Montenegro has entered a new phase regulating private accommodation and the use of illegal buildings for tourism. The recently enacted Law on Legalization of Illegal Buildings, effective August 2025, sets stricter requirements for property owners while allowing those meeting minimum standards to continue operating during the legalization process. The goal is to balance orderly development with the reality that many tourist accommodations currently lack proper permits.
Branka Džoganović, President of the Association of Private Accommodation Providers, emphasized that requirements such as a declaration of technical compliance and mandatory insurance for guests are key to ensuring a safer environment. Properties meeting these standards and submitting legalization requests can obtain temporary rental permits, serving as a filter to separate safe accommodations from non-compliant ones.
The Ministry of Spatial Planning clarified that enforcement of illegal rental activities falls under other inspectorates. Legalization allows operations for up to three years from the law’s adoption, after which continued renting is prohibited without approval. Owners must also pay an annual usage fee ranging from 0.5–3% of the average construction cost per square meter, depending on whether proper documentation has been submitted.
The law links legalization directly with tourism operations, introduces penalties for officials failing to comply with deadlines, and clarifies rules on temporary renting, annual fees, and property transfers, aiming to increase transparency and legal compliance in Montenegro’s tourism sector.
