Understanding Real Estate Laws in Monaco: A Comprehensive Guide

The Principality of Monaco has a unique real estate market, which is heavily regulated by various laws to manage housing access and protect its residents. Among these regulations, Laws 1235, 1291, and 887 play a crucial role in governing rentals and sales of older properties in Monaco. These laws primarily aim to ensure housing availability for Monegasques and long-term residents while maintaining a balance between social protection and real estate investment.

1. The Regulated Housing Sector in Monaco

In Monaco, the real estate market is divided into three main categories:

• The free sector: Includes properties that are not subject to specific regulations.
• The state-owned sector: Comprises government-owned housing reserved for Monegasque citizens under specific conditions.
• The regulated sector: Consists of older properties built before September 1, 1947, which are subject to special laws to protect tenants and preserve housing access for long-term residents.
  

The regulated sector includes two main rental systems:

• The protected sector (governed by Law 1235, modified by Law 1291), which enforces rent caps and strict tenant eligibility criteria.
• The liberalized sector (governed by Law 887), which offers more flexibility to landlords regarding rent setting but with some restrictions on tenant selection.
  

2. Law 1235/1291: Ensuring Housing for Monegasques

Law 1235, adopted in 2000 and modified by Law 1291 in 2004, is a key regulation in the protected sector. It aims to guarantee affordable housing for Monegasques and long-term residents.

Who Can Rent a Property Under Law 1235?

Only specific categories of individuals can become tenants under this law:

• Monegasque citizens
• Individuals born to at least one Monegasque parent
• Spouses, widows, or widowers of Monegasques
• Residents who have lived in Monaco for at least 40 consecutive years
• Individuals born in Monaco and residing there since birth
  

Rental Conditions

• Rents are controlled by the Housing Department and cannot be freely determined by landlords.
• Leases have a mandatory duration of six years, automatically renewable.
• The tenant can terminate the contract at any time with three months' notice.
• The landlord can only terminate the lease under specific conditions (e.g., if they wish to occupy the property themselves or for an immediate family member).
  

3. Law 887: A Liberalized but Regulated Market

Law 887, enacted in 1970, provides greater flexibility for landlords while still maintaining certain protections for Monegasque tenants and long-term residents.

Which Properties Fall Under Law 887?

This law applies only to buildings constructed before September 1947 that are not already covered by Law 1235.

Who Can Rent a Property Under Law 887?

Properties governed by this law can only be rented to certain categories of tenants:

• Monegasques
• Residents who have lived in Monaco for over five years and have been employed there for at least six months
• Workers who have been employed in Monaco for more than five years
• Immediate family members of the property owner
  

Rental Conditions

• Lease duration: a minimum of six years, renewable.
• Rent setting: Unlike Law 1235, rent can be freely determined between the landlord and tenant.
• Termination rights: Tenants can terminate the lease after one year with three months' notice.
• Right of first refusal: If the property is sold, the Monegasque government has a preemption right, followed by the current tenant.
  

4. BENJAMINPRATT’s Expertise: Your Real Estate Partner in Monaco

Navigating the Monegasque real estate market can be complex, particularly due to the numerous regulations in place. This is where BENJAMINPRATT stands out as a leading real estate expert in Monaco.

Why Choose BENJAMINPRATT?

✔️ In-depth expertise in Laws 1235, 1291, and 887, ensuring a precise understanding of opportunities and restrictions for buyers and investors.


✔️ Personalized support to help you find the ideal property, whether for investment or as a primary residence.


✔️ Efficient handling of administrative procedures, including mandatory declarations to the Housing Department and legal compliance.


✔️ Exclusive access to unique properties, in prime locations such as Monte-Carlo, La Condamine, and Le Rocher.


✔️ Strategic real estate investment advice, maximizing profitability while adhering to Monaco’s regulatory framework.

Whether you are looking to buy, sell, or rent, BENJAMINPRATT is your trusted partner for securing and optimizing your real estate project in Monaco.

5. Conclusion: A Unique Market That Requires Expertise

Monaco’s real estate regulations are designed to protect tenants while ensuring market stability.

• Law 1235/1291 imposes strict rules, with regulated rents and strong tenant protection measures for Monegasques.
• Law 887 offers more flexibility to landlords while maintaining certain restrictions on tenant selection.

Buying a property under these laws can present an excellent opportunity for investors or residents seeking historic properties at a more accessible price.

Thanks to the expertise of BENJAMINPRATT, navigating Monaco’s real estate market becomes seamless and secure. Our team is ready to assist you with all your real estate needs in Monaco.