Are short-term rentals such as Airbnb allowed in Montenegro?

Short-term tourist rentals are permitted in Montenegro but are subject to municipal regulations that vary by city, including Budva, Kotor, Tivat and Herceg Novi. Owners are required to obtain a tourist rental licence, register guests with local authorities and collect applicable tourist taxes. Certain residential buildings or gated communities may have HOA rules that restrict or prohibit short-term letting. Before purchasing a property with the intention of operating it as a short-term rental, it is essential to confirm the permitted use category with a local lawyer and, where relevant, the building management. Barok Estates advises investment clients on the specific rental regulations applicable to each property and location prior to acquisition.