Montenegro is tightening controls over digital platforms, including Booking and Airbnb, as well as cryptocurrency revenues. New amendments to the Tax Administration Law, submitted for public comment until November 19, stipulate that all digital platform operators—Booking, Airbnb, and cryptocurrency-related services—will be required to register in Montenegro.
Additionally, property owners and individualswho rent out their homes through online platforms or earn income from cryptocurrencies, will be required to declare property and income.
Tax transparency and automatic data exchange with the EU
The goal of the reform is to increase the transparency of the tax system, reduce the scale of tax evasion and bring legislation into line in accordance with European Union directivesFollowing Montenegro's accession to the EU, the country will begin automatically exchanging information on digital platform users and crypto asset owners with tax authorities in member states.
The authorities emphasize that the mobility of capital, services, and goods has significantly complicated tax collection and created new opportunities for tax evasion. Therefore, Montenegro intends to actively participate in international initiatives, including the Global Forum on Tax Transparency and Automatic Exchange of Data.
Registration of operators of Booking, Airbnb and other platforms
According to the draft law, all companies operating digital platforms for housing rentals, transport bookings, or providing other services will be required to register in Montenegro unless they are already registered in an EU country.
Such operators will be required to:
- collect and store data about platform users and their transactions;
- provide tax authorities with information on the amounts of commissions, taxes withheld and the number of transactions;
- store all data for at least five years.
These standards comply with European standards and are aimed at combating money laundering and tax evasion.
Cryptocurrency – Under Complete Control
The amendments also apply to owners and operators working with crypto assets.
All cryptocurrency transactions will be entered into a single EU register, and companies providing crypto-asset services are required to register with the Securities Commission of Montenegro unless they are registered in another EU country.
These companies will be required to maintain records of all clients – both individuals and legal entities – and report:
- transactions,
- assets,
- income from cryptocurrency transactions.
All information will be checked against the EU Common Reporting Standard (CRS).
The end of "gray" rentals
One of the key aspects of the reform will be the inclusion in the tax system of all landlords who have not yet paid taxes on income received through platforms like Airbnb и Booking .
The bill explicitly states that individuals who violate the new data collection and transfer requirements will be held accountable and subject to fines.
Authorities expect these changes to:
- will reduce the level of the shadow economy,
- will increase tax revenues to the budget,
- and will create fairer conditions for competition in the rental and digital services market.
When will the changes come into effect?
The main part of the law will enter into force the day after its publication in the Official Gazette of Montenegro. From then on, cryptocurrency owners will be required to report any income and assets related to cryptocurrency transactions to the Tax Administration.
