The Law 887 in Monaco
29 March 2024
What does Law No. 887 entail in Monaco? The Principality of Monaco, a jewel of the French Riviera, is globally acclaimed for its luxurious lifestyle, unparalleled security, flourishing economy, and favorable tax regime. These advantages position Monaco as an elite destination for those wishing to establish a home or invest in real estate. Within this exclusive backdrop, Law No. 887 in Monaco emerges as crucial, especially affecting the liberalized real estate sector, thus demanding special attention from investors and prospective residents.
The Liberalized Sector Under Law No. 887
This law specifically targets “old” buildings erected before September 1, 1947, introducing regulations aimed at protecting and stabilizing tenants’ rights. It signifies a major shift in Monaco’s real estate management, offering greater flexibility in rental conditions.
Legislative Framework: The Sector Liberalized by Law No. 887
Under the auspices of Law No. 887, Monaco has liberalized rental conditions for high-quality properties or those perpetually occupied by their owners. This law distinctly separates the regulated sector it governs from the protected sector, granting owners the liberty to set rents and choose their tenants from a wider pool of eligible individuals, while still requiring six-year renewable leases.
A Broadened Social Objective
Conceived with a pronounced social intent, Law No. 887 aims to widen housing access to a broader population spectrum, surpassing the strict protections provided by Law No. 1235. It seeks to safeguard not just Monegasques and long-term residents but also close family members of the property owner, thereby reinforcing Monaco’s commitment to maintaining its citizens’ welfare.
Rights and Obligations of Owners
This legislation offers owners considerable flexibility in managing their leases, including the right to enter into rental agreements for personal reasons, renovations, or reconstructions, with the stipulation of relocating tenants under comparable conditions. This provision ensures enhanced security for tenants, providing them with a minimum of six years of rental stability.
Toward Flexible Real Estate Management
Law No. 887 also regulates vacation management and permits the use of properties for non-commercial activities in a mixed-use framework, affirming the law’s versatility and adaptability within Monaco’s real estate landscape.
Navigating Real Estate with Law No. 887
At BLS Real Estate, our in-depth understanding of Law No. 887 in Monaco enables us to provide tailored support to our clients, whether they are seeking a residence or looking to invest. Our expertise ensures compliant and secure transactions in one of the world’s most exclusive markets.
To kickstart your real estate project in Monaco or for more information, our team is ready to offer personalized assistance. Feel free to contact us.
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