New Law on Real Estate Legalization 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 Montenegrothe newlaw on the legalization of unauthorized structureshas come into force. The document was adopted at the eighth session of the 28th convocation of the Parliament of Montenegro on July 31, 2025, and signed by the president on August 1. Its introduction has become an important event for the real estate market, as ownership rules and property transactions will now be strictly tied to the availability of permitting documentation.
What the new law regulatesThe law establishes the procedure for legalizing unauthorized buildings, describes the legal consequences of obtaining approval, and determines which specific properties can be legalized.What is considered an unauthorized structureAccording to the law,
an unauthorized structureis a building or part of a building that was:
built, reconstructed, extended, or added to
without a building permitor another official act authorizing construction,
carried out
in violation of the permit conditionsor exceeding the allowable area defined by urban planning and technical standards.
The category of unauthorized structures 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,structures 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
At present,
notaries have suspended transactionsinvolving properties with the status"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 has become impossible.
The law provides for a transitional period. Owners of unauthorized structures 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 obtaining permits is becoming mandatory for everyone planning real estate transactions.
Guide to buying property in Montenegro in 2025: step-by-step instructions with examples and case studies
The new law will hit coastal regions especially hard — Budva, Kotor, and Bar. It is here that the largest number of “rule-bypassing” buildings 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 or lose the ability to dispose of the property.
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.
6 months for legalization
For buyers and investors, the new law provides greater 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 only to later discover that it cannot be legalized or connected to utilities.
For owners of unauthorized structures, the next six months are becoming decisive. Those who manage to submit the 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.
How legalization will work
The procedure involves several steps:
Submitting an application to the local authority.Submitting technical documentation (plans, designs, engineers’ reports).Checking compliance with urban planning and environmental standards.A decision on the possibility of legalization.
If the outcome is positive, the owner receives official approval 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 approval will be extremely difficult.
If you own property in Montenegro
that falls under the new legalization law
, our specialists canhelp you navigate the procedure. We know which documents are needed, where and by what deadlines to submit them, and what to take into account 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.Order a property inspection here.
