In recent decades, Montenegro has faced a serious problem — massive illegal construction. The irresponsible construction of houses, hotels, and commercial facilities without proper permits and approvals has become a real headache for the authorities. This not only undermined the legitimacy of the country's real estate market, but also harmed environmental and social stability.
Illegal buildings were often built in attractive tourist and recreational areas, which damaged landscapes and undermined investment attractiveness. Based on this, the Montenegrin government has taken a number of steps to resolve the situation — among them, the main innovation is the new law on the legalization of real estate, which entered into force in August 2025.
The New Law On Legalization — The Essence And Goals
On July 31, 2025, the Parliament of Montenegro adopted a new regulatory act, which was named the "Law on Legalization". It entered into force on August 14, 2025. This legislative change is intended to correct errors and shortcomings identified during the implementation of the first such program since 2017.
The 2017 program allowed legalizing less than 6% of the total number of applications submitted (3,217 out of more than 60,000). As a result, many owners simply refused to legalize, and illegal objects continued to exist in a "gray zone" — a legal vacuum. Such a low result is due to several factors:
- Bureaucratic difficulties in paperwork,
- High fines and registration costs,
- Insufficient awareness of owners,
- Lack of clear criteria and procedures on both sides.
Objectives of the new law:
Simplify legalization procedures, define clear and strict deadlines for submitting documents, increase legal certainty and transparency of the real estate market, reduce the number of illegal buildings and stimulate investment and economic activity in the real estate sector.
Who Can Legalize Their Real Estate And How?
According to Marko Bulatovic, Director of the Montenegro Real Estate Department, both individuals and legal entities have the right to apply. The owner must register the object in the cadastre and submit the appropriate documents for legalization.
Basic Documentation Requirements
For successful registration, it is necessary to submit: documents confirming ownership or other legal grounds; technical documentation on the object; a plan of the object, a plot diagram; extracts from the cadastre. The simplified procedure will allow owners to prepare the necessary papers faster, and government agencies will ensure faster processing of applications. The deadline for submitting applications is February 14, 2026. The owners of illegal buildings have been given 6 months from the date of entry into force of the law (from August 14, 2025) to submit documents and register buildings. Delay or disregard of the law can lead to the complete loss of the constructed property. The law provides for serious measures of influence in case of non-fulfillment of duties. These include:
- Mandatory demolition of illegal buildings,
- Loss of rights to a real estate object,
- Possible administrative fines and sanctions.
