Comprehensive Guide to Mixed-Use Apartments in Monaco

You’re looking to live in Monaco while also basing your professional activity there? The mixed-use regime allows you to combine housing and work within the same apartment, subject to conditions set by urban planning and co-ownership regulations. This complete guide explains the rules you need to know, the steps to follow, and the pitfalls to avoid to legally use a mixed-use property in the Principality.

In Monaco, where space is scarce and regulations are strict, mixed-use apartments are increasingly attractive to entrepreneurs, liberal professionals, and residents who want to balance private life and work. Yet, this term is often misunderstood or misused. This guide will give you a clear, concrete, and up-to-date understanding of what mixed-use really entails in the Principality.

What Is Mixed-Use in Monaco? (Definition)

A mixed-use apartment is a dwelling that can serve both as a residence and as a place for professional activity. Our agency offers a wide selection of apartments for sale that allow mixed-use, and we can highlight these during your visits. In addition to its function as living space, all or part of the property can be used for an authorized professional activity. In other words, the occupant can live and work there simultaneously, provided they comply with Monaco’s specific conditions. Officially, a building is considered mixed-use when it houses both residential units and professional premises. A mixed-use apartment thus lets you set up your home office while preserving the property’s residential status.

Monégasque Urban Planning and Co-Ownership Regulations: A Specific Framework

In Monaco, each building is designated for a specific purpose (residential, mixed-use, commercial, etc.), as determined by the urban planning plan and the building’s co-ownership regulations. The landlord and tenant must adhere to the intended use of the leased premises as defined by these rules. Practically speaking, a residential-classified apartment cannot be rented or occupied as an office without proper authorization. If a building is exclusively residential, a standard residential lease does not permit any office activity—unless a mixed-use lease is explicitly agreed upon and the building allows it.

💡 In Practice: Before considering mixed-use, you must verify that the building permits it. Our agency is in contact with all co-ownerships in the Principality and can assist you with this. Many high-end Monaco buildings are strictly residential and prohibit any professional activity in the units (including practicing a liberal profession or registering a company). Conversely, certain buildings (often in traditional or business districts like La Condamine, Fontvieille, or Saint-Roman) are designed for mixed-use and specify this in their regulations. Therefore, it’s essential to review the building’s co-ownership regulations and, if necessary, check with the Urban Planning Department or the building’s property manager to know the permitted uses.

Mixed-Use, Exclusively Commercial Use, and Simple Domiciliation: What’s the Difference?

Monaco distinguishes three concepts related to the use of premises:

• Mixed-Use Apartment: The property’s primary function remains residential, but the occupant (owner or tenant) is allowed to conduct a professional activity there as a secondary use. This generally involves establishing a registered office or an administrative office while actually residing there. However, certain restrictions apply: for instance, the professional must not receive clients on-site or store goods (more details below). Mixed-use is often chosen by sole proprietors or executives who work from home without staff or public reception.

• Premises for Exclusive Commercial/Professional Use: These are offices, retail spaces, or workshops with no residential component. Such premises are subject to Monaco’s commercial lease rules (Law No. 490 of 24/11/1948) and follow specific regulations (a minimum nine-year term, right to lease renewal or eviction compensation, etc.). A residential apartment can only be converted into a purely commercial premises after a formal change-of-use procedure approved by the Administration. If a commercial, industrial, or artisanal activity is conducted within an apartment, in principle it must switch to a commercial lease under the 1948 law. Note that a commercial premises may welcome the public, employ staff, and display signage, which fundamentally distinguishes it from mixed-use.

• Simple Domiciliation (Registered Office Address Only): This involves using an address (often one’s home or a business center) solely as the company’s registered office or administrative address, without conducting actual activity on-site. In Monaco, the law permits domiciliation at home under certain conditions (see the domiciliation section) or through a domiciliation/business center. Simple domiciliation means that the address is used for the commercial registry and mail reception, but day-to-day work, client meetings, and storage happen elsewhere. This solution is common for newly formed companies or businesses without commercial premises; it offers temporary flexibility but remains heavily regulated.

In summary, mixed-use strikes a balance between pure residential and pure commercial premises. It permits limited professional activity without commercial visibility within the home. If the activity grows (hiring staff, welcoming clients, storing products, etc.), one must then consider a 100% commercial premises under commercial lease regulations or domiciliation in a business center, since it exceeds the authorized scope of mixed-use.

Applicable Urban Planning Rules and the Role of the Urban Planning Department

The Monégasque Urban Code strictly governs the purpose of premises. Any change in a property’s designation (for example, converting a residential apartment into a professional office or vice versa) requires prior administrative approval. The Department of Prospective, Urban Planning, and Mobility—commonly referred to as the Urban Planning Department—is the authority responsible for processing these requests. If you have doubts about the possibility of mixed-use, it’s advisable to contact them to verify that your project aligns with the Urban Plan.

Certain professional activities can only operate at specific addresses or under certain conditions. For instance, setting up a medical practice, a law office, or a shop in a given building implies that the “liberal or commercial professional” subdesignation is permitted by the city plan. The Urban Planning Department also monitors the balance between housing and office space in the Principality. In this context, obtaining mixed-use classification for a dwelling may require a specific procedure and government approval. Indeed, as noted in a local guide, some properties in districts like Condamine or Saint-Roman can gain mixed-use status only with the agreement of the relevant local authorities.

Can You Welcome Clients in a Mixed-Use Apartment?

No, hosting clients or the public in a residence designated for mixed-use is prohibited. Monaco’s law on professional domiciliation is very clear: when a space is officially classified as residential (even with mixed-use authorization), the activity conducted there must not involve receiving clients on-site. Similarly, storing or displaying goods is forbidden to prevent converting the space into a warehouse or shop. These restrictions ensure the building’s tranquility and avoid nuisances for neighbors.

Under mixed-use, the dwelling primarily serves as an administrative office or “closed-door” workspace. In practice, this means no client foot traffic is permitted, nor any prominent commercial signage (no shop fronts or visible business signs on the façade, for example). If the professional activity requires regular client interactions (consultations, sales, etc.), a suitable commercial premises must be rented elsewhere.

Moreover, the law prohibits hiring employees in a mixed-use home. The professional must work alone or possibly with family members residing there. The idea is to preserve the “private” and residential nature of the dwelling. Any commercial-like operation (public reception, staff, significant stock, noise or odor nuisances) exceeds the tolerated mixed-use framework and would be considered a violation of urban planning and co-ownership regulations.

Summary of Mixed-Use Restrictions:

• No client or patient reception on-site

• No storage or display of merchandise in the premises

• No employees (no salaried staff working in the apartment)

• No excessive nuisances caused by the activity (noise, traffic, odors)

• Compliance with the building’s co-ownership regulations (some co-ownerships may further restrict authorized professions, or even forbid any exterior signage or mention).

These rules make mixed-use a discreet and limited arrangement. The apartment must not function as a commercial space open to the public. If these rules are breached, the tenant faces penalties: revocation of the domiciliation authorization, a formal notice to cease the illicit activity, or even lease termination by the landlord for failing to respect the property’s designated use.

Domiciling a Business at Home: Duration and Conditions in Monaco

It is possible to domicile a company’s headquarters or activity at one’s personal address in Monaco, but strict conditions apply. First, no law or contractual clause must prohibit it (as mentioned, the lease must be mixed-use, and the building’s regulations must allow professional use). Next, the limits already discussed must be respected: no clients, no stock, no employees, etc. If these conditions are met, the Principality permits domiciliation at the entrepreneur’s home, albeit sometimes temporarily.

The rules vary depending on the type of business:

• Commercial Companies (S.A.R.L., S.N.C., S.C.S., etc.): Law No. 1.331 stipulates that establishing the registered office at the manager’s home is allowed only at the start of the activity and for a limited duration of one year, renewable once. This means that after a maximum of two years, the company must move its headquarters to a purely professional premises (or a business center). This limitation aims to encourage companies to integrate into a professional environment once they are up and running. Exception: If the company is created and managed by a Monégasque national (or their spouse), authorities may allow domiciliation at home indefinitely, especially for state-owned housing (domanial housing). However, once foreign partners hold shares, the strict 1+1-year rule applies.

• Individuals and Liberal Professions: For sole proprietorships and liberal professions not requiring special authorization, regulations do not limit the duration of domiciliation at home. The personal address can serve as the registered office for as long as desired, provided the lease remains valid and the entrepreneur occupies the premises. In other words, the duration of domiciliation coincides with the duration of the residential lease. Many consultants, service providers, or independent workers operate from home indefinitely, as their modest activity fits within permanent mixed-use (still without clients or employees on-site).

Additional Conditions: The resident domiciliating a business must hold the lease (or own the property), or be the spouse of the leaseholder, or be officially hosted by them. You cannot domicile a business at a friend’s place or in a property where you have no formal rights. Moreover, Monaco limits the number of businesses that can be domiciled at the same address: no more than three companies per household. This measure prevents a single address from serving as a “letterbox” for too many shell companies.

In practice, domiciliation requires notifying the administration when registering the company. For Monégasque entrepreneurs, all domiciliation-related documents (lease copy, owner’s attestation, etc.) must be provided when submitting the formation file. For foreigners obtaining a work authorization, the address can be declared after installation approval. In all cases, registration with the Trade and Industry Registry is only granted if the company has an address compliant with regulations (either a valid mixed-use lease or a commercial lease).

In summary: domiciling your business at a mixed-use address is possible and quite common initially, but often temporary for capital companies (max two years). Sole proprietors enjoy more flexibility. In any case, you must notify the Minister of State (via the Economic Development Department) of this domiciliation. For state-owned housing, formal authorization from the Minister of State is required, granted tacitly if no response is given within 15 days. This authorization is generally free and indefinite for Monégasque residents in domanial housing but comes with the same constraints (no visible activity, etc.).

Landlord’s Role and Responsibilities

The landlord plays a crucial role in establishing mixed-use, especially in defining lease conditions. That’s why our agency closely supports owners who entrust their properties to us for management, ensuring the lease strictly respects the intended use while protecting their interests. Thanks to our expertise, we provide secure, compliant rentals and actively represent the landlord at every step. Entrusting your apartment’s management to our agency guarantees peace of mind, legal security, and optimal property valuation: simple residential lease or mixed-use lease. If the landlord opts for a standard residential lease, tenants cannot set up an office or a company there. Conversely, by choosing a mixed-use lease, they offer tenants greater flexibility for professional use.

Can they demand additional rent? In principle, no; there is no automatic surcharge. Apartment rents in Monaco are freely set in the free market sector when the lease is signed. If the lease is agreed as mixed-use, the rent may naturally be slightly higher due to the added value of permitted professional use, but this must be contractually stipulated from the outset. The landlord cannot unilaterally impose a sudden surcharge mid-lease on the grounds that the tenant domiciles a company—provided this domiciliation respects the lease conditions. In case of abusive or unauthorized use, the landlord has the right to demand cessation of the illicit activity or terminate the lease for breach of use, rather than “monetizing” the breach. In other words, no Monégasque law provides for specific compensation or additional rent tied to mixed-use: it’s up to the landlord to set an appropriate rent during initial negotiations, considering potential professional use.

Landlord Obligations: Additionally, the landlord must ensure compliance with the premises’ designated use throughout the lease term. If they agreed to a mixed-use lease, they must tolerate professional activity within agreed limits. However, if the tenant exceeds those limits (engages in unauthorized commercial activity, causes disturbances, etc.), the landlord is entitled to intervene. Note that under a mixed-use lease, any commercial activity or the exercise of a strictly liberal profession remains prohibited—the landlord must ensure the tenant does not convert the apartment into an illegal business. This is the landlord’s legal responsibility vis-à-vis the co-ownership and the Administration.

In summary, a landlord can authorize mixed-use through the lease and provide necessary documents for domiciliation. However, they must remain vigilant to ensure compliance with the established framework. They cannot unilaterally change rent or conditions mid-lease, unless a new agreement is negotiated with the tenant. Finally, in case of tenant violations, the landlord is responsible for enforcing the lease (via formal notice or legal action if necessary).

Buildings Concerned: Common Mixed-Use vs. Exclusively Residential (Practical Examples)

Mixed-use is very common in certain Monaco buildings, while completely absent in others. Here are some concrete examples:

• Buildings with Common Mixed-Use: In districts like La Condamine, Fontvieille, or certain areas of Monte-Carlo, many buildings allow mixed-use. For example, Le Suffren (Condamine) offers studios and apartments where occupancy can be residential, office, or both. Similarly, in the Carré d’Or, residences like Le Mirabel permit mixed-use: units are occupied by individuals or professional activities at home. The Rousse/Saint-Roman area also features mixed buildings like Château d’Azur, where studios are rented with mixed-use leases (ideal for a practice or small company). These buildings often have separate entrances (private and sometimes professional) or at least a concierge accustomed to offices. Entrepreneurs value them because they provide a professional address in the Principality without a commercial lease. Listings often highlight “mixed-use” because it is an attractive feature.

• Buildings for Exclusively Residential Use: Conversely, purely residential buildings—often luxury towers or state-owned housing—do not allow any professional activity in apartments. For instance, high-end towers and buildings like Tour Odéon or 26 Carré d’Or are strictly for residential use. Co-ownership regulations in these buildings forbid occupants from setting up offices or professional practices. Even practicing a liberal profession from home can be prohibited. In such buildings, leases remain standard residential, with no exceptions. A landlord secretly leasing to a company or for office use would risk problems with the property manager and neighbors. Thus, an apartment in an exclusively residential building must remain a private living space, and any breach may lead to actions (formal notice to cease the activity, lease cancellation, etc.). This aligns with the landlord’s obligation to lease according to the property’s intended use: leasing a residential apartment as an office would violate the contract.

Beware of Overstepping: Risks of Reclassification as Commercial Use

If the activity conducted in a mixed-use apartment exceeds tolerated thresholds, there is a risk of it being reclassified as undeclared “commercial” use. In other words, the Administration or the landlord might deem that the premises are no longer used as a residence but as a genuine professional space, with the legal consequences that entails.

The main risks of such reclassification are:

• Loss of the Residential Lease in Favor of a Commercial Lease Imposed: If a tenant runs a business or office with public access in a residential property and the landlord tolerates it too long, the tenant might claim the protective status of a commercial lease (Law of 1948) before the courts. Indeed, in Monégasque and French law, there is case law where a lease can be requalified as a commercial lease if all characteristics of a commercial activity are present. This would grant the tenant rights they did not previously have (minimum nine-year term, right to renewal or eviction compensation), which is clearly unfavorable to the landlord. The landlord would lose the freedom to regain their property and become subject to commercial lease rules. Fortunately, in practice in Monaco, controls are vigilant, and it is rare to reach this point without prior reaction from the landlord or the administration.

• Administrative and Penalty Sanctions: Conducting unauthorized commercial activity in a residential property can expose the occupant to sanctions. The Princely Government could refuse to renew the company’s operating authorization as long as it lacks compliant premises, or even withdraw the authorization in case of blatant abuse. Fines can theoretically apply for violating urban planning regulations. Additionally, violating co-ownership regulations (e.g., opening a practice with clients when forbidden) can lead other co-owners or the property manager to initiate civil proceedings to stop the unlawful disturbance.

• Lease Termination by the Landlord for Breach: Contractually, a tenant who exceeds the permitted use (e.g., hiring employees or operating a shop in the apartment) commits a serious breach of the lease. The landlord is entitled to seek judicial termination of the lease for misuse of premises. The tenant would then lose the property and could be liable for damages. It is therefore in everyone’s interest to respect mixed-use limits to avoid such extremes.

Legal Reference Texts and Official Contacts

Several laws and regulations govern mixed-use in Monaco. Here are the main ones for those who wish to consult the texts:

• Law No. 1.331 of January 8, 2007, on Companies and its Application Ordinance No. 993 of February 16, 2007 – These govern, among other things, the possibility of establishing the registered office at the manager’s home (duration one year renewable once).

• Law No. 1.144 of July 26, 1991 (and related texts) – Governs administrative authorization to conduct commercial or industrial activity in the Principality (prior ministerial authorization). Domiciliation at home must comply with these provisions, without prejudice to the activity authorization itself.

• Law No. 1.490 of June 23, 2020 and Ordinance No. 8.214 of August 6, 2020 – Concerning domiciliation of professional activity in a state-owned residential property (domanial housing). These texts provide, for example, automatic authorization within 15 days, minimum 60% capital held by a resident, no duration limit in domanial sector, etc.

• Law No. 1.329 of January 8, 2007 on Co-Ownership of Built Properties – Sets the framework for co-ownership regulations in Monaco. An important article states that if co-ownership regulations oppose professional activity in a domanial building, domiciliation will be refused. Generally, this law guarantees respect for the intended use of premises and building tranquility.

• Sovereign Ordinance No. 3.647 of September 9, 1966 (Urban Planning, Construction, and Road Code) – Governs urban planning matters. It does not explicitly use the term “mixed-use,” but defines procedures for changing the purpose of premises and related infractions. Ministerial Decree No. 2020-539 of August 7, 2020, for example, used the definition of a “mixed-use building” in another context, showing the concept is officially recognized.

• Law No. 490 of November 24, 1948, on Commercial, Industrial, or Artisanal Leases – This is the text that governs commercial leases in the Principality. It is useful to cite because it represents the regime we want to avoid inadvertently applying to a residential lease. This law provides, among other things, the tenant’s right to renewal or, failing that, eviction compensation. It does not apply to residential premises unless the situation has been allowed to turn into clear commercial use.

For any questions or uncertainties, several official contacts can assist you:

• Urban Planning Department – for questions regarding change of use, authorizations to convert premises into an office, and compliance with the Urban Plan.

• Housing Department – for state-owned (public) housing or protected areas, they can indicate specific restrictions for those dwellings.

• Economic Development Department (EDD) – for everything related to business domiciliation and activity authorizations. They process your domiciliation request and ensure the lease complies with regulations. The EDD is located at 9 Rue du Gabian in Monaco, reachable weekdays from 9:30 AM to 5 PM. Feel free to contact them in advance, especially if you’re forming your company, to clarify the procedures.

Finally, it is strongly recommended to enlist a Monégasque real estate professional, such as Petrini Exclusive Real Estate Monaco, an agency affiliated with the Monaco Real Estate Chamber, to guide you. We are thoroughly familiar with local practices and will help you avoid many pitfalls. With this guide and our company’s support, you will have all the keys to use your mixed-use apartment in compliance with Monégasque regulations, with complete peace of mind.

Sources: Princely Government (MyCompany, Journal de Monaco), Urban Planning Department, Law No. 1.490/2020, Law No. 490/1948. All information has been verified to reflect regulations in force in 2025. Enjoy your mixed-use property!