Monaco Pre-emption Right:
Monaco-Ville Real Estate and the Law Protecting the Rock

Bill No. 1134, submitted on 6 October 2026, would establish a State right of pre-emption over certain property sales in Monaco-Ville, including certain transfers of company shares, and would make changes of use and building works subject to prior authorisation. On Monday, 12 October 2026, the National Council voted on Bill No. 1134, only six days after it was submitted. There are neighbourhoods where acquiring property means purchasing more than square metres, it means acquiring a piece of history. Nowhere is this more evident than on the Rock. The Prince’s Palace, the Cathedral, the National Council and the Palais de Justice stand alongside narrow streets where Monegasque families have lived for generations.

It is precisely this balance that the Prince’s Government now intends to protect through legislation. By introducing a pre-emption right in Monaco-Ville, Bill No. 1134 could redefine the way properties in this highly privileged district are bought, sold and transformed. For an international clientele focused on long-term wealth preservation, this is not merely a legislative development, but a structural signal for Monaco’s real estate market.

A Monaco Pre-emption Right Designed Specifically for Monaco-Ville

The text comprises fifty articles and is based on an observation made by the Minister of State: the current rules would no longer be sufficient to prevent the gradual transformation of the Rock into a district increasingly shaped by real estate investment and tourism. Successive acquisitions, short-term furnished rental projects, and local shops being replaced by businesses aimed at visitors: taken individually, these operations may be lawful; taken together, according to the Government, they could alter the very identity of the old town. The proposed perimeter covers Monaco-Ville, its ramparts, glacis, cliffs, gardens and the Chemin des Pêcheurs, with its exact boundaries to be determined by Sovereign Ordinance. This would be a regime specific to the Rock: the Carré d’Or, Larvotto, Fontvieille and La Condamine are not covered by this text.

Buying an Apartment in Monaco-Ville: What the Pre-emption Right Would Change

In practical terms, the State could step into the place of the prospective buyer when certain properties are offered for sale. This right would not be discretionary: it would have to pursue clearly defined objectives, such as preserving a historic building, protecting permanent residential use or creating a public space, and any decision to acquire a property would have to be duly justified. Under the proposed mechanism, the owner or notary would be required to declare the terms of the transaction, together with the identity of the purchaser, in advance. The authorities would then have one month to make a decision, although this period could be suspended if additional documents or a property inspection were requested. Failure to respond within the applicable timeframe would be deemed a waiver of the State’s pre-emption right.

Should the State propose a different purchase price, a valuation procedure would be initiated, while the seller would retain the right to withdraw the property from the market without penalty. As the Minister of State has emphasised, the mechanism is not intended to constitute a disguised form of expropriation, which would remain governed by existing legislation and the safeguards it provides. For a purchaser, the most tangible consequence would therefore be one of timing. Between the signing of a preliminary agreement and completion of the final deed of sale, a period of uncertainty would arise. This would need to be anticipated when drafting conditions precedent and structuring the financing timetable.

Property-Holding Companies and Share Transfers: Legal Structures Under Scrutiny

This is arguably the most significant aspect for an international clientele, which frequently holds Monegasque real estate through corporate structures. According to published analyses of the bill, the proposed regime would extend to transfers for consideration of shares or equity interests that confer, directly or indirectly, a majority of the share capital or voting rights, where more than half of the value of the company’s assets consists of real estate located within the relevant perimeter. Certain family transfers would be expressly excluded. In other words, holding an apartment in Monaco-Ville through a company would no longer, in itself, be sufficient to fall outside the scope of the State’s pre-emption right. Existing wealth-holding structures will therefore need to be reassessed in light of the final wording of the legislation, together with each family’s notary and usual legal and tax advisers.

Renovation and Changes of Use in Monaco-Ville: The Proposed New Framework

The bill draws a clear distinction between the right to acquire a property and the right to use it in accordance with a particular project. Prior authorisation would be required to change a property’s category of use, to convert permanent residential accommodation into short-term furnished rental accommodation, or to merge or subdivide residential units. In this area, unlike the pre-emption procedure, failure by the authorities to respond would be deemed a rejection of the application. Construction, demolition and alteration works affecting façades, roofs, joinery and other external elements would also be subject to prior authorisation, as would certain heritage-related interior features to be identified in a future set of architectural and conservation requirements. Routine maintenance that does not alter either the appearance of the property or the materials used would instead be subject only to a prior declaration. For the owner of a high-end apartment planning a substantial renovation, the timing and preparation of the application process would therefore take on renewed importance.

Signed Preliminary Agreements and Existing Authorisations: The Bill’s Transitional Regime

The Government has sought to reassure property owners and market participants who are already engaged in transactions or projects on Monaco-Ville. Article 49 of the bill would exclude from the new pre-emption regime any transaction that, prior to publication of the law, had already been the subject of a promise to sell or preliminary sale agreement having acquired a legally certain date. Planning permissions and other urban-planning authorisations already granted would remain valid, while existing uses and activities lawfully carried on could continue and be transferred without requiring a new authorisation, provided that they are not subsequently modified. The concept of a legally certain date is not a mere formality: only verification by a notary can establish whether a preliminary agreement satisfies this requirement.

Selling Property in Monaco-Ville: An Open Market, but One Where Timing Matters

As of today, an apartment in Monaco-Ville continues to be sold under the law currently in force: the bill has not yet been debated and none of its provisions has legal effect. Nothing in the text as publicly presented establishes any distinction based on the nationality of the purchaser. For an international investor, the principal issues therefore concern procedure, timing and the structure through which the property is held. Our interpretation is that this represents a framework for regulation rather than a closure of the market. By reaffirming the residential character of the Rock, the State is signalling that the scarcity of these addresses forms part of Monaco’s national heritage. For Monaco’s prime real estate market, this greater legal clarity could, over time, reinforce the use value of properties genuinely intended for occupation, while strategies based on short-term rentals or the restructuring and subdivision of units may become less relevant. The bill may still evolve during its parliamentary examination, and this analysis will be updated once the legislation is adopted. If you are considering acquiring, selling or renovating an exceptional property in Monaco-Ville, we would be pleased to discuss your project with you in complete discretion at our offices in Château Périgord, Monaco.

This article is provided for information purposes only and does not constitute legal or tax advice. For any transaction, we recommend that you consult your notary and your usual advisers.