The recently adopted Law on Legalization of Unregistered Buildings in Montenegro bans the renting and leasing of illegal properties, including those built without a permit or in violation of existing permits. The law allows commercial activity in unregistered buildings for a maximum of three years, during which owners must legalize their properties.
The Ministry of Spatial Planning and Urbanism emphasized that the law aims to ensure a regulated, safe, and transparent real estate market, protecting both owners and tenants by granting legal security only to legalized properties.
Real estate experts warn the law may push some property owners toward informal renting, potentially increasing “black market” leases and driving demand and rental prices for legally cleared units.
Authorities expect the legislation to reduce the grey market over time, strengthen legal transactions, stabilize the real estate market, and increase state tax revenues.
