In the first eight months of 2026, Montenegro’s tax administration reported nearly €1.2 billion in gross revenue, marking an increase of approximately €98 million compared to the same period in 2025. The collection of value-added tax (VAT) approached €380 million, reflecting a year-on-year rise of about €19 million.
This uptick in revenue coincides with the government’s shift towards enhanced digital controls over private accommodations, which includes plans for direct data sharing with major online platforms such as Booking and Airbnb. This approach aims to address the substantial gap between registered tourism activities and the broader market operating through these platforms.
Private rentals, including apartments and houses along Montenegro’s Adriatic coast, are significant contributors to the country’s accommodation sector. However, many of these rentals often evade full tax reporting, leading to discrepancies in tourism statistics. The Tax Administration is now developing mechanisms to align platform data with taxpayer registrations and reported incomes.
The anticipated automatic data exchange with booking platforms is expected to commence by the next tourism season. This would provide tax authorities with essential information regarding hosts, accommodation listings, booking activities, and pricing, thereby facilitating the identification of undeclared income from accommodations.
Currently, tax authorities rely on physical inspections and taxpayer declarations to monitor compliance. Access to digital platform data would enhance their enforcement capabilities significantly. For legitimate operators, this change could diminish the competitive edge held by those who operate outside formal regulations.
The implications of this move extend beyond hotels and professional tourism companies; thousands of small property owners may also be affected as unregistered rental activities become easier to trace without physical inspections. Montenegro has long sought to mitigate its grey economy, particularly in sectors like tourism and hospitality that are prone to informal transactions.
The rise of online booking has made traditional enforcement methods less effective. Properties marketed internationally can generate substantial revenues while providing minimal information within the domestic tax framework. The proposed automatic data exchange aims to narrow this gap.
Additionally, the Tax Administration is advancing a broader digitalization initiative that includes electronic invoicing, electronic dispatch notes, and new digital registers. This modernization effort is partially funded by a World Bank loan, which underscores its significance for enhancing overall tax compliance.
The ongoing shift toward electronic records will enable more efficient comparisons of sales, purchases, inventory movements, taxpayer declarations, and banking information. This transition is expected to facilitate continuous data analysis rather than relying solely on periodic inspections.
Businesses will need to ensure that their digital records are consistent across various systems as compliance becomes increasingly dependent on integrated accounting and ERP solutions. Although this may incur costs—especially for smaller companies—it could also streamline administrative tasks through automation.
The private accommodation sector faces unique challenges as many landlords operate on a small scale without formal accounting practices. If platform data becomes accessible to the Tax Administration, it will likely complicate efforts to avoid registration and reporting obligations.
This could lead to an increase in tax revenues from tourism without necessitating higher statutory rates while potentially improving the accuracy of tourism statistics. Official figures often underreport activity from unregistered private accommodations; platform reporting could rectify this issue by providing a clearer picture of the tourism economy’s actual size.
Furthermore, Montenegro is gearing up for significant wage and tax reforms set for 2027 while addressing large infrastructure demands linked to EU accession efforts. Strengthening tax collection is crucial in this context as closing compliance gaps can offer additional fiscal space without solely relying on increased tax rates.
The positive revenue trends observed in 2026 indicate a stronger financial foundation, with gross collections nearing €1.2 billion, representing an approximate 9% increase compared to the previous year. VAT remains a vital component of Montenegro’s tax revenue due to its ties to consumption and tourism activity.
The additional €19 million in VAT receipts suggests robust domestic spending and taxable economic activity; however, challenges related to monitoring the grey economy persist. The interest in accessing data from Booking and Airbnb highlights ongoing difficulties in tracking significant portions of the market effectively.
The successful implementation of automated data exchanges will require clear legal frameworks, privacy protections, and compatibility between international platforms and domestic systems. Authorities must also establish processes for differentiating between occasional household rentals and professional operations while resolving discrepancies between platform records and taxpayer declarations.
For taxpayers, these developments could lead to substantial changes in compliance requirements as Montenegro shifts its enforcement focus from inspectors to data-driven approaches. If successful integration occurs among platform information, electronic invoices, and digital registers, discrepancies may be identified before any physical inspections take place.
This evolution indicates that online visibility may soon translate into tax visibility within Montenegro’s tourism sector.
