Our useful guide for you and your family
Living in Monaco
The Principality offers a wide range of support services for new residents and settling down to life in Monaco should be a wonderful experience in a beautiful environment with an excellent infrastructure, superb weather, schools, fitness centres, a wide range of cultural activities that include the opera, theatre, film and the arts, and a host of services for children’s (schools and other activities).
In addition to the well-known galas (the Rose Ball in March and the Red Cross Ball in August) there is a rich sporting calendar that starts with the supercar show ‘Top Marques’ in April; is followed by the Monte Carlo Tennis Masters, the Cannes Film Festival in May, the Formula 1 Grand Prix, the International Show Jumping of Monaco and the Yacht Show in September.
Monaco is also constantly vibrant with international conferences, conventions and exhibitions.
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Sharing the benefit of our experience
Caroline Olds Real Estate offers advice and several useful publications on how to benefit from the government initiatives and private services offered to new residents.
We can help with the following: how to obtain a residence permit; buy and register a business; recommendations for good restaurants and schools; introductions to residence clubs and associations; information about concierge services; medical and beauty centres and places to buy English books and beautiful furniture at good prices.
Our objective is to share the benefit of our experience and provide attractive choices for you and your family.
Monaco Property Laws
There are two main laws in Monaco that regulate real estate leases, Law 887 and Law 1291.
The scope of their application is quite restricted. Nevertheless, if you are planning to buy real estate in order to lease it to a third party or you are interested in renting an apartment, it is advisable to understand these laws so that you are aware of your rights and obligations.
The laws concern apartment rentals in certain buildings and does not affect purchases and sales, where the owner intends to occupy the property himself.
Law 887 concerns houses that were built before 1st September 1947. If you buy an apartment in Monaco that is subject to Law 887, you have a right to lease it to the following individuals:
- relatives (or their conjoints) of the owner (or his husband/wife) in the line of ascent or descent;
- citizens of Monaco; individuals residing in Monaco for more than five years and working in Monaco for more than six months;
- individuals working in Monaco for more than five years;
Lease contracts must be concluded for a period of 6 years. They can be terminated at the end of each year, solely at the leaseholder’s initiative. There is no ceiling on the rent paid and it can be fixed at the owners discretion. An additional clause about rent indexation can be included in the lease contract.
Law 1291 refers to houses that were built before 1st September 1947 and states that the rent is regulated and can only be fixed by the Housing Administration, which is authorized to lease this type of property to the following groups of people in the following order of priority:
- citizens of Monaco; individuals, born from Monegasque parents; conjoints, widowers/widows of Monegasque citizens;
- individuals, divorced from Monegasque citizens;
- parents of children, born from that union;
- individuals, born in Monaco and residing in Monaco since birth, providing that one of their parents was a resident in Monaco at the time of their birth. Individuals, meeting all the conditions, but born, by chance or because of medical reasons, as a rule, outside the Principality, may be exempted from the requirement to be born in Monaco;
- individuals, residing in Monaco without interruption not less than forty years;
According to the order of priority, a citizen of Monaco will have an advantage over a person, residing in Monaco for more than 40 years. Thereby, citizens will have a preferential right to lease an apartment. Lease contracts must be concluded for a period of 6 years with the option of termination at the leaseholder’s initiative.
The lessor may give the leaseholder a term that is rent free if any of the following conditions apply:
demolition of an old building in order to construct a new one with the same or superior living space and on the same site; erection of a superstructure in the building; reconstruction of the building for the extension of existing living space; work for improvement of living conditions (hygiene, health) and public safety. In the case where any of the last three conditions apply, the entirety of the premises occupied by the leaseholder will be deemed uninhabitable for the duration of the building works.
In the above mentioned cases, as well as the case whereby the entirety of the premises occupied by the leaseholder is deemed as uninhabitable for the duration of construction work, the regulations of Article 1.564 of Civil Code apply. Moreover, in the case where the building is subject to demolition according to the terms and conditions of existing legislation and regulations or in the case that the building is considered a public health or safety hazard, lease contracts currently in force are liable to termination.
An additional clause about rent indexation can also be included in the lease contract.
Nevertheless, the annual rent cannot exceed the average level of the Consumer Price Index (excluding tobacco goods), as calculated for the entirety of households in France for a period of a year and published by the French State Institute of Statistics and Economic Analysis.