Montenegrin Government introduces annual fee for construction delays

The Government of Montenegro has adopted a Regulation on detailed criteria for determining the annual fee for exceeding the construction completion deadline. This new measure could have a significant impact on the Montenegrin real estate market, particularly in cities where there has been a noticeable increase in residential and tourist construction projects over the past few years.
The introduction of an annual fee for construction delays aims to encourage investors to plan and execute projects more responsibly, while also contributing to greater transparency in a sector that has long been one of the key drivers of Montenegro’s economy.

5% fee for exceeding construction deadlines

At a recent government session, the new Regulation was adopted, outlining the method for calculating the annual fee charged for exceeding construction deadlines. According to the Regulation, investors will be required to pay an annual fee if construction is not completed within five years from the date of the building permit issuance.
The amount of the annual fee is set at 5% of the estimated value of the project, as stated in the revised main design on which the building permit was based. The investor must pay this fee into the budget account of Montenegro and submit proof of payment to the government authority responsible for issuing the building permit. In cases where the permit is issued by a local government body, the payment is made directly to the municipality’s account.
The Regulation was introduced to improve spatial planning, public safety, and the development of urban areas designed with people’s needs in mind.

How this regulation affects buyers, investors, and the market

The introduction of such regulations demonstrates the government’s commitment to creating a more structured and sustainable construction sector. If applied consistently, this measure is expected to increase public and foreign investor confidence in the Montenegrin real estate market.
It is also worth noting that Montenegro recently adopted the Law on Real Estate Mediation, another important step toward regulating the property market and strengthening the legal framework for safer and more transparent real estate transactions.

If you are planning to buy or sell property in Montenegro, it is important to stay informed about the latest regulations shaping the market. The Amfora agency team is here to provide you with all the necessary information and expert advice. Contact us for more information or visit our website: https://amforaproperty.com/.