The Union of Municipalities of Montenegro prepared the Model Decision on the Fee for Urban Remediation, a document intended to serve local self-governments as a practical instrument for the consistent implementation of the Law on the Legalization of Illegal Buildings. The new law, which has been in force since 14 August 2025, stipulates that the fee for urban remediation constitutes a dedicated source of municipal revenue, while local self-governments are required to define in detail the amount, conditions, method, and deadlines for its payment. For this reason, the prepared model is particularly important as a framework that enables municipalities to adopt their own regulations more quickly and efficiently, while avoiding legal uncertainties and ensuring a uniform practice throughout the country.
The Model Decision precisely defines who is obliged to pay the fee, under which conditions, and on the basis of which parameters the fee is determined. The right and obligation to pay the fee apply to owners of illegal buildings who have initiated the legalization procedure and fulfilled the requirements regarding property and legal status, registration of the building in the cadastre, a certified as-built design report, and other criteria in accordance with the law. In this way, it is ensured that the fee is paid exclusively for buildings that may be subject to legalization, thereby introducing clear order into the procedure and avoiding arbitrariness in the implementation of the law.
The Model Decision also provides for the possibility of reducing the fee for certain categories of the population requiring greater protection in the legalization process, including households using the building as their primary residence, families with children with developmental disabilities, persons with disabilities, single parents, young people who were without parental care, and members of the Roma and Egyptian communities. A discount may also be granted in cases of one-time payment of the fee. Through these solutions, an effort is made to achieve a balance between fiscal responsibility and social sensitivity, while at the same time encouraging faster and more efficient fulfilment of obligations by owners of illegal buildings.
Special attention has been given to the method and deadlines for payment. Property owners are allowed to pay the fee in a lump sum or in equal monthly instalments, which may be spread over a period of up to 360 months for primary residential buildings. This makes the procedure more accessible to a wide range of citizens. When applying for payment in instalments, owners are required to provide security instruments, such as a mortgage or a bank guarantee, thereby safeguarding the fiscal stability of local budgets.
The Model clearly defines that the funds collected through the fee will be directed towards urban remediation measures — including the reconstruction and development of municipal infrastructure, the rehabilitation of degraded areas, and the overall improvement of spatial quality. The pace of these activities will depend on the amount of funds collected, and municipalities are therefore expected to determine priorities and timelines for the development of specific zones through separate program documentation.
The implementation of this Model will contribute to the establishment of uniform standards in the legalization process throughout the country, reduce the administrative burden on local governments, and accelerate decision-making processes of great importance for citizens and local development. The document is expected to encourage an increase in the number of legalized buildings, ensure a more stable inflow of funds into municipal budgets, and create a more orderly spatial environment, particularly in settlements that have for years been affected by unplanned construction.
“Model_Decision_fee_for_urban_remediation_november_2025.pdf”
