The government of Montenegro has initiated a focused enforcement strategy aimed at unregistered real estate brokers, responding to the need for tighter oversight in an industry crucial for foreign investment and residential property transactions. This effort was revealed by Milutin Butorović, who leads the government’s inspection coordination body, during the Montenegro Real Estate Forum held in Budva.
Officials have noted that many intermediaries operate outside the formal regulatory framework, which undermines licensed agencies and diminishes tax transparency. The new strategy will involve coordinated inspections across various authorities to address these issues.
In addition, authorities plan to scrutinize property listings on social media and digital platforms where individuals may offer brokerage services without being affiliated with registered agencies. Recent legislative amendments enacted in 2025 have enhanced inspectors’ authority, allowing them to access business premises with judicial approval.
This crackdown could yield broader implications beyond traditional licensing enforcement measures. The real estate sector is a significant conduit for foreign capital in Montenegro, particularly in regions such as Budva, Tivat, Kotor, and Podgorica. A substantial portion of transactions involves foreign purchasers, making professional brokerage essential for ensuring due diligence, tax compliance, and proper management of deposits and ownership documentation.
Unregistered brokers often evade the costs linked to company registration, taxation, and adherence to professional standards and employment obligations. This allows them to offer lower fees compared to registered businesses that are compliant with these regulations. Consequently, enhanced enforcement could level the playing field for established agencies while potentially increasing transaction transparency for buyers and investors.
Real estate transactions in Montenegro frequently entail complex issues related to cadastral records, planning status, legalizations, and land ownership. While professional intermediaries cannot fully mitigate these risks, a more regulated environment is expected to enhance accountability within the market.
This initiative aligns with the government’s broader objective of curbing the shadow economy. Research from the Finance Ministry indicates a significant decline in informal activities among registered businesses since 2022; however, real estate remains a sector where commissions and intermediary services are challenging to monitor effectively.
The fiscal implications of this new enforcement team have yet to be assessed. Authorities have not released information regarding the number of suspected illegal intermediaries or anticipated tax recoveries and penalties. As such, the immediate focus appears to be on regulatory improvements rather than financial outcomes.
It will also be crucial for the government to differentiate between legitimate brokerage services and private property owners marketing their own properties. If enforcement measures are overly broad, it could lead to ambiguity unless regulations are clearly communicated.
For foreign investors, clearer regulations may be beneficial by raising professional standards and lessening the risks associated with informal intermediaries. Montenegro’s property market is evolving with increased sophistication due to international developers and large tourism projects entering the arena.
As transaction values escalate, there is a growing rationale for implementing stricter brokerage regulations. The success of this crackdown will hinge on whether enforcement efforts can be maintained beyond initial high-profile inspections.
If authorities manage to transition more intermediaries into formal operations, it could result in enhanced tax compliance, improved consumer protection, and a more transparent real estate market overall.
