According to analysis by the Akcija za socijalnu pravdu based on data obtained from official state institutions, the government of Montenegro forfeited an estimated €104 million in revenue by the end of last year as a result of preferential tax and excise policies on fuel sales for yacht tourism in the luxury marina development at Porto Montenegro. The figure represents revenue that the state could have collected under a neutral tax regime, but was instead foregone due to exemptions granted under existing policy frameworks.
The tax privileges in question relate to exemptions on fuel taxes and excise duties for owners of yachts and other large vessels, a regime that was originally introduced by a previous government through a special rulebook designed to attract investment in Porto Montenegro. This focused tax treatment effectively reduced the cost of fuel for high-end yacht owners, in turn lowering operational costs for these users and positioning Montenegro as a refuelling hub for the nautical sector. Critics argue that the exemptions disproportionately benefit wealthy vessel operators and are not aligned with broader European Union tax and excise policy norms.
The tax breaks were briefly rescinded by a minority government as an effort to restore a more standard tax framework, but were subsequently reinstated by the current administration, according to ASP’s statement. Industry observers point out that these kinds of fiscal concessions were often conditions set by foreign investors, including those linked to capital from the United Arab Emirates involved in the Porto Montenegro project, in order to secure strategic leases and investment commitments. Such arrangements included long-term leasing of coastal land and maritime zones, which have been described as hybrid models combining asset sale with extended operational rights.
From a public finance perspective, the loss of €104 million in potential tax receipts highlights the trade-offs inherent in targeted fiscal incentives designed to stimulate niche tourism segments. While proponents of yacht tourism argue that tax exemptions can boost broader economic activity through increased visitation, spending and related services, critics contended that the structure and scale of these privileges undermined equitable tax treatment and diverted revenue away from the general budget.
The debate over the fiscal cost of yacht fuel tax breaks intersects with wider discussions on Montenegro’s economic policy direction, competitiveness in maritime and tourism sectors, and alignment with EU norms as the country pursues deeper integration with European markets.
