Short-Term Rental in Montenegro: Rules, Licences, Taxes
2 October 2026 · The Invest-Me team — owners of a working rental business in Žabljak
To rent a house legally on a nightly basis in Montenegro you need four things: registered activity, a categorised property, guest reporting and the tourist tax. After that come income tax and the choice of form, individual or company (DOO). None of it is hard, but every step is tied to the municipality, and a slip on any of them costs a fine or a delisting.
We run four houses in Žabljak with a 9.2 Booking rating, and this is an owner's memo, not legal advice. The rules below come from public sources as of October 2026 and they change, so confirm with the municipal tourist organisation and an accountant before acting.
What registration does a short-term rental need?
Two steps: register the activity and have the property categorised. The property goes into the tourism register and receives a category (stars). Listing on Booking or Airbnb without it is a bad idea, because platforms and inspectors increasingly cross-check listings against the register.
For small properties the law on tourism and hospitality has a simplified route: hospitality "in a home" for individuals, with caps on rooms, apartments and beds. Public sources disagree on the exact caps, so we don't quote a number; ask your municipality for the current limit. Above the cap you need a company.
As a rule of thumb for timing, guides cite two to three weeks from filing with the municipality. The real time depends on the municipality and how busy it is, so leave a buffer before the season.
How and when do you register guests?
Each guest is reported to the municipal tourist organisation, within a day of arrival (some sources quote a shorter window). Electronic filing needs a digital certificate issued by Pošta Crne Gore, which public sources put at around €30 for three years.
The thing newcomers mix up: paying the tourist tax does not replace guest registration. They are two separate duties, and each can draw its own fine. The practical way is to register on arrival day and collect passport details in advance rather than at the door.
How much is the tourist tax?
The guest pays; the host collects and remits. According to public 2026 sources the coastal rate is €1 per adult per night, children under 12 are exempt and teenagers 12–18 pay half. Guests staying more than 30 days are exempt, as are the owner and close family.
For small hosts the tax is often calculated differently: a flat annual amount by registered capacity rather than by actual nights. We could not confirm the Žabljak rate or method from public sources, so get the exact figure from the municipality.
| What | How it works | Where to confirm |
|---|---|---|
| Rate (coast, 2026) | €1 per adult per night | Municipality |
| Children under 12 | Exempt | Tourist tax law |
| Ages 12–18 | 50% of the rate | Tourist tax law |
| Stays over 30 days | Exempt | Tourist organisation |
| Small host | Flat annual amount possible | Municipality |
Individual or DOO: which is better?
For one or two units an individual is simpler: less paperwork and cost. For several houses you usually need a company (DOO), because the individual form has caps on rooms and beds and, as turnover grows, VAT registration kicks in. Public guides put the VAT threshold at €30,000 of annual turnover, with a reduced rate for accommodation.
Income tax also depends on the form, and we deliberately give no numbers: the calculation differs between an individual and a DOO, and the general formulas online disagree. That is a question for an accountant who knows your municipality. For how to build an honest net figure from gross income, see our piece on what a Žabljak rental house earns: the Booking commission of about 15%, costs and taxes come off before "yield" is a fair word.
What should you check when buying a running rental?
Check the right to operate in the building, not just the building. We cover the wider checklist in our article on buying a turnkey rental business; here is only what relates to rental rules.
What we would ask the seller for:
- proof of registration and the property's category, and who is the registered operator;
- tourist-tax receipts and guest-registration records from past seasons;
- legalization status of the buildings: under the 14.08.2025 legalization law, activity can't be run in a building without a legalization decision, rentals included;
- what actually transfers with the houses: the account, brand and guest base are papered separately, as we explain in our piece on asset deal vs share deal.
Legalization rules keep moving, and checking the status of a specific house is a job for a Montenegrin lawyer.
Can you run a rental without living in Montenegro?
Yes, but registration and guest reporting stay with the owner and can't be paused while you are away. The answer is a local manager who registers guests and pays the tax. The model that works for us is in managing a rental remotely.
To see how these rules turn into real numbers for four houses rated 9.2, open the Family House Pleme page: there is a calculator, and we share the Booking export on request.