Podgorica, (MINA-BUSINESS) – Several initiatives by the Union of Municipalities of Montenegro have resulted in a new decision on the categorization of tourist areas, adopted by the Ministry of Tourism. 

This decision creates the conditions for collecting a tourist tax on secondary housing units in Category A tourist areas.

“The decision eliminates the risk of the announced lawsuits and additional costs for municipalities. It establishes the rule of law and allows for more stable planning and execution of local budgets,” the Union of Municipalities stated in a press release.

According to the Law on Tourism Organizations, tourist areas are classified into categories A, B, C, and D based on their importance tourism and clearly defined criteria.

The categorization is carried out by the Ministry of Tourism every five years.

“The last decision was made in 2017, and its validity has long expired, which called into question the legal basis for collecting the tourist tax in Category A areas,” the Union of Municipalities explained.

The law stipulates that the tourist tax is paid by individuals, both domestic and foreign, who own a holiday apartment or house used as a secondary residence in a Category A tourist area, within a municipality that has an established local tourist board.