The Ministry of Finance of Montenegro has adopted a regulation exempting yacht and vessel owners from paying fuel excise taxes, explaining that this measure is intended to stimulate the development of nautical tourism. The regulation has been published on the Government’s website and will take effect on the date of its publication in the Official Gazette.
Starting from January 2025, Montenegro will reinstate duty-free fuel supply for foreign-flagged yachts, covering both private and commercial (charter) vessels. This benefit, which was discontinued in 2022, is being reintroduced to further enhance Montenegro’s position as one of the leading yachting centers in the Mediterranean.
The Ministry of Finance has adopted regulations exempting yacht and other vessel owners from excise duties on fuel, citing this measure as an incentive to boost nautical tourism development.
Currently, excise duty on fuel ranges from 33 to 44 cents per liter, and it is included in the base for VAT calculation. With this change, owners of luxury yachts will once again pay significantly less for fuel compared to the general public. Yacht owners had been exempt from excise duties until June 2022, when they were introduced at the proposal of then-Minister of Finance Aleksandar Damjanović. At the time, the Ministry estimated that the state budget had lost approximately €59 million between 2018 and July 2022 due to uncollected excise duties and VAT on fuel for yachts and boats.
The new regulations will take effect in January 2025, following their official publication, along with detailed conditions. The Ministry of Finance will oversee compliance with these rules, ensuring that the benefits are used in accordance with the law. This move will bring significant savings to yacht owners and operators, further establishing Montenegro as an attractive destination for nautical tourism.
The benefit is contingent on private vessels remaining in Montenegro’s territorial waters for at least 72 hours, starting from the day after their entry. After refueling, vessels are required to leave Montenegro’s territorial waters but may return thereafter.
Duty-free fuel will be available in the following marinas:
* Porto Montenegro in Tivat, capable of accommodating yachts of all sizes, including the largest superyachts;
* Portonovi, located on the coast of the Bay of Kotor, offering 238 berths for yachts up to 90 meters;
* AD Marina Bar, Montenegro’s southernmost marina in Bar, featuring over 1,000 berths for yachts up to 45 meters.
This marks a significant step forward in strengthening Montenegro’s nautical sector and providing additional benefits for yacht owners as well as the country’s entire tourism industry.
Photo: freepik.com
