Tivat is located in the central part of the Bay of Kotor, south of mount Vrmac.

Its central part, where Tivat Airport is located, lies in fertile Grbalj valley.

The airport is located near the isthmus of Luštica peninsula, which belongs to the municipality of Herceg Novi for the most part.

The former naval base is now "Porto Montenegro", a superyacht marina developed by Canadian billionaire Peter Munk, then sold in 2016 to the Investment Corporation of Dubai.

The municipal parliament consists of 32 deputies elected directly for a four-year term.