Bill No. 1134 on the protection of the Rock of Monaco

Bill No. 1134 on the protection of the Rock of Monaco (50 articles), received on 6 October 2026 by the Parliament, accompanied by a declaration of urgency from the Minister of State on the basis of Article 21 of Law No. 771 of 25 July 1964 on the organisation and functioning of the National Council and Article 122 of the Rules of Procedure of the Parliament, was referred to the Environment and Quality of Life Committee (CEQV), and voted on 12 October 2026.

Presentation • Purpose of the law

The special law passed (L.) is intended to "provide the Rock with a comprehensive and protective legal framework of its own", in order to maintain “the balance between permanent residence, local shops, cultural activities and its institutional role” (Explanatory Memorandum to Bill No. 1134).

The aim is for the State of Monaco to retain control over the development of the Monaco-Ville district in the face of "concentration of ownership”, the “change in land use” and the “alteration of the character of the built environment” within a “context of pressure from the property and land markets” (ibid.).

The adoption of a law with territorial application limited to the Rock was preferred to amending existing legislation, of which “none meets the protection objective envisaged in its entirety” (ibid.):

• Order-Law No. 674 of 3 November 1959 on town planning, building and roads, as amended, supplemented by implementing regulations, establishes the principle that the “current character” of the Monaco-Ville district “must be preserved” (Article 5). “Town planning legislation governs the act of building; it does not govern either the ownership or the use of premises” (ibid.).
• Law No. 1.235 of 28 December 2000 on the terms and conditions of tenancy for certain residential premises built or completed before 1 September 1947, as amended "protects tenants in the protected sector, but does not prevent the property from changing its legal status and thus leading to a change of use". This law recognises a “right of pre-emption, generally applicable (...) to the State and, secondarily, to the tenant of a property in the protected sector in the event of the sale of that residential property” (Article 38). “This right is limited in scope to flats in the protected sector alone and does not allow the State, through acquisition, to ensure that the ownership and use of the premises remain in accordance with the public interest” (ibid.).
• Law No. 1.144 of 26 July 1991 concerning the conduct of certain economic and legal activities, as amended "makes the carrying out of activities subject to a declaration or administrative authorisation, but assesses the operator as a person and the nature of the activity, not its location or its impact on the character of a neighbourhood" (ibid.).
• Law No. 1.446 of 12 June 2017 on the preservation of the national heritage "provides for the protection of specific elements of immovable cultural heritage and establishes the Heritage Council; it does not provide for the protection of an urban area as such, nor does it confer any right of pre-emption on the State in respect of buildings" (ibid.).
• Law No. 1.329 of 8 January 2007 on the co-ownership of built properties, as amended "leaves it to the owners to determine the conditions of occupation or use of the properties, without the State being able to compel them to take into account the historic character of the neighbourhood in which the property is situated" (ibid.).
• Law No. 502 of 6 April 1949 on expropriation in the public interest, as amended, "allows the State to acquire property by compulsory purchase, but at the cost of a cumbersome procedure, subject to a declaration of public utility, and which is not intended to apply to the ordinary course of property transfers (...) In particular, there is no general right of pre-emption in favour of the State in respect of property in the Monaco-Ville district.” (ibid.).

SUMMARY OF THE LAW

The Law passed "grants the State powers in relation to construction, the use of premises and the disposal of property, in particular through the introduction of a right of pre-emption", in accordance with Article 24 of the Constitution, restrictions on the right to property may only be imposed if they are necessary to achieve the objective of overriding public interest of protecting the Rock and managing its development, for which the State is the guarantor (CEQV Report on Bill No. 1134, Article 1 L):

• Control of disposals (Title I): establishes, for the benefit of the State, a right of pre-emption over disposals for valuable consideration of immovable property, shareholdings conferring control over companies with a predominantly property-based business, business assets and leasehold rights.
• Control of land use (Title II): statement of land use for each premises on the Rock, drawn up by ministerial order; submission of changes to allocations and other transactions for prior authorisation by the Minister of State, and (for the first time in Monegasque law) regulation of short-term furnished lettings on the Rock. The National Council has suggested to the Government that, “in the interests of consistency, [it] should continue its deliberations on extending these regulations to the whole of the territory and on the basis for the tourist contribution provided for under Law No. 1.548 of 6 July 2023" (CEQV Report on Bill No. 1134).
• Building control (Title III): prior authorisation for new buildings, works on existing buildings, demolitions, the division or amalgamation of plots or volumes, or any other land consolidation, and any encroachment on open spaces or features visible from public spaces or from the sea; adoption by Sovereign Order of a specific town planning regulation for the Rock and a set of architectural and heritage specifications identifying, building by building, the elements to be preserved.
• Common, transitional and final provisions (Title IV): right to inspect building sites and premises, right to access documents enabling the actual use of the premises to be established; owner’s right to compensation if the easements and restrictions result in an infringement of acquired rights or impose a special and exorbitant burden that is disproportionate to the public interest objective pursued; obligations of notaries and drafters of deeds; administrative sanctions; criminal penalties; triennial report to the Parliament; transitional provisions; sovereign orders implementing the Law.

* * *

THE LAW IN DETAIL

Article 1 – Purpose

• The overriding public interest objective of protecting the Rock and managing its development cannot be achieved through building regulations alone, and requires the State to have, within the area defined in Article 2 and in accordance with Article 24 of the Constitution (property rights), prerogatives relating jointly to:
  1°) transfers of immovable property, corporate rights and business assets, which determine who holds the premises and for what purposes;
  2°) the use of the premises, which determines the balance between permanent residence, including that of persons with protected status within the meaning of Law No. 1.235 of 28 December 2000, as amended, local shops, crafts and cultural activities;
  3°) construction, demolition and work on existing buildings, which determine the character and substance of the area.

Article 2 – Scope

• Definition of the territorial scope of the Law. "Le Rocher" (The Rock) is understood to mean the Monaco-Ville district, including its ramparts, glacis and cliffs, its gardens and the "chemin des pêcheurs" (fishermen’s path).
  
• Map of the area published by Sovereign Order and made available to the public.
  
• Properties straddling the boundary: subject to the law in their entirety, “so that no land configuration allows for partial exemption” (Explanatory Memorandum to Bill No. 1134).

TITLE I – CONTROL OF DISPOSALS

• "The scarcity of land and the expected return on premises situated on the Rock attract buyers with substantial financial resources, who are likely to acquire a significant number of properties or plots within a few years. These acquisitions may take the form of property sales, the transfer of shares in companies that own the property, or the acquisition of business assets and leasehold rights." (Explanatory Memorandum to Bill No. 1134).
  
• Title I of the Law "enables the State to ascertain who is acquiring property, at what price and for what purposes, and, where justified by one of the specific grounds listed in the Act, to take the place of the prospective purchaser" (ibid.)
  
• "A right of pre-emption is not expropriation: it is exercised only in the event of a sale decided upon by the owner, on the terms set by the owner himself. (...) Where the State intends to acquire the property at a price different from the declared price, the owner may refuse and withdraw their property from sale at any stage of the procedure, without compensation or penalty. No provision [of the law] may have the effect of compelling an owner to sell their property to the State at a price which they have not expressly accepted” (ibid.)

Chapter I – State’s right of pre-emption

Article 3 – Establishment and purposes of the right of pre-emption

1. to preserve, restore or enhance a building or group of buildings of historical, architectural or urban interest; to maintain or restore the use of a premises as a dwelling, in particular as a permanent dwelling;
2. to maintain or set up a local shop, a craft business or a cultural activity falling within the categories set out in Article 27;
3. to provide public facilities or develop public spaces necessary for life on the Rock;
4. to preserve the surroundings of the Prince’s Palace, the Cathedral and the headquarters of the institutions.

Article 4 – Disposals of property situated on the Rock subject to the right of pre-emption

1. voluntary disposals for consideration, in any form whatsoever, of developed or undeveloped land, co-ownership shares, undivided interests or real property rights, including exchange, contribution to a company, a trust, a foundation, a fiducie or any equivalent legal arrangement, and payment in kind.
2. transfers for consideration of shares or equity interests which result in the transferee holding, directly or indirectly, a majority of the share capital or voting rights of a company whose assets consist, for more than half of their value, of the assets referred to abovein point 1.
   - Where the right of pre-emption is exercised in respect of the aforementioned shares or equity interests, any approval clauses stipulated in the articles of association or in any agreement shall not be enforceable against the State.
   - Where the State acquires the aforementioned shares or equity interests by way of pre-emption, each of the other shareholders may, within six months of the acquisition, require the State to acquire their own shares or equity interests at a price per share equal to that paid by the State. "This mechanism, modelled on the right of co-exit frequently provided for in shareholders’ agreements, serves as a counterbalance to the unenforceability of approval clauses". It aims to safeguard the rights of minority shareholders by “granting them the right to exit at the price paid by the State”, and “furthermore, prevents the risk of the company being wound up by the courts due to a dispute between shareholders and reinforces the proportionality of the mechanism, in accordance with Article 24 of the Constitution” (CEQV Report on Bill No. 1134).
   -The provisions of paragraph 2 apply regardless of the location of the company’s registered office and the legislation governing it. Where the company has appointed an authorised representative pursuant to theLaw No. 1,381 of 29 June 2011 on registration fees payable on transfers of immovable property and rights, as amended, the latter shall sign the declaration provided for in Article 6 prior to any transfer falling within the scope of point 2.
3. sales for consideration of business assets, craft business assets and leasehold rights relating to commercial premises.
4. tenders, in accordance with the conditions set out in Article 19.

Gifts inter vivos are not subject to the right of pre-emption. The Government has clarified, with regard to the “risk of circumventing the scheme”, that “a disguised gift, a gift subject to conditions equivalent to a price, or any other transaction concealing a sale, should be regarded as a transfer for valuable consideration within the meaning of Article 4. It would therefore be subject to declaration, on pain of nullity and criminal penalties” (CEQV Report on Bill No. 1134).

Article 5 – Excluded disposals

1. disposals made to the spouse or partner of a cohabitation agreement (CVC), ascendants, descendants and siblings of the transferor, as well as partitions.
2. transfers of funds or leasehold rights granted to the spouse or partner of a cohabitation agreement (CVC), a descendant or an employee who has been working for the firm for more than three years.
3. disposals made to the State, the local authority or a public body.

Chapter II – Declaration of intention to dispose of

Article 6 – Declaration

• Any disposal referred to in Article 4 shall, on pain of nullity under the conditions laid down in Article 24, be subject to a prior declaration (containing the required mandatory details) addressed to the Minister of State (who shall notify the National Council thereof) by the owner or by the notary acting as the executing notary.
  
• The owner may withdraw their declaration as long as the Minister of State has not notified them of his decision to acquire the property at the prices and on the terms declared.

Article 7 – Time to process

• From the date of receipt of the declaration, the Minister of State has one month in which to notify his decision.
  
• Within fifteen days, he may request the owner to provide documents enabling him to assess the composition and condition of the property (a list set out by sovereign order), as well as to arrange a viewing of the property. The one-month time limit is suspended from the date of receipt of this request and resumes upon receipt of the documents, on the date of the viewing or on the date of refusal to allow a viewing.

Article 8 – Decision of the Minister of State

• Within the time limit laid down in Article 7, the Minister of State shall notify the owner or the notary of either:
  1° his decision to waive the right of pre-emption;
  2° his decision to purchase at the price and on the terms stated (stating the reasons);
  3° his offer to purchase at a price he proposes (stating the reasons).
  
• Failure to respond by the deadline shall be deemed a waiver.
  
• The decision to acquire or the offer to acquire is brought to the attention of the prospective acquirer named in the declaration.

Article 9 – Consequences of express or implied waiver

• The owner may dispose of the property at the stated price and on the stated terms within a period of six months, without prejudice to the application of Article 38 of Law No. 1.235 of 28 December 2000, as amended, relating to the right of pre-emption of the leaseholder where the premises in the protected sector whose disposal is being considered are let under the conditions laid down by the said Law.
• New declaration required: once the aforementioned six-month period or the period specified in Article 38 of the aforementioned Act No. 1.235 has elapsed; or if the disposal is envisaged at a lower price, on different terms or in favour of another purchaser, including as a result of a substitution clause, an assignment of the promise or preliminary agreement, or a change in the beneficial owners of the prospective purchaser. “This rule prevents a declaration at a high price, intended to discourage pre-emption, from being followed by a sale at a lower price” (Explanatory Memorandum to Bill No. 1134).

Chapter III – Price determination and right of withdrawal

"This chapter is the one that most directly reflects respect for the Article 24 of the Constitution. It sets out the procedure for determining the price in the event of a disagreement, whilst ensuring that the owner can never be compelled to sell" (Explanatory Memorandum to Bill No. 1134).

Article 10 – Purchase at the stated prices and on the stated terms

• Final sale on the date of notification of the Minister of State’s decision to acquire the property at the prices and on the terms stated in accordance with Article 8 2°.
• Completion of the sale in accordance with the terms and conditions set out in Article 18.

Article 11 – Offer at a price different from the stated price

• The owner has two months in which to either:
  1°) accept the proposed price;
  2°) maintain the declared price and agree that the price be determined in accordance with the procedure set out in Articles 12 and 13;
  3°) withdraw from the sale. Such a withdrawal does not confer any rights on the State in respect of the property, and the owner retains the right to submit a new declaration at a later date.
  Silence constitutes a waiver of alienation, "a solution favourable to the owner, as it does not involve him in any proceedings without his express consent" (Explanatory Memorandum to Bill No. 1134).

Article 12 – Commission de conciliation et d'évaluation (CCE) (Conciliation and Valuation Commission) where the owner has opted for the price to be determined

• Conciliation phase aimed at reaching an agreement without recourse to the courts:
  - The case is referred to the CCE by the party acting first.
  - Adversarial procedure: the CCE hears the parties and their legal advisers, and may order any expert assessment.
  - Within two months, the CCE issues a written and reasoned opinion on the market value of the property, which is not binding on either the parties or the court.
• If the parties reach an agreement following the advice, the sale is finalised on the date of their agreement, as recorded in writing.
• Composition of the CCE: - a chairperson chosen by mutual agreement from among individuals who can be relied upon to be independent, impartial and competent in matters relating to property in Monaco; - one member appointed by the State; - one member appointed by the owner. If no agreement is reached on the name of the chairperson or on the appointment of a member within fifteen days, the matter shall be settled by the President of the Court of First Instance, ruling on application. No member may have, directly or indirectly, any interest in the transaction.

Article 13 – Judicial determination of the price in the absence of an agreement within fifteen days of notification of the CCE’s opinion, or if the CCE has not issued its opinion within the specified time limit

• The State may bring the matter before the Court of First Instance within fifteen days. If no such application is made within that period, the State shall be deemed to have waived its right of pre-emption.
• The Court shall determine the market value of the property as at the date of the declaration provided for in section 6. No account shall be taken of any improvements or changes in use made after the declaration. This “will not, in practice, apply to routine maintenance work carried out on the property” (CQV Report on Bill No. 1134).
  - The Court takes into account the property’s composition, location and condition, its current use and potential uses in accordance with the applicable rules, transactions involving comparable properties on the Monegasque market, any easements, charges and rights encumbering it, its occupancy status and any factor that objectively affects its value.
  - In the case of a business, its market value is also assessed in the light of its size, location, comfort, fittings and operational facilities.
• The amount awarded in the final analysis by the Tribunal may not be less than the market value thus determined, and excludes any incidental compensation. The Tribunal may order any investigative measures and is not bound by the experts’ findings or by the opinion of the CCE.
• The judgement shall be delivered within six months of the case being brought before the Tribunal. It is subject to appeal in accordance with the provisions of ordinary law. The Court of Appeal shall give its ruling within six months of the appeal being lodged.

Article 14 – Owner’s right of withdrawal and State’s waiver of its right of pre-emption

• Once the court decision setting the price has become final, the parties have one month in which to notify their acceptance of the price thus set or their withdrawal from the transfer. The sale is only finalised if both the State and the owner have notified their acceptance within this period. Failure by a party to respond by the expiry of this period shall be deemed to constitute a withdrawal from the transfer on their part.
• If no agreement is reached on the price, the owner may, at any time up to the expiry of the aforementioned one-month period, withdraw their property from sale by notifying the Minister of State. The owner’s withdrawal shall not give rise to any compensation or penalty payable by the owner. In any event, no provision of this Act shall have the effect of compelling an owner to transfer their property to the State at a price other than that declared or which they have not expressly accepted.
• The State may, under the same conditions, waive its right of pre-emption.

Article 15 – Consequences of the State’s waiver of its right of pre-emption

• Withdrawal prior to the court’s determination of the price: the owner may proceed with the sale at the declared price and on the declared terms, subject to the conditions set out in Article 9.
• Waiver following a court-determined price: the State may no longer exercise its right in respect of the same property for a period of two five years from the date of such waiver in relation to the same owner, except to exercise the right of pre-emption at the price and on the terms declared, in accordance with paragraph 2 of Article 8. In such a case, the sale shall be deemed to have been completed in accordance with Article 10.

Article 16 – Consideration other than in cash

• Where the consideration for the declared disposal consists, in whole or in part, of the transfer of an asset or a right (in particular, an exchange or a contribution to a company), the State, which cannot provide the consideration in kind, acquires the property upon payment in cash of the declared value of that consideration.
• In the event of a disagreement regarding this value, it shall be determined in accordance with Articles 11 to 14. The CCE, and subsequently the Court, shall determine the value of each component of the price and, where applicable, the amount of the adjustment payment (a sum intended to compensate for any difference in value in the event of an exchange).

Article 17 – Partial right of pre-emption

• Where the declaration relates to several properties on the Rock, only some of which fall within the scope of Article 3 of this Act: the State shall limit the exercise of its right to that part, with the price taking into account any depreciation of the remainder.
• The owner may, however, require that the State acquire all the properties declared on the Rock, “so as not to be left with a devalued or unsaleable remnant” (CEQV Report on Bill No. 1134).

Chapter IV – Completion of the sale and use of the assets acquired

Article 18 – Notarial deed, payment and lapse

• Supervision of the completion of the sale within a short timeframe: a notarised deed drawn up within three months of the date on which the sale became final; the price paid upon signature or, in the event of any obstacle to payment, deposited within the same timeframe. The owner retains possession of the property until full payment has been made or the deposit has been paid.
• Failure by the State to sign or make payment within this period: the right of pre-emption lapses; the owner regains the right to carry out the transaction as originally planned or to carry it out on different terms, without prejudice to compensation for the loss caused by this delay; the State may no longer exercise its right in respect of the same property for a period of five years in relation to the same owner.

Article 19 – Auctions and collective insolvency proceedings

• Auction, whether voluntary or compulsory: at least one month before the scheduled date, the Minister of State must be notified by the registrar or the notary responsible for the sale; the State has a period of fifteen days from the date of the auction to step in and take the place of the successful bidder, at the price of the final bid or the higher bid (a reasoned decision in accordance with Article 8). The transfer may not take place before the expiry of this period, unless the State expressly waives this right.
• Disposals in the context of collective proceedings for the settlement of liabilities, subject to the judge’s authorisation: before the judge makes a ruling, the administrator must inform the Minister of State of the proposed disposal; the State has a period of fifteen days from the date of the judge’s decision to step in place of the selected transferee, at the price and on the terms set out in that decision (a reasoned decision in accordance with Article 8). The transfer may not be completed before the expiry of this period, unless the State expressly waives this right.

Article 20 – Rights of occupants

• The exercise of the right of pre-emption has no effect on current tenancies and occupancy rights, which are enforceable against the State; “pre-emption cannot be used as a means of evicting occupants” (Explanatory Memorandum to Bill No. 1134).
• The State’s right of pre-emption over property situated within the area defined in Article 2 of this Act takes precedenceover any other right of pre-emption established by the laws currently in force, “which, in particular, governs its relationship with the tenant’s right provided for by Article 38 of Law No. 1.235 of 28 December 2000, as amended and the tenant’s right as provided for in Article 32b of Law No. 490 of 24 December 1948 concerning leases for commercial, industrial or craft purposes, as amended" (Explanatory Memorandum to Bill No. 1134).

Article 21 – Use of property subject to the right of pre-emption and transfer back

• Guarantee that the property acquired under the right of pre-emption will be used in accordance with the purposes of the Law:
  - Use or disposal of the property acquired by right of pre-emption in accordance with the purpose specified in the decision or any other of the purposes listed in Article 3.
  – If, within ten years of the acquisition, the State decides to use or dispose of the property for other purposes, it must first offer to sell the property to the former owner or their universal successors and, in the event of refusal, to the displaced purchaser, at a price not exceeding the price paid by the State plus the cost of any works carried out, and which, in the absence of agreement, shall be determined by the Court of First Instance.
  - Failure to comply with this obligation gives rise to a claim for damages, for which the limitation period is five years.
  - Maintenance of a Public Register of property acquired by right of pre-emption and its use (by the competent authority designated by Sovereign Order), “which enables any person to verify that the State is complying with the objectives of the law” (Explanatory Memorandum to Bill No. 1134).

Article 22 – Funds and commercial leases subject to the right of pre-emption

• Transfer of business assets, craft businesses and pre-empted leasehold rights, within three years, to an operator whose activity falls within the scope of Article 27, following a call for applications published in the Journal de Monaco on the basis of specifications approved by ministerialorder; in the meantime, the purchaser may entrust the operation of these assets to a manager on a discretionary basis; should the assets not be transferred within the specified period, the unsuccessful bidder shall have a right of first refusal.

Article 23 – Costs

• Costs to be borne by the State: the costs of the Conciliation and Valuation Commission (CCE) referred to in Article 12, including the costs of any expert reports it orders and the fees of the advisers, as well as the costs of the deed and, where applicable, the legal costs incurred in the price determination proceedings.

Article 24 – Action for the annulment of a disposal

• Invalidity of: the disposal referred to in Article 4 carried out without the declaration provided for in Article 6, or on the basis of a knowingly inaccurate declaration, or before the expiry of the period provided for in Article 7, or in breach of Article 9; a disposal carried out as part of a transaction or series of transactions, in whatever form, with the aim of preventing the State from exercising its right of pre-emption in accordance with the provisions of Title I, in which case the disposal shall be deemed to have been carried out without the declaration provided for in Article 6.
• Action for annulment brought by the State before the Court of First Instance, subject to a limitation period of five years from the date of publication of the deed of transfer of ownership or, in the absence of publication, from the date on which the State became aware of it.

TITLE II – MONITORING OF ALLOCATIONS

• "Permanent residential properties are at risk of being converted into short-term furnished lettings or tourist accommodation for visitors; food shops and local amenities, which tend to meet residents’ day-to-day needs, are giving way to souvenir shops; and craft workshops are disappearing in favour of more lucrative activities. Each of these changes is now possible without the State having any means of preventing them in the interests of preserving the character of the area" (Explanatory Memorandum to Bill No. 1134).
• The control of land use, governed by Title II, which addresses these concerns, “is based on a legally binding land use register, drawn up on a premises-by-premises basis, on the classification of premises into categories and of retail businesses into classes, and on the requirement for prior authorisation for any change of use or class. A sovereign order shall determine, street by street or block by block, the proportion of premises allocated to each class of activity and designate those ground-floor premises whose commercial use must be maintained.” (ibid.).

Article 25 – Statement of allocations

• List of the designated uses of each premises at Le Rocher: drawn up by the Minister of State within eighteen months of the publication of this Law; laid down by ministerial order and made public; updated whenever there is a change in designated use. “It constitutes the benchmark against which any change in use is assessed.” (Explanatory Memorandum to Bill No. 1134).
• The established use is that resulting from the authorisations granted or, failing that, from the actual and regular use of the premises on the date of publication of this Law, as established by any means.“The reference to actual and regular use makes it possible to recognise historical uses, predating any authorisation requirement, without legitimising irregular uses” (ibid.)
• The draft decision is notified to the owner, who has three months to submit their comments.“As a reminder, the decision to register may be challenged before the Supreme Court in accordance with the conditions laid down in Article 90 of the Constitution.” (ibid.)

Article 26 – Categories of premises

• Classification of premises into six categories:
  1° residential, distinguishing between permanent residence and short-term furnished lettings (“the practice of letting a furnished property intended for residential use, on a repeated basis, for short periods, to temporary guests who do not take up residence there”);
  2° retail and craft businesses;
  3° offices and service activities;
  4° hotel accommodation;
  5° facilities of public interest, places of worship, cultural venues, educational establishments and public services; 6° car parks, garages and cellars.

Article 27 – Schedule of commercial and craft activities

• Six-category classification within the 2nd category "2°retail and crafts businesses":
  a) food shops and local shops meeting residents’ day-to-day needs;
  b) crafts and arts and crafts;
  c) bookshops, art galleries, antique dealers and cultural shops ;
  d) restaurants and drinking establishments;e) shops selling souvenirs and those primarily catering to passing trade;f) other retail businesses and personal services.
• A Sovereign Order sets out the content of the categories and identifies, where appropriate, activities of historical, cultural or heritage interest

Article 28 – Transactions subject to authorisation

• Within the area referred to in Article 2, the following are subject to'prior authorisation from the Minister of State, on the Rock:
  1° any change in the use of premises from one category to another, with or without building works;
  2° the conversion of premises from permanent residence to short-term furnished letting;
  3° any change of activity resulting in a commercial or craft premises being reclassified from one category to another;
  4° the merger or division of commercial or residential premises; 5° the conversion of a ground floor into a car park or garage.
• The following is not subject to authorisation the short-term letting of a furnished property which constitutes the lessor’s main residence, up to a limit of 90 days per calendar year, without prejudice to the terms of the tenancy agreement, the regulations governing the co-ownership of the property and any contrary statutory provisions, in particular the provisions of the Law No. 1,235 of 28 December 2000 on the terms and conditions for the letting of certain residential premises built or completed before 1 September 1947, as well as the Law No. 887 of 25 June 1970 limiting the scope of application of Ordinance-Law No. 669 of 17 September 1959 amending and codifying the legislation relating to the terms and conditions of tenancy of residential premises.

Article 28-1 –Temporary authorisation for short-term lettings of furnished properties

• Temporary, personal and non-transferable authorisation,issued by the Minister of State to a natural or legal person for a period not exceeding three years; not tied to the premises, by way of derogation from Article 31, paragraph 1; does not alter the designated use of the premises, which remains recorded in the register of designated uses as permanent habitation.
• Criteria for the issue of licences laid down by Sovereign Order.

Article 28-2 – Registration of short-term furnished lettings

• Prior notification to the Minister of State for the short-term letting of a furnished property situated on the Rock, including where such letting is exempt from authorisation.
• The registration number issued must be included in all rental offers, regardless of the medium used.

Article 29 – Instruction

• Notification by the Minister of State of the admissibility of the application for authorisation, or of the inadmissibility of the application where the application is incomplete, within five working days of the submission of the application for the authorisation referred to in Articles 28 and 28-1.
• Admissibility of the application: the Minister of State shall decide within two months of the submission of the application, following consultation with the local authority. Failure to respond by the end of this period shall be deemed a rejection.
• Where authorisation is sought at the same time on the basis of Title III : it is possible to conduct a single investigation and issue a single decision.

Article 30 – Grounds for refusal and requirements

• Grounds for refusal (substantiated in law and in fact) or the conditions of the authorisation referred to in Article 28:
  1° the development reduces the number or floor area of premises used for permanent residence (in assessing this ground, account shall be taken of the compensation proposed by the applicant (allocation, on the Rock, of premises previously used for another purpose and of at least equivalent floor area for permanent residence), and, in the case of a merger of dwellings, of the housing needs of the applicant and his or her family) ;
  2° it results in the cessation of an activity of historical, cultural or heritage interest identified by the Sovereign Order provided for in Article 27, or a local shop whose closure would deprive residents of an everyday service;
  3° it is, by virtue of the nuisance or footfall it generates, incompatible with the character of the area, the peace and quiet of residents, or the dignity of the surroundings of the Prince’s Palace and the seats of the institutions.
  "The exhaustive nature of the grounds and the requirement to state reasons provide a framework for the Minister of State’s discretion and enable it to be reviewed by the courts" (Explanatory Memorandum to Bill No. 1134).
• Activity that fails to comply with the rules laid down pursuant to Article 27 (list of commercial and craft activities): authorisation refused, unless an exemption is granted pursuant to Article 31.

Article 31 – Scope of the authorisation and exemptions

• The authorisation attached to the premises lapses if the operation is not carried out within two years.
• The Minister of State may grant an exemption, which may be temporary, from the rules laid down pursuant to Article 27, on legitimate grounds (including, in particular, the applicant’s personal or family circumstances, the condition of the premises, the proven inability to find an operator, economic grounds or technical difficulties). The decision to grant or refuse an exemption must state the reasons.
• "This discretion is necessary to prevent rules of proportion designed for a neighbourhood from having excessive effects in a particular case. The grounds for the derogation itself, and not merely for its refusal, must be stated, because it constitutes an exception to the rule and must be capable of being justified in the eyes of all those subject to it, as is, moreover, required by Law No. 1.312 of 29 June 2006 on the reasoning behind administrative decisions" (Explanatory Memorandum to Bill No. 1134).

Article 32 – Existing situations

• Assignments and activities regularly carried out at the date of publication of this Law: may be continued and transferred without authorisation, provided they are not altered.
• Commercial or craft premises that have remained unused for more than two years: recommissioning in a category other than category (a), (b) or (c) referred to in Article 27 (local retail, craft trades or cultural businesses) is subject to the authorisation provided for in Article 28, “so that prolonged vacancy does not become a means of changing catégory without scrutiny” (Explanatory Memorandum to Bill No. 1134).

Article 33 – Relationship with other legislation

• Granting of the authorisation provided for in this Title II shall be without prejudice to the declaration and theadministrative authorisation required by the Law No. 1.144 of 26 July 1991 on the conduct of certain economic and legal activities, as amended. In the case of premises situated on the Rock, this declaration is only admissible and this authorisation may only be granted if it is demonstrated that the activity complies with the designated use of the premises in accordance with the provisions of this Law.
• Lease clause or tenancy agreement deemed not to have been entered into: permitting a use or activity that is not in accordance with this Law.
• It is specified that the refusal to grant authorisation does not, in itself, give rise to a right to terminate the tenancy on the landlord’s account, “so that the new law does not become a source of tenancy disputes” (Explanatory Memorandum to Bill No. 1134)..

TITLE III – MONITORING OF CONSTRUCTION

• To prevent the character of the built environment from being compromised, this special Law aims to “provide a new foundation for protection rules in the field of town planning, in addition to those already in force” (Explanatory Memorandum to Bill No. 1134).
• Thus, Title III “provides for prior authorisation for works on existing buildings, demolitions, the division or amalgamation of plots or volumes, or any other land consolidation, and for any encroachment on open spaces or structures visible from public spaces or from the sea. It provides for the adoption, by Sovereign Order, of specific town planning regulations for the Rock and a set of architectural and heritage guidelines identifying, building by building, the elements to be preserved” (ibid.).

Article 34 – Required authorisations

• Operations on the Rock are subject toprior authorisation from the Minister of State, without prejudice to the Ordinance-Law No. 674 of 3 November 1959, concerning town planning, building and roads, as amended, and the regulations adopted for its implementation, which shall remain applicable in all respects not contrary to this Law:
  1° any new building, extension or addition;
  2° any demolition, whether total or partial;
  3° works on existing buildings referred to in Article 35;
  4° any division or amalgamation of plots or volumes, or any other land consolidation;
  5° any land clearing, any tree felling and any alteration to gardens, terraces, retaining walls, ramparts and the surfaces of open spaces;
  6° the installation or alteration of shop fronts, signs, awnings, lighting, terraces, commercial fittings, promotional display units and technical equipment visible from public spaces or from the sea.
• A single instruction and a single decision where the transaction is also subject to authorisation pursuant to the aforementioned Ordinance-Law No. 674.

Article 35 – Work on existing buildings

• The following are subject to authorisation:
  - Works that affect the external appearance of a building, in particular its façades, roofs, joinery, ironwork and colour schemes,
  - Work affecting its structure, communal areas, staircases, vaulted cellars, floors or interior décor where these are specified in the specifications set out in Article 38.
• The following are subject to a simple prior declaration (conditions laid down by Sovereign Ordinance):
  - Routine maintenance work that does not alter either the appearance or the materials.

Article 36 – Demolition

• Demolition may only be authorised in two circumstances:
  - if the building is devoid of historical, architectural or urban interest and its demolition does not adversely affect the wider context in which it is situated;
  - if the building is in a state of disrepair and cannot be preserved at a cost that is not manifestly out of proportion to its value.
• A demolition permit may be subject to: the reconstruction to the same dimensions, the preservationor the reuse of identified features, and the retention of the uses recorded.

Article 37 – Subdivisions, land clearance

• Authorisation for the operations referred to in points 4 and 5 of Article 34 (subdivision, consolidation of plots or volumes, or any other form of land consolidation, land clearing and alterations to open spaces) is subject to compliance with the historical plot layout, the pattern of open spaces and the plantingsidentified in the specifications.
  "The plot layout of Le Rocher, inherited from the medieval town, is one of the most characteristic features of its urban form; its protection prohibits land consolidation that would result in the creation of land parcels out of step with the scale of the neighbourhood" (Explanatory Memorandum to Bill No. 1134).

Article 38 – Specific regulations and specifications

• Adoption of the Règlement particulier d'urbanisme du Rocher (special town planning regulations for The Rock) by Sovereign Order, issued following the advice of the advisory committee provided for by the Ordinance-Law No. 674 of 3 November 1959 concerning town planning, building and roads, the Heritage Council established by Law No. 1.446 of 12 June 2017, and the Commune.
• Appended architectural and heritage specifications: identifies, on a building-by-building basis, the features that are to be preserved, restored or altered; sets out the rules regarding materials, colours, shop fronts and signs.
• Draft set of specifications is made available to the public for a period of three days from the date of the first publication in the Journal de Monaco announcing that it has been made available. Each owner is thus informed of the requirements specific to their property and may submit comments.
• Regulations and specifications applicable to applications submitted after their publication. They do not affect authorisations issued previously.

Article 39 – Investigation and decision

• Applications processed in accordance with the procedures and time limits laid down by Ordinance-Law No. 674 of 3 November 1959 on town planning, building and roads, and the legislation implementing it.
• Grounds for refusal or conditions attached to the authorisation: based on this Law, the specific regulations, the specifications or the general rules on town planning, safety and public health. Reasons must be given for any refusal or conditions imposed.

Article 40 – Stay of proceedings

• During the transitional period prior to the publication of the specific regulations and the specifications, and for a maximum of two years: the power to defer a decision, by means of a reasoned decision, on applications likely to compromise the application of the rules currently being drawn up. The deferral may not exceed one year for any single application.
  "This provision, which is standard practice in town planning, prevents the period during which the rules are being drawn up from being exploited to carry out projects that the rules would otherwise have prohibited" (Explanatory Memorandum to Bill No. 1134).

Article 41 – State support

• Requirements imposed pursuant to this Title III which, in the case of conservation or restoration work, result in additional costs compared with ordinary work of the same kind: the State shall bear all or part of these additional costs (conditions, limits and procedures laid down by Sovereign Order).
  "This contribution is fair compensation for the financial burdens imposed on property owners" (Explanatory Memorandum to Bill No. 1134).

Article 42 – Suspension of works and restoration

• Suspension of works carried out without authorisation or in breach of such authorisation may be ordered by the Minister of State.
• If a formal notice has been issued to no avail, he may order the restoration of the premises to their original condition and, if this is not carried out within the specified time limit, have the work carried out ex officio at the offender’s expense.

TITLE IV – COMMON, TRANSITIONAL AND FINAL PROVISIONS

Article 42-1 – Visits and right of access

• Monitoring compliance with Titles II and III:
  – inspections of building sites and premises: with the occupier’s consent or, failing that, with the authorisation of the President of the Court of First Instance, granted by a reasoned order following an application by the Minister of State; between 6.00 am and 9.00 pm, in the presence of the occupier or, in their absence, two witnesses; a report shall be drawn up, a copy of which shall be provided to the occupier and the owner.
• Provision of any document enabling the actual use of the premises to be established, in particular leases, tenancy agreements and booking records: the Minister of State may request the owner, the occupier or any person involved in the letting of premises at Le Rocher to provide any such document; documents must be provided within one month, subject to professional confidentiality.

Article 43 – Statement of reasons, adversarial procedure and appeals

• Reasons and notificationof adverse decisions taken pursuant to this Act shall be accompanied by reasons and notified, as shall the exemptions provided for in Article 31.
• Appeals to the Supreme Court in accordance with the provisions of Article 90 of the Constitution: unfavourable decisions and the aforementioned exemptions.
• Proceedings before the Court of First Instance sitting in the first instance: disputes relating to price, the invalidity of disposals, restitution and compensation which fall within the jurisdiction of the ordinary courts.
• In the event of force majeure, the time limits imposed on owners by this Law shall not run.

Article 44 – Compensation

• In principle, easements and restrictions arising from Titles II and III do not, in principle, give rise to a right to compensation.
• Safeguard clause: compensation payable by the State where this results, for a landowner or operator, in a breach of acquired rights or a special and exorbitant burden, disproportionate to the public interest objective pursued. This “ensures that the provision complies with Article 24 of the Constitution in exceptional cases where the restriction would amount to a deprivation for the person subject to it” (Explanatory Memorandum to Bill No. 1134).
• The claim is brought before the Court of First Instance, court of ordinary jurisdiction, and is subject to a limitation period of five years from the date of service of the decision giving rise to the loss.

Article 45 – Obligations of notaries and drafters of deeds

• No deed recording a disposal as referred to in Article 4 may be accepted or drawn up unless it is supported by evidence of the State’s waiver, whether express or implied.
• The deed specifies the use of the premises as set out in the schedule of uses, “which ensures that the purchaser is informed and that the uses are made public” (Explanatory Memorandum to Bill No. 1134).

Article 46 – Administrative penalties for non-compliance with Articles 28, 28-1, 28-2, 34 or 35

• Administrative fine of up to 100,000 euros, proportionate to the seriousness of the breach, the benefit derived from it and the circumstances of the person concerned.
• The formal notice to restore the property to its previous use or condition may be accompanied by a penalty payment of up to 1,000 euros per day of delay.
• Safeguards attached to the imposition of sanctions:
  – Prior written notification to the person concerned of the alleged facts, the charges brought and the sanction incurred.
  – Period of at least one month to submit written representations.
  – Hearing upon request.
  – Assistance or representation by a person of their choice.
  - Access to all documents in the file and the right to obtain copies thereof.
  - Prohibition on basing the sanction on a document that has not been disclosed.
  - Reasoned decision, served on the person concerned, setting out the avenues and time limits for appeal.
  - Where the same facts give rise to both an administrative fine and a criminal fine, the combined amount of the fines imposed may not exceed the higher of the two maximum amounts applicable.
  "These safeguards meet the requirements of a fair trial, to which the field of administrative sanctions is now subject" (Explanatory Memorandum to Bill No. 1134).

Article 47 – Criminal penalties

• Any person shall be liable to a fine of between 18,000 and 90,000 euros, any person who:
  1° carries out a disposal as referred to in Article 4 without the declaration required under Article 6, or submits a declaration that is knowingly inaccurate as to the price, the identity of the purchaser or its beneficial owners;
  2° carries out works or proceeds with demolition in contravention of Articles 34 to 36;
  3° obstructs the carrying out of the inspections provided for in Article 42-1.
• The court may order the restoration of the premises at the convicted person’s expense.
• In the case of demolition without a permit, the fine may be set at the value of the building that has been demolished.

Article 48 – Report to the Parliament (Conseil National)

• Contents of the report submitted every three years by the Government to the National Council. In particular:
  1° the number of declarations of intent to sell, pre-emptive rights exercised and price-setting procedures; 2° the differences between the declared prices, the prices proposed by the State and the prices finally set; 3° the number of instances where the State has waived its right and the number of withdrawals by the owner;
  4° trends in the number and value of property transactions on the Rock;
  5° the time elapsed between the declaration of intent to sell and the completion of the sale;
  6° trends in property values on the Rock by type of use;
  7° the number of applications for changes of use, authorisations, refusals and exemptions;
  8° trends in the number and duration of vacancies in commercial and residential premises;
  9° the number of authorised and declared short-term lettings;
  10° the number of applications for demolition, reconstruction or conversion and, for each of these, the number of approvals or rejections;
  11° the amount of expenditure incurred by the State under Articles 41 and 44.
• In particular, he appreciates the impact of this Law on the preservation of the Rock, its status as a residential area, its commercial diversity and developments in its property market.
• Where appropriate, it sets out any proposal for adjustments necessary to prevent manifestly disproportionate effects.

Article 49 – Transitional provisions

• Title I shall not apply todisposals which, prior to the publication of this Law, were the subject of a promise or preliminary agreement that has acquired a definite date, provided that they are carried out between the parties at the price and on the terms stipulated therein.
• Application of Titles II and III to applications submitted after the publication of this Law. Authorisations issued previously shall remain valid for the duration of their validity.
• Until the allocation schedule provided for in Article 25 has been drawn up, the allocation of premises may be carried out by any means.
• Short-term furnished lettings in force on the date of publication of this Law shall, within six months of that date, be subject to the declaration provided for in Article 28-2.
  Notwithstanding the first paragraph of Article 32, such tenancies may only be continued beyond a period of one year from that date if they are exempt from authorisation or have been authorised pursuant to Articles 28 or 28-1.

Article 50 – Implementing provisions

• The detailed rules for the implementation of this Act, laid down by sovereign orders, including: the form and content of declarations and applications; the list of documents referred to in Articles 7 and 29; the functioning of the Commission (CCE) provided for in Article 12; and the index referred to in Article 15.