Montenegro is tightening control over digital platforms, including Booking and Airbnb, as well as cryptocurrency income. The new amendments to the Tax Administration Law, open for public consultation until November 19, stipulate that all digital platform operators — Booking, Airbnb, and crypto-related services — will have to register in Montenegro.
In addition, property owners and private individuals, who rent out accommodation through online platforms or receive income from cryptocurrencies, will be required to declare their assets 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 with European Union directives. After Montenegro joins the EU, the country will begin the automatic exchange of information on digital platform users and cryptoasset owners with the tax authorities of member states.
The authorities emphasize that the mobility of capital, services, and goods has significantly complicated tax collection and created new opportunities for evasion. In this regard, Montenegro intends to actively participate in international initiatives, including the Global Forum on Tax Transparency and Automatic Exchange of Information.
Registration of Booking, Airbnb, and other platform operators
According to the draft law, all companies operating digital platforms for housing rentals, transport bookings, or the provision of other services will be required to register in Montenegro if they are not registered in one of the EU countries.
Such operators will have to:
- collect and store data on platform users and their transactions;
- provide tax authorities with information on commission amounts, withheld taxes, and the number of transactions;
- store all data for at least five years.
These rules comply with European standards and are aimed at combating money laundering and tax evasion.
Cryptocurrency — under full control
The amendments also apply to owners and operators working with cryptoassets. All cryptocurrency transactions will be entered into a single EU register, and companies providing cryptoasset services will be required to register with the Montenegro Securities Commission if they are not registered in another EU country.
These companies will have to keep records of all clients — both individuals and legal entities — and report on:
- transactions,
- assets,
- income from cryptocurrency transactions.
All information will be verified in accordance with the EU Common Reporting Standard (CRS).
The end of “gray” rentals
One of the key aspects of the reform will be bringing into the tax system all landlords who have so far not paid taxes on income received through platforms such as Airbnb and Booking.
The draft law explicitly states that individuals who violate the new data collection and transmission requirements will be held accountable and face fines.
The authorities expect that these changes will:
- reduce the level of the shadow economy,
- increase tax revenues to the budget,
- and create fairer competition conditions in the rental and digital services market.
When the changes will take effect
The main part of the law will enter into force the day after publication in Montenegro’s Official Gazette. From that moment, cryptoasset owners will be required to report to the Tax Administration income and assets related to cryptocurrency transactions.