Regulated housing sectors

Monaco housing sectors:

• The free sector, which has no specific regulations.
• The state-owned sector, managed by the government and reserved for Monegasque citizens.
• The regulated sector, which applies to buildings constructed before September 1, 1947, and is governed by Laws 1235, 1291, and 887.

The protected sector (Laws 1235 and 1291)

This sector benefits from regulated rents, determined by the Housing Department based on market prices. It is reserved
for protected persons, ranked in the following order of priority:

• Monegasque citizens
• Children of Monegasque parents, spouses, widows/widowers of Monegasques
• Divorced individuals with children in common with a Monegasque citizen
• People born and residing in Monaco since birth
• Residents who have lived in Monaco for at least 40 consecutive years

The lease has a 6-year renewable term, with a 3-month notice period for tenants. The landlord may terminate the lease only for personal use or significant renovation work.

The liberalized sector (Law 887)

This sector applies to higher-quality housing and properties historically occupied by their owners. It is open to:

• The owner’s close relatives (ascendants, descendants, and spouses)
• Monegasque citizens
• Residents who have lived in Monaco for at least 5 years and worked in the Principality for over 6 months
• Employees working in Monaco for at least 5 years

The lease also has a 6-year renewable term, but tenants can terminate it annually without justification. Unlike in the protected sector, landlords can end the lease at its expiration without providing a reason. 
In both sectors, certain non-commercial professional activities may be allowed under specific conditions, with the owner’s approval and in compliance with co-ownership regulations.