Visa Regime Changes, EU Tax Harmonization, and New Excise Duties
Over the past week, the Government announced the upcoming abolition of the visa-free regime for citizens of several countries. Additionally, excise duties on motor fuels were temporarily reduced, a comprehensive package of tax laws harmonized with the EU acquis was published, and new rules for corporate taxation were introduced.
Migration and Residence
The visa-free regime for citizens of Russia, Belarus, China, Saudi Arabia, and Turkey will be abolished after October 31, 2026.
The Government has amended the Regulation on the Visa Regime, setting an expiration date for the visa-free entry of citizens from several countries. The right to enter and stay in Montenegro without a visa for up to 30 days for citizens of Saudi Arabia and Turkey Art. 1a, as well as Russia and Belarus Art. 3a, will only be valid until October 31, 2026. The same deadline applies to citizens of China entering as part of organized tourist groups or holding business passports Art. 6.
Budget and Tax Law
A new Law on Excise Duties has been published, expanding the scope of taxation.
The new Law on Excise Duties, which will become applicable on the day of Montenegro's accession to the European Union, significantly expands the list of excisable goods Art. 5. Unlike the current law, which already taxes sugar-sweetened beverages, e-liquids, single-use plastics, and sweets, the new law adds nicotine pouches, herbal nicotine products, and ice cream to this list.
Excise duties on tobacco products are significantly increased, and new rates for alternative smoking products are introduced.
The new law provides for a drastic increase in excise duties on tobacco products. The rate on smoking tobacco will rise from the current 25 EUR/kg to 190 EUR/kg Art. 75. Precise European tariffs for alternative products are also introduced: the excise duty on e-liquids will be 0.70 EUR/ml, and on heated tobacco 35 EUR/kg. On the other hand, rates on basic types of alcohol (beer, wine, ethyl alcohol) Art. 86 and energy products (gasoline, gas oils) Art. 96 will remain at their current levels.
Excise duty amounts for the turnover of unleaded gasoline and gas oils have been temporarily reduced.
The Government has adopted a decision to reduce excise duties on unleaded gasoline and gas oils used as motor fuel Art. 1. The new excise duty rate on gasoline is 0.494 EUR per liter, and on gas oils 0.308 EUR per liter Art. 2. The reduced rates will apply from July 21 to August 3, 2026 Art. 3.
New rules for the exchange of tax information with the EU, including crypto assets, have been introduced.
The Law on Tax Administration has been supplemented with new concepts for the automatic exchange of information with the European Union. Among other things, the concept of a "crypto-asset service provider" has been introduced, which is now obliged to report on its clients' transactions. A Central Liaison Office (CLO) is also being established for direct communication with the European Commission and the competent authorities of EU Member States.
Taxation rules during the division of companies have been clarified.
The concept of a "branch of activity" (grana djelatnosti) has been introduced into the Law on Corporate Income Tax. This represents all assets and liabilities in the division of a company that operate independently in a business-organizational sense, i.e., an entity that can function independently with its own assets. This amendment facilitates tax treatment during business reorganization. The amendments entered into force on July 17, 2026.
A new Law on Value Added Tax, harmonized with EU rules, has been published.
A new Law on Value Added Tax has been enacted, which fully adapts Montenegro's tax system to European Union standards Art. 1. The law details the subject of taxation, including the intra-Community acquisition of goods Art. 7. The law will become applicable on the day of Montenegro's accession to the European Union.
Rules for resolving tax disputes between Montenegro and EU Member States have been established.
The new law defines mechanisms for resolving disputes arising from agreements on the elimination of double taxation between Montenegro and EU Member States Art. 1. Taxpayers will be able to file a complaint within three years from the receipt of notification of measures that are not in accordance with international agreements Art. 4. If the competent authorities fail to reach an agreement, an advisory commission will be established at the taxpayer's request to resolve the dispute Art. 7.
European mechanisms for combating VAT fraud are being implemented.
The Law on the Implementation of Regulation (EU) 904/2010 on administrative cooperation of competent authorities has been enacted Art. 1. This act will enable the tax authorities of Montenegro and EU Member States to conduct simultaneous and joint controls of taxpayers Art. 11. The law will become applicable on the day of Montenegro's accession to the European Union.
Social and Child Welfare
A maternity benefit has been introduced for spouses of entrepreneurs.
An important amendment has been made to the Law on Social and Child Protection: now, spouses or life partners of persons engaged in entrepreneurial activity, who usually participate in carrying out that activity, are entitled to a maternity benefit. The benefit is provided in the event of an interruption of professional activity due to pregnancy and childbirth. The amendments entered into force on July 17, 2026.
Customs System
Fees for conducting customs procedures outside working hours have been established.
New tariffs have been introduced for conducting customs procedures at the request of the declarant outside the working hours of the customs authority or in premises that are not customs premises Art. 2. The fee for the work of a customs officer under these conditions is 20 EUR per commenced hour Art. 4. Transportation costs are additionally charged at the rate of 0.20 EUR per kilometer traveled. The decree enters into force on July 30, 2026 Art. 12.
Conditions for tax exemption upon temporary importation of means of transport from the EU have been defined.
The law regulates the exemption from VAT and motor vehicle tax upon the temporary importation of cars, vessels, and aircraft from EU Member States into Montenegro Art. 1. The exemption is granted for a period of up to six months within 12 months for persons with a normal residence in the EU who use the means of transport exclusively for private purposes Art. 5. The law will become applicable on the day of Montenegro's accession to the European Union.
Water and Maritime Law
Rules on anchoring vessels have been tightened.
Amendments to the Law on Maritime Navigation Safety have strictly defined anchoring locations Art. 10. Now, vessels may only anchor at anchorages marked on nautical charts and in permitted anchoring areas, in a manner that does not endanger the safety of navigation, human lives, underwater installations, or the environment. The amendments entered into force on July 17, 2026.