Does a business premises lease have to be certified? Yes. The law requires written form and certification by the competent authority, and a lease concluded otherwise is null and void.
Local searches show that people want concrete rules for shops and offices: "zakup poslovnog prostora" (lease of business premises) is followed by "od fizičkog lica" (from a private individual) and "zakon" (law), people look for "izdavanje poslovnog prostora podgorica" (letting business premises Podgorica), "ugovor o zakupu poslovnog prostora" (business premises lease) is followed by "obrazac" (form) and "pdf", and "otkaz ugovora o zakupu poslovnog prostora" (termination of a business premises lease) is searched separately.
The Law on Obligations devotes a separate chapter to leases of business premises. Wherever that chapter is silent, the general rules on leases apply accordingly. This article explains the form of the contract, who pays and repairs what, alterations and subletting, notice, and the tax on the rent.
The contract: written form and certification
A lease of business premises must be concluded in writing and certified by the competent authority. A lease concluded otherwise is null and void. If two or more tenants sign separate leases for the same premises, the right to the lease belongs to the one who signed first.
Business premises in a residential building are separate units of the building, so the Law on the Maintenance of Residential Buildings applies to them as well:
- within 15 days of letting, the owner gives the building manager a written notice of the lease, and within 15 days of signing submits to the tax authority a copy of the lease certified by a notary or another competent body;
- the monthly amount for building maintenance is, as for a flat, 1 point per m² of net floor area and is paid by the owner. The occupier bears it only if this duty was taken on by contract.
How the manager is chosen and what a point is worth is explained in our article on the building manager and unit owners.
Who pays and who repairs what
| Question | Rule |
| Condition at handover | If the landlord does not hand over the premises in the agreed condition, the tenant may terminate, ask for a proportionate rent reduction or, after calling on the landlord and allowing a reasonable deadline, bring the premises into that condition at the landlord's expense, with damages |
| Repairs at the landlord's expense | The tenant notifies the landlord in writing without delay and sets a reasonable deadline; if the repairs are not done, the tenant may carry them out at the landlord's expense or terminate |
| Repairs without notice | A tenant who carries out repairs without prior written notice is liable to the landlord for the resulting damage, except for urgent repairs |
| Rent during repairs | Not payable while the premises cannot be used, and a proportionate part is payable for partial limitation; this does not apply to minor disturbance |
| Routine upkeep | Borne by the tenant unless agreed otherwise: cleaning, painting, minor repairs to installations and the like |
| Damage | The tenant repairs at own expense damage caused by the tenant or by people using the premises, and is not liable for deterioration from normal use |
| Shared facilities and services in the building | The tenant pays these costs when due unless agreed otherwise; they are deemed not included in the rent unless this is expressly agreed |
So if the rent is meant to include the building costs, the lease must say so expressly.
Alterations, landlord's works and subletting
- Substantial alterations. Without the landlord's consent the tenant may not make alterations that substantially change the structure, layout, area, use or external appearance of the premises. Consent is deemed given if the landlord was notified in writing of the intention and did not object in writing within 30 days of receipt. If the tenant does the works without consent or despite an objection, the landlord may terminate and claim damages.
- Installed fixtures. The tenant may remove them if this does not damage the premises.
- Landlord's works. During the lease the landlord may carry out works to fit out the premises or to cut energy and maintenance costs. The landlord must notify the tenant in writing three months before the works start of their type, start, scope and duration and of the new rent. Within two months of receiving the notice the tenant may terminate. If the tenant does not, rent during the works is paid as during repairs, and if the works are not finished within the announced period, the tenant is also entitled to lost profit, unless the landlord is not responsible for the delay.
- Subletting. The tenant has no right to sublet the premises or part of them unless this has been agreed. This is the reverse of the general lease rule, under which subletting is allowed unless the lease says otherwise.
The landlord's consent does not settle the building regulations. What is notified to the building inspector and what needs a permit is explained in our article on renovation and permits.
Terminating a business premises lease
A fixed-term lease ends when its term runs out. If the tenant keeps using the premises after that and the landlord does not object, a new open-ended lease on the same terms is deemed concluded. For an open-ended lease:
| Rule | What the law says |
| Earliest end | It cannot end by notice before six months from signing, unless the lease provides otherwise |
| Notice period | As agreed; if not agreed, three months, counted from the day the notice is delivered |
| Day of notice | Only the first or the fifteenth day of the month, unless the lease provides otherwise |
| Form | Written notice, delivered by registered post or in person |
The landlord may terminate at any time, regardless of the agreed term, if:
- the tenant, even after a written warning, uses the premises against the lease or causes them considerable damage by using them without due care;
- the tenant does not pay rent that has fallen due within 15 days of receiving a written warning;
- the landlord, for reasons beyond the landlord's responsibility, cannot use the premises where the landlord carried on business, and therefore intends to use the premises held by the tenant.
The tenant may terminate at any time if the landlord, within a reasonable deadline set by the tenant, does not bring the premises into the condition in which the landlord must hand them over or maintain them.
If the owner sells the premises during the lease, the buyer steps into the landlord's place and cannot demand the premises before the agreed term or the notice period ends.
Tax on the rent
Income tax. For a private individual who lets premises, the rent is income from property. Taxable income is the difference between the rent and documented actual costs; if costs are not documented, standard costs of 30% of the income are recognised. The rate is 15%.
| Who pays the rent | How the tax is paid |
| A company or a sole trader | The tenant calculates, withholds and pays the tax with each payment; from 2026 a resident landlord does not file an annual tax return for this income |
| A private individual | The tax is paid when the annual tax return is filed |
VAT. The Law on Value Added Tax exempts from VAT the lease of houses, flats and residential premises for permanent living for more than 60 days. The lease of business premises is not on that list, so a landlord who is a VAT payer charges VAT on the rent at the standard rate of 21%. A person whose turnover in the last 12 months does not exceed €30,000 is not a VAT payer; once it does, the person must register.
More on the tax on rental income is in our guide on how to rent out an apartment. Fijaka does not give tax advice; check a specific calculation with the tax authority or an accountant.
Short checklist before signing
| Question | Why |
| Is the lease in writing and certified | Otherwise it is null and void |
| Is the landlord the owner | Checked in the title extract |
| Does the rent include the building costs | If this is not stated expressly, it is deemed not to |
| Who bears routine upkeep | The tenant, unless agreed otherwise |
| Which alterations, and is subletting allowed | Not allowed without consent or a clause in the lease |
| Notice period and day of notice | Otherwise three months, and only on the 1st or 15th of the month |
| Is the landlord a VAT payer | If so, VAT is added to the rent |
You can list or find commercial premises for rent and sale in our real estate category.
Frequently asked questions
How long is the notice period for a business premises lease? Whatever was agreed, and three months if nothing was agreed. Notice is given in writing on the first or fifteenth day of the month unless the lease provides otherwise, and an open-ended lease cannot end by notice before six months from signing.
May the tenant sublet the premises? Only if this has been agreed. Without such a clause the tenant has no such right.
Who pays routine upkeep and building costs? Routine upkeep is borne by the tenant unless agreed otherwise. The charge for shared facilities and services in the building is also paid by the tenant, and it is deemed not included in the rent unless this is expressly agreed.
Is VAT charged on a business premises lease? The lease of business premises is not exempt from VAT, so a landlord who is a VAT payer charges it at 21%. A person whose turnover in the last 12 months does not exceed €30,000 is not a VAT payer.
How is the tax paid when I let premises to a company? The company, as payer, calculates, withholds and pays tax of 15% on the taxable income with each rent payment. From 2026 a resident landlord does not file an annual tax return for this income.
Sources
Leases of business premises are governed by the Law on Obligations (Official Gazette of Montenegro 47/2008, 4/2011 and 22/2017, articles 614, 619, 623, 624 and 637 to 655; later amendments to the law do not concern these articles). Separate units of a residential building are defined in article 165 of the Law on Property Relations, and the notice to the manager, submission of the lease to the tax authority and the monthly maintenance amount are governed by the Law on the Maintenance of Residential Buildings (Official Gazette of Montenegro 41/2016 and 84/2018, articles 16 and 23). Income tax on property income is governed by articles 10, 34 to 36, 43 and 49a of the Law on Personal Income Tax, with the 2025 amendments (Official Gazette of Montenegro 160/2025, applicable from 1 January 2026), and VAT by articles 24, 27, 42 and 55 of the Law on Value Added Tax, with the 2026 amendments (Official Gazette of Montenegro 12/2026). Fijaka is a listings platform and does not give legal or tax advice; for a specific lease, consult a lawyer or an accountant.