Monaco Law 1.235
Extended tenant protections, the Law 1.291 amendment, and what buyers need to know before purchasing a Law 1.235 property in Monaco.
Important for buyers
Law 1.235 properties carry occupancy restrictions that may affect your ability to gain vacant possession, finance the purchase, or redevelop the property. MonacoViews labels all Law 1.235 properties clearly on every listing page.
What is Law 1.235?
Monaco Law 1.235 is rent-control legislation that extended residential tenancy protections to a broader category of occupants than the earlier Law 887. The law was subsequently amended by Law 1.291, which refined its scope. The two statutes are therefore read together when assessing the legal position of a specific tenancy.
The central effect of Law 1.235 is that qualifying residential tenants are protected from eviction or rent increases beyond controlled levels. An owner cannot simply recover possession of the property by selling it or notifying the tenant that the tenancy is at an end. The protections follow the property, not the landlord, so a buyer steps into the landlord position with the same obligations as the seller.
Where Law 1.235 differs in practical terms from Law 887 is in the scope of tenancies it covers and the conditions attached to the protections. Legal advice specific to the individual tenancy and property is always necessary — the interaction between the two laws and the Law 1.291 amendment means that generic descriptions can only give a broad overview.
The Law 1.291 Amendment
Law 1.291 was enacted to amend and clarify the application of Law 1.235. It adjusted the conditions under which the protections apply and addressed certain edge cases that had arisen in practice. When a property listing references Law 1.235, the protections in force are those established by Law 1.235 as modified by Law 1.291. A Monegasque notary can advise on the precise provisions applicable to any specific tenancy.
What does Law 1.235 mean for buyers?
- No automatic right to vacant possession
- Controlled rent may be below current market rate
- Owner use requires satisfying legal conditions
- Renovation or change of use may be restricted
- May affect mortgage lender appetite
- Purchase price typically 10–25% below free-sector
- Steady, regulated rental income
- Long-term asset in a supply-constrained market
- Potential for significant capital uplift on vacant possession
- Lower entry point to Monaco residential market
Law 1.235 properties can represent a considered long-term investment for buyers who do not require immediate occupation. The key question is whether the income and eventual capital uplift make a compelling case relative to the restrictions and uncertainty around timing.
How does Law 1.235 affect price?
| Scenario | Typical price vs free-sector |
|---|---|
| Protected tenant in occupation, long-term outlook | Approx. 15–25% below market |
| Tenant approaching natural end of protected period | Approx. 10–18% below market |
| Vacant possession now available (law lapsed or satisfied) | At or near full market value |
Discounts are indicative and vary by building, district, tenant circumstances, and negotiation. Always obtain independent legal advice before purchasing.
Buyer checklist for Law 1.235 properties
Frequently asked questions
What is Monaco Law 1.235?
Monaco Law 1.235 is a rent-control law that extended occupancy protections to a broader category of residential tenants in Monaco than the earlier Law 887. It was subsequently amended by Law 1.291, which refined the scope and conditions of the protections. Together, these laws create a framework that restricts a landlord's ability to recover possession of residential property from protected tenants.
What did Law 1.291 change?
Law 1.291 was an amendment to Law 1.235 that adjusted and in some respects refined the conditions under which tenant protections apply. It is referred to alongside Law 1.235 because the two pieces of legislation must be read together to understand the current legal position of a given tenancy.
Is Law 1.235 the same as Law 887?
No. Law 887 and Law 1.235 are separate statutes. Law 887 has a more established history and focuses on a narrower category of tenancies. Law 1.235 and its amendment Law 1.291 were introduced to extend and modernise rent-control protections across a wider range of residential lettings. Whether a specific property falls under Law 887, Law 1.235, or neither will depend on the tenancy terms and when the tenancy was created.
Can a Law 1.235 property be sold?
Yes. A Law 1.235 property can be sold, but the sale is subject to the existing protected tenancy. The buyer acquires the property with the tenant in place and takes on the landlord obligations under the law. The sitting tenant cannot be required to vacate as a consequence of the sale.
How much cheaper is a Law 1.235 property?
Law 1.235 properties typically sell at a discount of 10 to 25 per cent compared with an equivalent free-sector property. The discount is generally somewhat narrower than for Law 887 properties, reflecting the different scope and conditions of the protections, but varies substantially depending on tenant age, circumstances, and the likely timescale to vacant possession.
How do I check whether a Monaco property is subject to Law 1.235?
The applicable law will be identified in the property listing details and, definitively, in the notarial deed and tenancy documentation. MonacoViews flags Law 1.235 properties with a clear label on each listing. A Monegasque notary or property lawyer can verify the legal status before any purchase commitment is made.
Related legislation: Law 887
Law 887 is an older and in some respects stricter rent-control statute that applies to a different category of Monegasque tenancies. If you are looking at a property that references Law 887, our dedicated guide explains the specific conditions and the hereditary occupancy right.
Monaco Law 887 guideThis guide is for general information only. Monaco property law is complex and individual circumstances vary. Always obtain independent legal advice from a Monegasque notary or qualified lawyer before making a purchasing decision.