New Property Legalization Law in Montenegro 2025: What You Need to Know
As of August 1, 2025, a new law on the legalization of unauthorized structures has come into force in Montenegro. The document was adopted at the eighth session of the 28th convocation of the Parliament on July 31, 2025, and signed by the president on August 1. Its introduction became an important event...
As of August 1, 2025, in Montenegro came into force a new law on the legalization of unauthorized structures. The document was adopted at the eighth session of the 28th convocation of the Parliament on July 31, 2025, and signed by the president on August 1. Its appearance became an important event for the real estate market, because now the rules of ownership and property transactions will be strictly tied to the availability of permitting documentation.
What the new law regulates
The law establishes the procedure for legalizing unauthorized buildings, describes the legal consequences of obtaining a permit, and determines which specific properties can be legalized.
What is considered an unauthorized structure
According to the law, an unauthorized structure is a building or part of a building that was:
built, reconstructed, expanded, or added to without a building permit or another official act authorizing construction,
carried out in violation of the permit conditions or exceeds the allowable area defined by urban planning and technical standards.
The category of unauthorized structures also includes:
auxiliary buildings 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,
structures on which rough structural work was carried out without a permit.
In other words, this refers to all buildings that do not have “clean” documents 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 transactions involving properties with the status "nema dozvole" (no permit). This is due to the entry into force of the new legalization law. Now the sale or rental of real estate without confirmed legalization documents becomes impossible.
The law provides for a transitional period. Owners of unauthorized structures must, within six months submit legalization documents and obtain a ruling from the urban planning authority. Only after that 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 permit process is becoming mandatory for everyone planning real estate transactions.
The new law will especially affect coastal regions — Budva, Kotor, Bar. It is here that the largest number of buildings “outside the rules” has appeared over the past decades. Many owners built additional floors, expanded terraces, or constructed entire houses without permits. Now they have only two options: legalize them or lose the ability to dispose of the property.
Difficulties also await rural areas, where little attention was traditionally paid to documentary support for construction. For small businesses, the legalization process may turn out to be expensive and bureaucratically complicated.
6 months for legalization
For buyers and investors, the new law provides more certainty. Now any real estate transaction in Montenegro will be accompanied by a mandatory check of legalization documents. This reduces the risks of buying a beautiful house by the sea and later discovering that it cannot be legalized or connected to utilities.
For owners of unauthorized buildings, the next six months are becoming decisive. Those who manage to submit documents will be able to freely dispose of their property and sell it at market price. Those who ignore the new rules will face the fact that their house is effectively “frozen” on the market: it will be impossible to sell or officially rent it out.
Checking compliance with urban planning and environmental standards.
Making a decision on the possibility of legalization.
If the outcome is positive, the owner receives official permission and full legal rights to the property. Otherwise, the structure may be declared 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 a permit will be extremely difficult.
If you have real estate in Montenegro, that falls under the new legalization law, our specialists can help 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 in the future without problems.
