New Incentive for Investors – Hotel Developers are Free of Communal Fees

Montenegro/March 2014

Budva Municipality, the pearl of Montenegrin tourism, is adopting new incentives for domestic as well as foreign investors for construction of new hotels and for owners of private accommodations.

Year ago, Budva municipality government has adopted an incentive according to which investors that are investing in construction of the four and five stars hotels are liable to pay EUR30 per m2 for local communal fees that is already ten times less than the fees in previous periods. Now, municipality has intention to reduce the fees to zero.

Budva municipality is the first municipality in Montenegro that take action in line with recommendations  given by the Montenegrin government. The recommendation relates to granting of incentives to all investors that are interested in constructing of new hotels with minimum of four stars in the exclusive zone and in a first zone.

It is important to emphasise that this incentive is not applicable to condo and aparthotels – communal fees are EUR320/m2 for condo hotel and EUR256/m2 for aparthotel.

The same incentive includes the owners of private accommodations too as they will not be liable to pay local communal fees in case of developing new private accommodation.

Jelena Zivkovic
Eurofast Global, Podgorica Office
Tel.+382 20 228 490