Montenegro has formed a specialised enforcement team to target unregistered real-estate intermediaries, introducing coordinated inspections and closer monitoring of property advertising as authorities seek to strengthen compliance in a market closely linked to foreign investment.
The initiative was announced, head of the government body coordinating inspection services, at the Montenegro Real Estate Forum in Budva. Authorities say numerous intermediaries operate outside the formal system, creating unequal competition for licensed agencies and limiting tax transparency.
The enforcement operation is expected to involve several inspection authorities working together. Officials also intend to monitor property advertisements on social networks and digital platforms, where individuals can offer brokerage services without necessarily operating through registered agencies.
Expanded Inspection Powers and Market Oversight
Legislative changes adopted in 2025 strengthened inspectors’ powers, including permitting access to business premises with judicial authorisation. The new enforcement approach extends oversight beyond conventional checks of brokerage licences to include online advertising and intermediary activities.
Unregistered brokers can avoid expenses associated with company registration, taxation, professional standards and employment obligations. This allows them to offer lower fees while licensed agencies bear the full costs of regulatory compliance.
Stronger enforcement could therefore improve competitive conditions for established agencies while increasing transaction transparency for property buyers and investors.
Foreign Investment Raises the Importance of Regulation
Real estate remains one of Montenegro’s major channels for foreign capital, particularly in Budva, Tivat, Kotor and Podgorica. A substantial number of transactions involve foreign buyers, increasing the importance of professional brokerage in due diligence, tax compliance and the handling of deposits and ownership documentation.
Transactions can involve complicated issues relating to cadastral records, planning status, the legalisation of buildings and ownership of the underlying land. Professional intermediaries cannot eliminate these risks, but stronger regulation can improve accountability in the market.
Montenegro’s property sector is also becoming more sophisticated, with international developers, branded residences and large tourism projects entering the market. As transaction values rise, compliance with professional and regulatory requirements becomes increasingly important for agencies serving buyers and investors.
Authorities Have Yet to Quantify Fiscal Impact
The initiative forms part of the government’s broader efforts to reduce the shadow economy. Finance Ministry research indicates that informal activity among registered businesses has declined substantially since 2022, although commissions and intermediary services in the real-estate sector remain difficult to monitor. Authorities have not disclosed the number of suspected illegal intermediaries, projected tax recoveries or penalties planned under the new enforcement approach. The fiscal impact of the specialised team has also not been quantified, leaving the immediate significance of the initiative primarily regulatory.
The government will also need to distinguish between commercial brokerage and private property owners advertising their own assets. Unclear rules or overly broad enforcement could create uncertainty for individuals selling their properties. For foreign investors, clearer regulation could improve professional standards and reduce the risks associated with dealing with informal intermediaries. The effectiveness of the initiative will depend on whether inspections continue beyond high-profile enforcement actions and lead to more intermediaries entering the formal system.
