Montenegro has entered a new phase in regulating private accommodation and the use of illegal buildings for tourism. The new Law on the Legalization of Illegal Buildings, in force since August, introduces stricter rules and clear obligations for owners while allowing those who meet minimum standards to continue renting during the legalization process.
Branka Džoganović, president of the Association of Private Accommodation Providers, said requirements such as a statement of technical compliance and mandatory insurance for accommodation and guests are key to ensuring safety. Properties meeting these requirements can apply for rental permits while their legalization process is ongoing.
The law links legalization directly to tourism for the first time, introducing penalties for state and local officials who fail to follow procedures, and setting rules on temporary rentals, annual fees, and restrictions on property transfer.
Owners of properties in the legalization process may operate for up to three years from the law’s adoption. After that, without legalization approval, renting is prohibited. Annual usage fees are set between 0.5% and 3% of the average construction cost per square meter, depending on documentation provided, with rates determined by municipalities and approved by the Ministry.
Officials stress that the law aims to create a safer and more transparent tourism environment while addressing the widespread use of unpermitted properties.
