Montenegro Extends Deadline for Registering Illegal Properties

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In Montenegro, the deadline for submitting documents to register illegally constructed properties has been extended. The country’s parliament adopted amendments to the legalization law, Investitor.me reports. Property owners must now submit applications together with a complete set of required documents.

What Has Changed in Montenegro’s Real Estate Market

Previously, owners of illegal properties could apply to the cadastral authorities with an incomplete application in order to meet the deadline and provide the missing information later. This option has now been abolished.

Before applying, owners must obtain an elaborat of the property’s actual condition — a technical document recording the characteristics of the existing building. Applications will only be accepted when accompanied by all documents required by law.

Experts note that entering an illegally constructed property into the cadastral records is an important stage of the process, but it does not by itself make the building legal. Owners must still complete the remaining stages of the legalization procedure.

Experience of the 2018–2019 Legalization Campaign

In 2018, the campaign to legalize illegal buildings in Montenegro set July 15 as the deadline for submitting applications, Vijesti recalls. By September 2019, authorities had processed around 30,000 of the 51,000 applications received and had legalized only 643 properties.

Marko Čanović, a representative of the Ministry of Sustainable Development and Tourism, said at the time that around 3,800 procedures had been suspended because the buildings did not comply with existing planning documents or because property ownership issues remained unresolved. Almost 24,000 applications were also incomplete, and applicants were asked to provide additional information. Around 2,400 applications were submitted after the deadline and were therefore no longer eligible for consideration.

By that time, municipalities had assessed €1.256 million in utility fees related to the legalization process, of which €1.147 million had been collected. Budva, Bijelo Polje, Nikšić and Tivat recorded the highest revenues. Bijelo Polje, Petnjica, Kolašin, Pljevlja and Kotor had processed all applications they had received.

Around 10,000 illegal buildings remained outside the process. Authorities planned to determine their exact number by comparing orthophotography with cadastral data. Čanović also noted that buildings constructed after the survey was carried out would not be eligible for legalization.

Montenegro’s New Law on Illegal Buildings

Montenegro’s new law on the legalization of illegally constructed property came into force on August 14, 2025. Owners were initially given six months, until mid-February 2026, to submit applications and the required documents, including a geodetic survey.

In autumn last year, Marko Bulatović, head of Montenegro’s Real Estate Administration, said the agency had received around 2,000 applications. Most came from Podgorica, Bar, Ulcinj, Kotor, Budva, Žabljak, Danilovgrad, Herceg Novi, Nikšić and Rožaje.

At the time, around 59,000 illegal properties were officially recorded in the cadastre, while authorities estimated that the actual number could be significantly higher. Another challenge was a shortage of staff at the Real Estate Administration. More than 130 positions remained vacant, making it difficult to process the large number of applications.

Experts at JPM & Partners noted that the new law contains several controversial provisions. In particular, Article 33 prohibits transactions involving properties that have not been legalized until the procedure is completed. This has already effectively frozen part of the market, as notaries have refused to certify transactions involving such properties.

What This Means for Montenegro’s Real Estate Market and Investors

Analysts at International Investment note that illegal property remains a systemic issue in Montenegro and that it cannot be resolved quickly through administrative measures. As long as a large number of properties remain without fully settled legal status, the market is likely to face restrictions on transactions for some time.

For investors, this makes legal due diligence even more important when purchasing property. The presence of a property in the cadastre does not in itself guarantee that legalization has been completed, so the building’s legal status and prospects for completing the process should be checked separately. This is particularly important for properties offered at a significant discount because of unresolved legal issues.

In the longer term, completion of the large-scale legalization campaign could make the market more transparent and increase the number of properties available for unrestricted transactions. At the same time, stricter application requirements could leave some properties outside the process because of problems with documentation, land ownership or compliance with planning rules.

This could gradually create a clearer divide between properties with confirmed legal status and assets that continue to carry regulatory risks. As the legalization process progresses, the difference in their liquidity and investment appeal is likely to become increasingly pronounced.