What’s New in the Montenegro’s Real Estate Regulations (2024-2026)
Between 2024 and 2026, Montenegro’s real estate regulations has undergone a series of changes that directly affect purchase costs, market transparency, and legal certainty. Some of these changes have increased the overall cost of buying property, while others have significantly reduced legal risks for buyers and brought more order to the market.
Below is a clear overview of what has changed, how things worked before, and what buyers should expect today.
1. Property Transfer Tax: Higher Than Before
How it worked before
Until the end of 2023, the real estate transfer tax on secondary market transactions was straightforward:
- a flat 3% tax rate applied regardless of the property’s value
This meant that both lower-priced apartments and high-value properties were taxed at the same rate, which particularly benefited buyers of more expensive real estate.
How it works now
As of January 1, 2024, Montenegro introduced a progressive property transfer tax for secondary market transactions:
- up to €150,000: 3%
- €150,001 to €500,000: €4,500 + 5% on the amount above €150,000
- above €500,000: €22,000 + 6% on the amount above €500,000
Compared to previous years, this represents a real increase in tax burden, especially for higher-value properties. Buyers now need to calculate acquisition costs more carefully, as the difference can be substantial.
It is also important to note that the tax base is determined by the municipality based on assessed market value, not solely the contract price. An artificially low purchase price does not guarantee a lower tax.
New developments purchased directly from developers remain exempt from transfer tax, as VAT at 21% is already included in the price.
2. Illegal Buildings: Market Clean-Up and Stronger Buyer Protection
This is one of the most significant changes in terms of buyer security and Montenegro real estate regulations 2026.
How it worked before
Illegally constructed properties frequently appeared on the market:
- transactions were completed despite unresolved legal status
- buyers often discovered problems only after purchase
- legal and financial risk was shifted from seller to buyer
This resulted in long delays, failed registrations, and costly legal uncertainty.
How it works now
The new Legalisation Law adopted in August 2025 introduced a clear break from past practice:
- properties without a valid building permit cannot be sold until legalised
- a restriction on transfer is registered in the cadastral records
- buildings not recorded on official satellite and aerial imagery cannot be legalised or entered into legal circulation
For buyers, this means:
- far fewer high-risk properties on the market
- easier verification of legal status through public records
- significantly reduced chance of acquiring a property that cannot be registered or legally transferred
Although certain deadlines and technical conditions may be adjusted during 2026, the core principle remains unchanged: illegal buildings are no longer freely tradable.
3. Licensed Real Estate Agents: Professionalisation of the Market
How it worked before
Real estate brokerage was weakly regulated. Licensed professionals and unqualified intermediaries operated side by side, increasing the risk of errors and incomplete due diligence.
How it works now
With the adoption of the Real Estate Brokerage Act in July 2025, the following requirements were introduced:
- a public register of licensed real estate agents
- mandatory professional exams
- clearly defined standards of conduct and client protection
These measures contribute to a more transparent and predictable transaction process, allowing buyers to better assess who they are working with and how their purchase is handled.
4. Urban Planning and Building Permits: More Order, More Predictability
In 2025, Montenegro adopted new laws regulating spatial planning and construction, restoring the importance of detailed urban plans and stricter permit control.
The practical outcome for buyers includes:
- stronger control over development in sensitive and high-value zones
- clearer rules on what can and cannot be built
- reduced risk of unexpected construction in the immediate surroundings
This brings greater long-term predictability and stability to property values.
5. Foreign Buyers: Neutral Changes to Residency Rules
The property purchase process itself has not changed for foreign nationals. Updates relate primarily to residency and investment structures.
As of January 1, 2026:
- temporary residence based on property ownership for non-EU/EEA citizens requires a minimum assessed property value of €150,000
- residence through company ownership now requires genuine business activity and employment
These changes do not restrict the right to purchase property, but they do affect post-purchase administrative status.
Conclusion
The regulatory changes introduced between 2024 and 2026 have reshaped Montenegro’s real estate market in concrete ways. Buying property today generally involves higher taxes than in previous years, but it also offers a much higher level of legal clarity and buyer protection.
With fewer illegal properties in circulation, licensed intermediaries, and clearer urban planning rules, transactions are becoming more transparent and predictable. For buyers, Montenegro real estate regulations 2026 mean fewer unknowns, but also a greater need for careful planning and proper due diligence.