The Parliament of Montenegro has adopted the Law on Amendments to the Law on Property Tax (“Official Gazette of Montenegro”, no. 133/25 of 19.11.2025), which clarifies and expands the categories of immovable property included in the basis for determining the average market price per m². The amendment refers to Article 6b paragraph 3 item 3, where the term “immovable temporary” is followed by the additional term “engineering”.
This amendment introduces a new category of structures for the purpose of value assessment — particularly in the area of infrastructure and technical constructions that were previously not precisely defined.
Which immovables are now included in the property tax calculation?
The average market price per m² will now be determined for:
- auxiliary structures,
- non-residential structures,
- immovable temporary structures,
- engineering structures — a new category introduced by this law.
Engineering structures include a broader range of constructions that are not classic residential or commercial buildings, but specific technical, infrastructural, and other types of structures that require a separate valuation model.
Additional important amendments – abolishment of multiple tax exemptions
In addition to introducing the new category of structures, the Law on Amendments to the Law on Property Tax (“Official Gazette of Montenegro”, no. 118/25 of 16.10.2025) also brings significant changes to Article 13, where paragraphs 3, 4, and 5 have been deleted — which in practice means the abolishment of several existing tax exemptions.
Which exemptions are being abolished?
The deleted provisions included property tax exemptions for immovable property:
- owned by the state and used by state authorities, local self-government, and public services;
- owned by the Central Bank of Montenegro;
- owned by diplomatic and consular missions (subject to reciprocity);
- owned by international organizations (if provided by agreement);
- designated as cultural monuments (unless used for residential purposes);
- owned by religious communities and used for religious purposes;
- owned by NGOs and used for their functions;
- including public roads, streets, parks, ports, railways, airports, protected forests, and national parks.
These exemptions applied only if the property was not used to generate income.
What else ceases to apply?
Also abolished are the exemptions relating to:
- buildings under construction owned by individual investors, not intended for sale;
- buildings owned by investors intended for sale, recorded as “work in progress” or “inventory of finished goods”;
- cases where the total tax base of the taxpayer does not exceed €5,000.
With the removal of these provisions, a significant number of properties previously exempt are now included in the tax base.
Relevant excerpt from the amendment
“The average market price per m² of a construction structure for auxiliary, non-residential, immovable temporary, and engineering structures shall be determined in such a way that the average market price per m² of a residential building in the local self-government unit may be adjusted with a coefficient ranging from 0.10 to 2.00.”
Why are the amendments to the property tax law important for taxpayers?
1. Larger scope of taxable properties
By introducing engineering structures and removing several exemptions, the range of properties included in taxation is expanded.
2. Potentially higher tax liability
Entities owning properties that were previously exempt may now expect tax to be calculated.
3. Clearer determination of coefficients
Local governments now have a more precise basis for setting the value coefficient per m² for this expanded category of structures.
4. Less room for differing interpretations
Harmonizing the legal text contributes to more consistent application of the law.
Entry into force
These amendments apply on the eighth day following publication in the “Official Gazette of Montenegro”, obliging tax authorities and taxpayers to immediately align their records and calculations with the new legal provisions.
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