste management, electricity, water, security and fiscalised services would be better positioned within the regulated charter system.
The requirements could also affect smaller ports and seasonal berthing facilities, which may need additional investment in administration, safety, environmental controls and customer facilities. Environmental requirements are also relevant as yacht traffic expands. Wastewater, bilge water, waste oil, solid waste, fuel handling and shore-power use require controlled systems. The enclosed geography of Boka Bay increases the importance of local pollution controls, while additional vessel movements add pressure to coastal infrastructure.
Future nautical investment therefore includes infrastructure such as pump-out facilities, waste reception systems, fire protection, digital vessel tracking, shore power and yacht maintenance facilities alongside berths. The proposed regulatory system would place yacht charter and other nautical-tourism services within a more structured framework linking tourism registration, maritime requirements, taxation, insurance and customer protection.
