Property and construction law

The real estate sector holds an important place in the Principality and there is a great demand for property. The attractiveness of Monaco and its limited area are two important factors that define the characteristics of the sector.

There are a large number of property developments and construction projects are constantly expanding, including the 6-hectare offshore extension .

Because of the small size of the area and the specific geological constraints, these projects are highly technical. In this context, a good knowledge of the regulatory constraints and geotechnical difficulties is essential.

The town planning and building regulations applicable in Monaco are defined by Ordinance-Law no. 674 of 3 November 1959 concerning town planning, construction and roads, which requires prior authorisation from the Government for construction, demolition, alterations to the interior or exterior fittings of a building, earthworks or other works, as well as by Sovereign Order no. 4. 482 of 13 September 2013 on the demarcation and town planning regulations for the area of the ordered districts (La Condamine, Fontvieille, Jardin Exotique, Larvotto, Moneghetti, Monte-Carlo, La Rousse) which defines the provisions applicable to the entire area of the said ordered districts (zoning plan for the area of the ordered districts setting out the boundaries of the zones of each of the ordered districts and, where applicable, the subdivision of these zones into blocks ; plan showing the distribution of reference building indices; special provisions and corresponding coordination plans applicable to each of the districts).

Law no. 1.446 of 12 June 2017 on the preservation of the national heritage amended the aforementioned Ordinance-Law no. 674 of 3 November 1959, providing that in the event of demolition of outstanding built features and alteration of outstanding landscape features (insalubrity, serious disorder or disaster, development operation within the perimeter of which the building is included), the owner may be required to rebuild.

In addition, Law no. 1.441 of 5 December 2016 on the accessibility of the built environment stipulates that establishments open to the public, buildings used for industrial or office purposes, collective buildings used for residential purposes, temporary constructions and installations, as well as car parks and the outdoor spaces serving them, must be accessible to people with disabilities. Buildings constructed or completed before 1 September 1947 (except for establishments open to the public) and individual buildings used for residential purposes do not have to be made accessible.

Nor should the requirements of the Environmental Code created by Law no. 1.456 of 12 December 2017 be overlooked, for example in terms of declarations or applications for planning permission and the energy performance of buildings.

Monaco's system of co-ownership of built-up properties is governed by Law no. 1.329 of 8 January 2007, as amended.

With regard to the rental sector, contrary to France, fewer laws are applicable. This allows, in principle, a significant contractual freedom for the assets of the so-called « free sector ».

By contrast, owners of properties in the protected sector must bear some legal constraints. Flats in buildings constructed before 1 September 1947 are governed by Law no. 1.235 of 28 December 2000 (modified by Law no.1.291 of 21 December 2004) and therefore, the contractual freedom of their owners is significantly diminished.

With regard to leases, the office lease created by Law no. 1.433 of 8 November 2016, which covers the lease of premises used for intellectual and administrative activities, is unique to Monaco. Its regime is autonomous in relation to other Monegasque leases (commercial, industrial or craft lease, rental lease for dwellings in the protected sector or for other dwellings governed by ordinary law).

• Law no. 1.490 of 23 June 2020 revised the rules governing the domiciliation of a professional activity in residential premises owned by the State.
• Law no. 1.508 of 2 August 2021 relating to the preservation and reconstruction of residential premises covered by the provisions of law no. 1.235 of 28 December 2000 relating to the rental conditions for certain residential premises built or completed before 1 September 1947 has 1) redefined the persons protected (Monegasques and persons with a special link to the Principality) under Law no. 1.235; 2) opened up the possibility for tenants to partially assign residential premises subject to Law no. 1.235 to the exercise of a commercial activity; 3) set the conditions for issuing authorisations to demolish and rebuild when one or more residential premises subject to the provisions of Law no. 1. 235 are subject to complete demolition work; 4) laid down two schemes for rehousing evicted tenants, one to be paid for by the State in the case of complete demolition work, and the other to be paid for by the landlord in the case of work other than complete demolition. In 2022, the Supreme Court annulled the provisions of Law no. 1.508 concerning authorisation to demolish and rebuild in the event of full demolition works, on the grounds that they infringed property rights excessively.
• Law no. 1.507 of 5 July 2021 created the rent compensation allowance, a subsidy paid for by the State, enabling small landlords to obtain rental income equivalent to that of landlords charging the highest rents in the protected sector, which mainly concern refurbished premises.
• Law no. 1.531 of 29 July 2022 amending Law no. 1.329 of 8 January 2007 modernised the status of co-ownership of built-up properties in order to address practical difficulties in terms of organisation and administration.
• From 1 October 2023, increase in the amount of proportional duties (transfer of property and property rights), exemption from only half of the registration duties applicable to property transactions subject to VAT.
• Law no. 1.560 of 2 July 2024 independently regulated the activity of property dealers and overhauled the tax benefits available to them, subject to certain conditions.
• Law no. 1.561 of 2 July 2024 creates a right to be forgotten (loan insurance) and other measures to facilitate access to credit for certain business loans and property loans for people with an aggravated health risk.

• Parliamentary draft law No. 271, adopted on 2 October 2025, aims to reform Law No. 1.252 of 12 July 2002 on the conditions for carrying out activities relating to certain transactions involving real estate and business assets, amended to raise the standards applicable to professionals in the real estate sector (new requirements for administrative authorisation, professional licence, compulsory training, commercial advertising, etc.).
• Parliamentary draft law no. 265 adopted on 28 november 2024 establishes a framework for coordinating the forward-looking policy already put in place by the State in a collaborative approach, by giving it a legal planning document: the Master Development Plan (SDD).
• The legislator plans to introduce a ten-year guarantee insurance requirement for the main players in the construction industry (draft law no. 268).