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Renting Out Property in Monaco: What Every Landlord Needs to Know

Advice from John Taylor

Renting out an apartment in Monaco is far from a straightforward transaction. Behind the sea views and high-end finishes lies a precise legal framework that international investors often underestimate. In Monaco, not all properties are rented out the same way. Some are "free" — unregulated — while others fall under strict legal regimes such as Laws 887, 1235, or 1291. Here is a clear guide to understanding what it really means to be a landlord in the Principality.

I. Can You Freely Rent Out Your Property in Monaco?

Yes — provided the property is "free" (i.e., not subject to a regulated tenancy regime).

If the property falls under a regulated regime (Law 887, 1291, or 1235), strict conditions apply regarding:

The type of eligible tenant
Lease duration
Capped rent levels

A misreading of the legal status can lead to complications or even a complete rental blockage.

The John Taylor reflex : always identify the legal regime of a property before putting it on the rental market.

II. The Three Laws Every Landlord Must Know

Law 887 Applies to residential buildings constructed before 1 September 1947.

Key implications:

Leases must run for a minimum of 6 years.
Rent is freely set by the landlord.
Upon a tenant's departure, landlords must file a vacancy declaration within 8 days, followed by a letting or occupation declaration once the property is re-occupied.
Eligible tenants: Monegasque nationals, direct relatives (ascendants/descendants) of the landlord or their spouse, residents of Monaco for at least 5 years with a professional activity, or individuals employed in Monaco for at least 5 years.
Tenants may terminate the lease annually with notice (typically 3 months), while landlords may only do so after 6 years, generally with 3 months' notice.

Read Law No. 887 →

Law 1235

Capped rent
Minimum lease term (typically 6 years)
Tenant must be Monegasque or a long-standing resident
Rarely attractive for investment purposes

Law 1291

Applies to very old buildings
Extremely low, near-frozen rents
Very low tenant turnover
Difficult to realise market value

Some Law 1291 properties may appear attractive due to their size or acquisition price — but their rental yield is virtually nil.

III. Mandatory Steps Before Renting

Verify the legal regime of the property (via a notary or a specialist agency)
Draft a compliant lease (professional assistance is strongly advised)
Register with the tax authorities
Take out non-occupying landlord insurance

In Monaco, even drawing up a rental agreement can carry significant legal consequences. Professional guidance is not just recommended — it is essential. Our team is here to support you throughout the process.

IV. Taxation & Rental Income

No local tax on rental income in Monaco
Rental income is not taxed within the Principality, however landlords remain subject to taxation in their country of tax residence (e.g. income tax in France)
If the property is held through a company: specific rules on transparency and corporate tax structures apply

We recommend consulting your tax adviser or private banker based on your personal tax residency situation.

V. Why Entrust Your Property to John Taylor?

Legal security of the rental contract
Thorough tenant vetting
Full administrative management and tenant relations
Yield optimisation (rental pricing advice, coordination with renovation specialists, project management)
Support in the event of resale

At John Taylor, our team has in-depth knowledge of Monaco's property laws and the specific dynamics of the local market.

Renting out property in Monaco is not something to approach without preparation. Every property operates under rules that can profoundly affect its profitability and long-term value. As a landlord, mastering these implications before signing any lease is essential. John Taylor Monaco supports each client with precision and clarity, ensuring every rental is a secure and profitable operation.

Considering letting your property? Contact our team for a serious, confidential assessment.