Airbnb in Montenegro After the New 2025 EU Regulations – How to Prepare for the Changes by 2026?

Airbnb and other platforms, such as Booking, in Montenegro are facing new regulatory challenges in 2025. EU Regulation 2024/1028 and local legal changes in Montenegro introduce new obligations that directly affect the profitability and legality of short-term rentals. Are Airbnb investments in Montenegro still profitable after the regulatory changes?

New EU Regulation 2024/1028 – Key Changes for Airbnb Property Owners

New Short-Term Rental Regulations (Airbnb, Booking) in Montenegro 2025

As of May 20, 2026, EU Regulation 2024/1028 concerning the collection and sharing of data on short-term rental services for platforms such as Airbnb and Booking will come into effect. Although Montenegro is not yet an EU member, its accession process means that the country is preparing to implement similar standards.

Key obligations introduced by the new regulations:

• Mandatory registration of all properties used for short-term rentals
• Unique registration numbers required on all platforms (Airbnb, Booking.com)
• Control mechanisms for national and local authorities
• Platform obligations to verify the legality of listings
• Information-sharing framework between EU countries

Current Airbnb Regulations in Montenegro – Status as of October 2025

Mandatory Licensing and Registration

Since August 2025, Montenegro’s new Law on the Legalization of Illegal Buildings has been in force, significantly affecting the short-term rental market:

• Every Airbnb property must have a tourist license issued by the Ministry of Tourism
• Registration with the local Tourist Organization is mandatory
• Technical compliance declaration and guest insurance are required
• Temporary rental permits are available for owners whose properties are undergoing legalization (for up to 3 years)

New VAT Rates – A Revolution in Taxation

As of January 1, 2025, a new 15% VAT rate was introduced for all forms of short-term rentals:

• 15% VAT on the rental of hotel rooms, guesthouses, and Airbnb properties
• VAT registration threshold: €30,000 in annual revenue
• Possibility of voluntary VAT registration to deduct input VAT
• Rentals exceeding 60 days are exempt from VAT

Income Tax and Allowances

2025 tax system for short-term rentals:

• 15% income tax after an automatic 30% deduction of expenses
• Effective tax rate: 10.5% (15% applied to 70% of gross revenue)
• Annual property tax: 0.25–1% of the cadastral value
• Tourist tax: approximately €1 per person per night (paid by guests)

Administrative Obligations – What Does an Airbnb or Other Platform Owner Have to Do?

Guest Registration in the eTourist System

Every guest must be registered within 24 hours of arrival in the official government system:

• Full personal details (first name, last name, passport number)
• Dates of stay and planned departure date
• Automatic confirmation numbers for each registration
• Fines for failure to register: €150–2,000 for each unregistered person

(*Rates may vary depending on the municipality)

Safety Requirements and Standards

New mandatory standards from 2025:

• Fire extinguishers and smoke detectors in every property
• First-aid kit available to guests
• Owner’s liability insurance
• 24/7 contact number for the owner/property manager

Do you have questions about the new Airbnb regulations in Montenegro? Click here and get in touch with us!

Best Locations for Airbnb in Montenegro 2025

Profitability analysis by city (data from September 2025):

Budva remains the leader with 2,597 active Airbnb listings and the highest profitability despite increasing regulatory requirements.

Consequences of Non-Compliance with the New Regulations

Owners renting through Airbnb or Booking must remember the obligation to register guests.

Polish owners may be exposed to:

• Fines of €150–2,000 for each unregistered guest
• Removal of the listing from Airbnb and Booking.com
• Ban on tourist rentals in cases of serious violations
• Additional taxes and interest for illegal activities
• Enforcement proceedings in the event of outstanding tax liabilities

Practical Tips for Polish Investors

5 Steps to a Legal Airbnb / Booking Property in Montenegro:

1. Check the legal status of the property

• Verify compliance with zoning and spatial planning regulations
• Make sure the building is legally registered and that tourist rentals are permitted

2. Obtain the necessary licenses

• Tourist license from the Ministry of Tourism
• Registration with the local Tourist Organization
• Property category certificate

3. Set up your tax systems

• VAT registration (if revenue exceeds €30,000)
• Account in the eTourist guest registration system
• Regular tax filings with the tax authorities

4. Secure the property

• Liability insurance
• Safety equipment
• 24/7 contact availability

5. Monitor regulatory changes

• Follow local municipal regulations
• Update procedures in line with new EU requirements
• Seek professional legal advice

Planning an investment in Airbnb in Montenegro? Our Your Adriatic Home team will ensure full compliance with new EU regulations and local laws. We will find the best property and handle all the formalities! CLICK HERE to see available listings. Contact us to find a property perfectly suited to your needs.

Airbnb and Booking Market Forecast for Montenegro 2025–2026

Positive Factors:

• According to current forecasts, possible EU membership for Montenegro by 2028 would increase international guest confidence.
• Regulatory stabilization after the period of adapting to the new regulations
• Growing tourism market with a record 2.8 million tourists in 2024
• Competitive operating costs compared with other countries in the region

Comparison with Other Balkan and Mediterranean Markets

Regulatory trends concerning short-term rentals are not unique to Montenegro. Similar changes have already been introduced in Croatia, where a central tourist rental register has been in place since 2024, while fines for illegal rentals are among the highest in the region. Greece, meanwhile, has tightened tax controls by introducing additional reporting obligations for Airbnb property owners. In Spain, particularly in Barcelona and the Balearic Islands, the number of new licenses has been restricted in order to protect the local housing market.

Against this background, Montenegro remains a relatively liberal market, with clear legalization procedures and moderate taxation levels. For Polish investors, this still makes Montenegro an attractive alternative to overheated Western European markets, offering higher return potential and less regulatory competition. However, as EU accession negotiations progress, regulations are expected to gradually converge with EU standards, which could limit some of Montenegro’s advantages in the long term.

Challenges:

• Higher compliance costs of approximately €500–1,000 per year per property
• Greater competition among legally operating properties
• Local restrictions in the centers of tourist destinations
• Risk of further changes related to the EU accession process

Expert forecast: Airbnb profitability in Montenegro is expected to remain at 6–10% annually for well-managed properties in top locations, despite increasing regulatory requirements.

Conclusion: Is Airbnb in Montenegro Still Profitable?

New EU regulations and local Montenegrin laws introduce higher standards of legality and safety for short-term rentals, but they do not eliminate the investment appeal of the market. Polish investors who adapt to the new requirements can still achieve solid annual returns of 6–10%.

Key Changes in 2025:

• Mandatory registration and licensing of properties
• 15% VAT for revenues exceeding €30,000 per year
• Automatic guest registration within 24 hours
• Higher safety and insurance standards
• Preparations for EU regulations ahead of accession

Success with Airbnb and Booking in Montenegro in 2025 requires a professional approach to compliance, but it can reward investors with stable returns in one of the most beautiful countries on the Adriatic.

Is It Worth Investing in Montenegro?

The answer is: definitely yes, but with certain reservations:

✅ Advantages:

• Low tax rates compared with the EU
• Transparent tax system
• No capital gains tax on the sale of real estate
• Competitive taxation of rental income

⚠️ Challenges:

• The need to understand local tax law
• Differences in taxation between new and used properties
• The need for professional tax advice
• Monitoring regulatory changes

Why Is Professional Assistance Worth Considering?

Montenegro’s tax system, although relatively straightforward, has certain specific features that can be a pitfall for unprepared investors. Professional advice can:

• Save thousands of euros through proper transaction structuring
• Help avoid costly tax reporting mistakes
• Optimize the tax burden over the long term
• Ensure compliance with local laws

Contact and Free Consultation

Are you planning to purchase property in Montenegro and want to make sure that all tax aspects are handled correctly?

Our team of experts at Your Adriatic Home, with many years of experience in the local real estate market, can help you:

✅ Calculate the exact tax costs of your investment
✅ Choose the optimal ownership structure
✅ Prepare all documents in accordance with local regulations
✅ Conduct a safe transaction from A to Z

Contact us today to schedule a free consultation and find out how to maximize the benefits of your investment in Montenegro!

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Remember: This article is for informational purposes only. Every situation requires an individual approach. We encourage you to have a personal consultation with our experts, who can prepare a personalized investment strategy for you.