Monaco real estate law: sector reform 2025
Publié par Paolo Petrini le 16/10/2025
Temps de lecture
8
min.
Taxation and Legislation
Filed on September 24, 2025, draft law no. 271 modernises the legal framework for real estate in Monaco, strengthens transparency and professionalises the stakeholders in the sector.
This law marks a decisive step in modernising the legal framework for real‑estate professions. Twenty‑three years after the founding law no. 1.252 of 12 July 2002, which has remained unchanged since its adoption, this ambitious text of 18 articles aims to professionalise the sector, strengthen transparency and align the Principality with international standards in financial compliance and anti‑money laundering.
This reform takes place in a singular economic context: on a territory of only 2.2 km², the Monegasque real‑estate market has more than 171 agencies, an exceptional volume which fuels strong competition. Since 2020, only Monegasques can open a new agency, a measure intended to regulate a sector deemed saturated. In parallel, unaccredited actors — concierge services, family offices, bankers or business introducers — sometimes operate illegally, charging fees for simple introductions. The Monaco Real Estate Chamber has undertaken to actively fight these abuses in court if necessary.
In this context, bill 271 aims to guarantee a high level of professionalism and protect investors as well as residents against unauthorised actors. It provides the administration with new control tools and reaffirms Monaco’s desire to consolidate a market based on competence, transparency and trust.
Brought forward by a parliamentary initiative, this proposal was unanimously adopted in a public session on October 2, 2025. It does not yet have the force of law; its entry into force will depend on the final legislative process and the publication of implementing ordinances.
Main measures of bill no. 271
Bill no. 271 supported by the National Council of Monaco reorganises access to and practice of real‑estate professions in Monaco, formalises the professional card and continuing training, makes the written mandate compulsory, reserves commissions for authorised holders, regulates advertising and strengthens sanctions.
1. Local anchoring and responsibility of stakeholders
The authorisation to operate requires actual residence in the Principality for natural persons, an obligation extended to directors and beneficial owners of companies. This measure secures the Monaco real estate market and facilitates controls.
Directors must hold at least 25 % of the capital, in line with FATF standards for identifying beneficial owners. The aim is to link management to a real economic interest, which is useful for compliance.
Ministerial approval becomes mandatory for shareholders of real‑estate SAM and SCA companies, both at incorporation and when shareholdings change. Conducting business at home is formally prohibited, with a two‑year tolerance for co‑working or start‑up domiciliation.
- Effective residence required for directors and beneficial owners.
- 25 % shareholding threshold for directors.
- Approval of shareholders, prohibition of operating at home, two‑year tolerance.
These measures ensure real presence, traceability of economic beneficiaries and accountability on the territory.
2. Professional card and continuing training
Creation of a compulsory professional card for administrators, agency directors and negotiators. Valid for five years, it specifies identity, establishment and scope of activities, with notification of changes to the Administration.
Implementation of initial training in the year following appointment, then an update every five years as a condition for renewing the card. The content will be set by ordinance, in consultation with Monaco Real Estate Chamber.
The costs are borne by professionals, with transitional provisions for those already in post. The system brings Monaco closer to European standards, useful to international investors who compare markets.
- Five‑year professional card and explicit scope of authorisation.
- Initial training followed by renewal through five‑yearly updates.
- Transitional arrangements for professionals already active, increased visibility for clients.
3. Written mandate compulsory for all transactions
Every transaction requires a written mandate for a limited period, which may be in electronic form under the Civil Code. The payment of any remuneration before completion is prohibited, protecting sellers and buyers.
In rental management, the mandate requires at least an annual account of management to the principal. The measure enhances the traceability of flows and reduces disputes, useful to both owners and managers.
- Written mandate with timestamp, including electronic.
- No deposit or commission before the deed.
- Annual management report, increased traceability.
4. Commissions reserved for authorised professionals
The commission may only be paid to a holder of the administrative authorisation. The aim is to exclude unaccredited intermediaries and avoid unfair competition, to the benefit of a clearer market.
The system protects the clientele and values compliant operators, which goes beyond the local scope alone. Investors see this as a sign of market quality and contractual stability.
To find out more about the local framework and best practices, see our page dedicated to luxury real estate in Monaco, which is widely consulted by international buyers.
5. Regulation of real‑estate advertising
A new article prohibits real‑estate advertising by non‑professionals. Only authorised actors may publish advertisements, or delegate to a third party under an explicit mandate with mention of the authorised establishment.
Two exceptions remain: the owner for their property and the non‑profit republication of an existing advertisement. The measure protects the credibility of advertisements and public trust.
- Advertisements reserved for authorised holders; delegation to a third party possible with clear mention.
- Limited exceptions, to combat impersonation and confusion.
6. Strengthened administrative and criminal sanctions
Sanctions are modernised and proportionate to the seriousness. Procedural offences related to the mandate and administrative obligations carry appropriate fines. Serious offences such as illegal practice or prohibited advertising fall under a higher scale.
Administrative measures target legal entities, with suspension or revocation of the authorisation in the event of serious breaches. This dissuasive lever supports the effectiveness of the new framework.
- Graduated fines depending on the nature of the breach.
- Possibility of withdrawal of authorisation for offending companies.
- Aim of prevention and competitive fairness.
Taken together, these six aspects structure a more professional and transparent market, reduce risk areas and clarify responsibilities, for the benefit of residents and investors.
Implementation issues and prospects
In our view, bill no. 271 marks a real turning point for the Monegasque property market. By strengthening transparency and professionalisation, it meets a long‑standing expectation for a more rigorous framework, commensurate with Monaco’s own economic and ethical requirements. This text carries a clear ambition: to preserve the credibility of an exceptional market while restoring common rules for all players.
As field professionals, we share the spirit of this reform to a large extent. The sector needed a jolt, a more demanding foundation to restore confidence and curb certain practices which, over the years, have tarnished the image of the profession — fictitious listings, inconsistent commissions, unauthorised intermediaries. These isolated abuses undermine the reputation of an ecosystem in which the majority of agencies nevertheless operate with rigour and loyalty.
Our analysis points towards a strengthened, but also more coherent, regulatory framework. We believe it would be appropriate to introduce a unified commission scale, applicable to all authorised agencies. This measure would restore an equality of conditions between professionals, put an end to destabilising practices and value competence rather than price escalation. It’s a matter of fairness, but also of respect for the client.
Another essential issue is the proliferation of fake advertisements. This practice, which is still all too common, blurs the perception of the market and undermines public confidence. We believe that a systematic control mechanism, accompanied by deterrent sanctions, is indispensable. Transparency begins with the truthfulness of the information published; without this, no regulatory framework, however strict, can be sufficient to restore confidence.
In the longer term, the creation of a professional order of real‑estate agents would, in our view, represent a structuring advance. This body, based on compulsory membership and a binding code of ethics, would provide a common base of values and responsibilities. It would defend the profession in its noblest aspects — expertise, transparency and loyalty to clients.
In the same vein, the Monaco Real Estate Chamber should evolve towards a more active role. An expanded power of intervention, going beyond simple consultation, would allow it to regulate abuses and guarantee truly fair competition. Those who abide by the rules should no longer be penalised by inaction in the face of unethical practices.
Finally, any lasting reform must be based on consultation with professionals. The fairest texts are those that take into account the reality on the ground: the diversity of structures, operational complexity and the need to adapt standards to everyday practice. An open consultation of the Monegasque real‑estate sector would help refine the implementing decrees and ensure a balance between requirements and economic vitality.
The strengthening of the legal framework should not be seen as a constraint, but as a promise: that of a more transparent, more dignified and more sustainable market. To regulate is to protect value. And in an environment as singular as Monaco, it is also to assert a shared vision of what real‑estate excellence should be.
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