Laws relating to the apartment’s rental in the Principality of Monaco

If the majority of the apartments in the Principality is free of law (s), properties built before September 1, 1947 are, with rare exceptions, subject to one of the following two laws:

	Law 887	Law 1235 amended by the law 1291 & 1377
The tenant must be	Parents or children, or their spouse, of the owner or his spouse Monegasque nationals People residing in Monaco for more than 5 years and been in a job in Monaco for more than 6 months People working in Monaco for more than 5	Monegasque nationals People born to of Monegasques parent; the spouses, widowers or widows of Monegasques; people divorced of a Monegasques, fathers or mothers of children born from this union People born in Monaco, who have lived there since birth, provided that one of their parents also resided in Monaco at the time People who have lived in Monaco for at least 40 years without interruption
Rent	Free + usual indexation clause	Supervised by the Rent Arbitration Commission
Lease term	6 years, cancellable annually according to the sole will of the tenant. The owner has a right of repossession for himself and his family	6 years, cancellable within 3 months by the tenant. The owner has a right of repossession for himself and his family
Mandatory rental	No but declaration of vacancy is needed	Yes

These laws generally generate a discount on the purchase price per sam but negatively impact the rental yield.

Lien : Légimonaco