Tax on renting an apartment in Montenegro: what owners must know
Income from seasonal rental, Airbnb and direct bookings — expense deduction methods, tourist tax, and common coastal owner mistakes.
Key takeaways
- Tourist rental income is taxable — platforms do not declare for you.
- Flat % expense deduction or documented costs — not a lump-sum tax.
- Municipal tourist tax and income tax are separate duties.
- Foreign owners should hire a local accountant before the first season.
If you rent in Budva, Kotor or Bar, leaving income tax until after season is risky — bank inflows, guest records and tourism registration can be cross-checked. This guide covers basics for individuals renting to tourists in Montenegro; it does not replace personal tax advice.
Legal rental also requires tourism registration, guest registration and tourist tax — income tax is the third pillar.
1What is taxed
Income from renting property to tourists (apartment, room, villa) is taxable personal income. Payment method — bank, Stripe, cash or OTA — does not change the obligation; total calendar-year revenue matters.
Deposits, cleaning fees and add-ons may fall in the same income bucket — confirm with your accountant. Mixing personal stays and rental without records is a common inspection trigger.
2Expense deduction: flat percentage or documented costs
Personal income tax law lets you reduce taxable income by a flat percentage of allowed expenses or by documented actual costs (repairs, utilities, OTA commission, insurance, furniture depreciation). This is not a lump-sum tax or Serbia’s boravišna taksa flat fee.
The flat percentage suits low-cost setups; documented costs help with a mortgage, agency fees and professional cleaning — undocumented spend is not deductible.
3Filing and deadlines
Report on the annual income tax return via Poreska uprava e-services (ePorezi). Check gov.me for the current deadline — late filing can incur interest.
Keep monthly records: gross revenue, nights, OTA fees, direct payments. Bank statements alone are not enough — map payment → booking → guest. Track in Smarenta CRM.
4Tourist tax and direct bookings
Municipal tourist tax and income tax are separate. Tax uses guest/night data from registration; income tax uses total revenue minus allowed costs.
Direct bookings mean more gross margin and full duty to declare: direct vs Booking.
5Common owner mistakes
Assuming Airbnb files Montenegrin income tax — it does not. Assuming cash is invisible — capacity and bank data can be compared. «Summer only» still taxes months when money was received.
Foreign owners: residency status changes forms and rates. Use a local accountant in your property municipality — do not copy Serbia or Croatia advice.
Common tax questions:
