Analysis from Akcija za socijalnu pravdu has revealed that Montenegro’s government forfeited approximately €104 million in revenue by the end of last year due to favorable tax and excise policies on fuel sales for yacht tourism, particularly concerning the development of luxury marinas at Porto Montenegro. This figure reflects potential revenue that could have been generated under a neutral tax regime, which was not collected due to exemptions provided by existing policies.
The preferential tax treatment includes exemptions from fuel taxes and excise duties for yacht owners and large vessels. This regime was established by a previous administration through a special rulebook aimed at attracting investments in Porto Montenegro. The reduced fuel costs for high-end yacht operators lower their operational expenses and position Montenegro as a key refueling destination within the nautical sector. However, critics argue that these tax breaks primarily benefit affluent vessel owners and do not conform to broader European Union tax norms.
A minority government had temporarily eliminated these tax privileges in an attempt to restore a more conventional tax framework; however, the current administration reinstated them, as noted by ASP. Observers suggest that such fiscal incentives were often prerequisites set by foreign investors, including those from the United Arab Emirates involved in the Porto Montenegro project, to secure strategic leases and investment agreements. These arrangements typically involve long-term leasing of coastal land and maritime zones, characterized as hybrid models that combine asset sales with extended operational rights.
The €104 million loss in potential tax revenue raises questions about the trade-offs associated with targeted fiscal incentives aimed at stimulating niche tourism sectors. Proponents of yacht tourism claim that the tax exemptions can enhance overall economic activity through increased visitor spending and related services. In contrast, critics maintain that the scale and structure of these benefits compromise equitable tax treatment and divert funds from the general budget.
The ongoing debate regarding the fiscal implications of yacht fuel tax breaks is part of broader discussions on Montenegro’s economic policy direction, its competitiveness in maritime and tourism industries, and its alignment with EU standards as the nation seeks deeper integration into European markets.
