Private housing rentals from 2025 will be directly linked to the new property legalization law
Private housing rentals will now be tied to the legal status of the properties: since August of this year, the Law on the Legalization of Unauthorized Constructions has been in force, and for the first time it directly links the ability to rent accommodation to tourists with the legalization process....
Renting out private housing will now be tied to the legal status of the property: as of August this year, theLaw on the Legalization of Unauthorized Buildingscame into force, which for the first time directly links the ability to rent accommodation to tourists with the legalization process. This decision was a response to a long-standing problem: a significant share of tourist properties in the country had been operating without the required permits, creating risks for both owners and guests.
Private housing rentals: temporary allowance and mandatory conditions
According to the law, owners who have submitted an application for legalization and metthe minimum technical requirements
will be able to continue renting out their property for up to three years. This transitional period makes it possible to preserve part of the tourist accommodation capacity while gradually bringing the market into the legal framework.The mandatory set of conditions includes:
a declaration of compliance with technical standards,property and guest insurance,submission of legalization documents.
According to
the Chair of the Association of Private Accommodation Landlords, Branka Djoganović, the new law acts as a filter: tourists will be able to stay only in properties that are recognized as safe and meet basic standards.Liability and fines
The law establishes strict rules not only for owners, but also for government bodies. Thus,officialsin public authorities who fail to ensure compliance with the requirements or do not provide documents within the prescribed deadlines may be fined from60 to 4,000 euros
.
This measure is aimed at increasing transparency and eliminating corruption risks.
In addition, owners of illegal properties are required to pay
an annual compensation
for the use of space — from 0.5% to 3% of the average construction cost per square meter, depending on whether documentation for the property has been provided.
The authorities emphasize that the main goal of the reform is to create asafer and more competitive tourism environment
.
During the transitional period — up to three years — owners will be able to operate in the status of “in the process of legalization.” But if, by the end of this period, the property does not receive official approval, its use for tourism purposes will be prohibited.
Everything you need to know about the new legalization law
.
The new law establishes the procedure for legalizing unauthorized buildings, describes the legal consequences of obtaining approval, and defines which properties can be legalized.
What is considered an unauthorized property
According to the law, anunauthorized propertyis a building or part of a building that was:
built, reconstructed, completed, or extended upwardwithout a building permitor another official act authorizing construction,
carried outin violation of the permit conditionsor exceeding the permitted area defined by urban planning and technical standards.
The category of unauthorized properties also includes:
auxiliary structures that form a functional whole with residential, commercial, or mixed-use properties,
buildings used in agriculture, for the protection and preservation of cultural heritage, or for the improvement of public green areas,
objects on which rough structural works were carried out without a permit.
In other words, this refers to all buildings that do not have “clean” documentation and have so far existed in a kind of gray zone.
The impact of the new law on real estate transactions
As of today,
notaries have suspended transactionswith properties whose status is“nema dozvole”(no permit). This is due to the entry into force of the new legalization law. Now,selling or renting out real estate without confirmed legalization documents is no longer possible.
The law provides for a transitional period. Owners of unauthorized properties must, within
six months, submit legalization documents and obtain a decision from the urban planning authority. Only then will they be able to fully dispose of their property.
Many are now waiting for clarifications and additional instructions, but it is already clear that the process of obtaining permits is becoming mandatory for everyone planning real estate transactions.
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The new law will hit coastal regions especially hard — Budva, Kotor, and Bar. It is here that the largest number of buildings erected “by bypassing the rules” have appeared over the past decades. Many owners added extra floors, expanded terraces, or built entire houses without permits. Now they have only two options: legalize the property or lose the ability to dispose of it.
Rural areas will also face difficulties, where documentary support for construction has traditionally not been given much attention. For small holdings, the legalization process may prove expensive and bureaucratically complex.
How legalization will proceed
The procedure involves several steps:
Submitting an application to the local authority.Providing technical documentation (plans, designs, engineers’ reports).Checking compliance with urban planning and environmental standards.
Making a decision on whether legalization is possible.
If the outcome is positive, the owner receives official approval and full legal rights to the property. Otherwise, the structure may be deemed subject to demolition.
I want to legalize my property: what should I do?
Lawyers advise not to delay the legalization process. It is important to remember that not all buildings can be legalized: if a structure was built in a protected zone or violates sanitary standards, obtaining approval will be extremely difficult.
You can order a property inspection on the website
, our specialists canhelp you understand the procedure.
We know which documents are needed, where and by what deadlines to submit them, and what to consider so that the property officially receives legal status. This approach will save you from unnecessary bureaucracy and allow you to sell, rent, or use the property without problems in the future.For more information, contact us —sales@mdrealty.me
Or reach us at +382 67 447 626 (WhatsApp, Telegram)
За подробной информацией обращайтесь к нам — sales@mdrealty.me Или свяжитесь по номеру +382 67 447 626 (WhatsApp, Telegram)
