Montenegro’s Ulcinj Had €18 Million in Unpaid Property Taxes at 2025 Year-End

Montenegro’s coastal municipality of Ulcinj had €18.06 million in outstanding property-tax liabilities at the end of 2025, according to a state audit released on 4 November 2026 that also identified gaps in municipal financial records, employment practices and compliance with public-finance rules.

The State Audit Institution (DRI) issued an adverse opinion on the municipality’s compliance with applicable rules and a qualified opinion on its 2025 financial accounts. Those are distinct audit judgments: the compliance opinion addresses departures from laws and regulations, while the qualified financial opinion reflects insufficient appropriate evidence and the possibility of material, but not pervasive, misstatements. Neither is a finding that €18 million was stolen.

The audit recorded €18,064,573.45 in unpaid property-tax claims as of 31 December 2025, covering individuals and companies, buildings and land. It said €5,883,698.47 was charged in 2025 and €3,717,756.22 collected, with the year-end outstanding balance increasing by €2,165,942.26 from the previous year. These figures describe tax claims and collection, not a quantified fraud loss or a confirmed amount that can all be recovered.

The auditors also identified €3,505,663.04 in outstanding claims for municipal land-servicing charges at year-end, up €779,066.31 from 2024. The report said collection shortfalls in these two categories amounted to €2,945,009 during the year. The municipality was advised to establish a collection strategy, assess which claims remain recoverable and report progress to its assembly.

The institution said the municipality’s debt report did not cover all municipal-founded entities. During the audit response process, Ulcinj provided a debt report for its municipal utility showing €25,016.93 outstanding at the end of 2025 that had not been included in the municipal borrowing report. Auditors also cited acting appointments extending beyond the then-applicable six-month limit and 36 service contracts for work already covered by the municipality’s staffing plan.

The institution issued 33 recommendations. Ulcinj must submit an action plan by 3 December 2026 and a report on measures taken by 3 May 2027. The audit findings have been forwarded to the municipal assembly and relevant national authorities. The municipality supplied some documentation during the audit response process; a separate comprehensive municipal response to the released findings has not been verified for this report.

The next accountability test is whether the municipality provides a detailed collection plan and whether the audited debt and staffing records are corrected. Outstanding tax claims can include disputed, time-barred or otherwise uncollectible amounts, and the audit itself recommends assessing collectability rather than treating the entire balance as immediately available revenue.