Several initiatives submitted by the Union of Municipalities of Montenegro to the Ministry of Tourism have resulted in the adoption of a new Decision on the Classification of Tourist Destinations into Categories, thereby creating the conditions for the collection of tourist tax on secondary residential units in Category A tourist destinations.
The Decision eliminates the risk of the previously announced legal disputes and the additional costs they could have imposed on municipalities. It also reinforces the rule of law and enables more stable planning and implementation of local budgets.
Under the Law on Tourist Organizations, tourist destinations are classified into categories A, B, C, and D, depending on their importance for tourism and based on clearly defined criteria. The classification is carried out by the Ministry of Tourism every five years. The previous Decision was adopted in 2017, and its validity had long expired, raising concerns about the legal basis for collecting tourist tax in Category A destinations.
The Law clearly stipulates that tourist tax is payable by domestic and foreign individuals who own an apartment, flat, or holiday house used as a secondary residential unit in a Category A tourist destination within the territory of a municipality where a local tourism organization has been established.
The Union of Municipalities of Montenegro expresses its appreciation to the Ministry of Tourism for recognizing the importance of this initiative and for its timely response, which contributes to better regulation of the tourism sector and the protection of local government interests.
