As of July 31, 2025, the total debt of Montenegrin municipalities, including local enterprises and public institutions, exceeded €73 million, covering unpaid taxes and contributions. The most indebted municipalities are Cetinje, Berane, Bijelo Polje and Ulcinj, while some, including Podgorica, Tivat, Andrijevica, Gusinje and Tuzi, currently have no debt. Detailed municipal-level figures are not publicly disclosed due to tax confidentiality.
Of the total debt (€73.34 million), municipalities owe €27.88 million (principal €14.96 million, interest €12.92 million), local enterprises €39.15 million (principal €26.66 million, interest €12.49 million), and public institutions €6.32 million (principal €3.49 million, interest €2.83 million). Since the end of 2024, total debt increased by €6.51 million, mostly from accrued interest.
The Tax Administration highlighted challenges with tax compliance among local authorities. Enforcement measures are applied carefully to ensure essential services, such as sanitation and water supply, are not disrupted.
Authorities plan to introduce a new repayment program to help municipalities, local enterprises, and public institutions settle debts and maintain stable operations. Compliance under this new program will be closely monitored.
