Monaco Set to Overhaul Its Real Estate Professions

A Bold Legislative Proposal to Reshape a Strategic Sector

On 24 September 2025, Bill No. 271 was introduced before the National Council of Monaco, marking a turning point in the regulation of real estate activities and professions in the Principality. This legislative initiative comes more than twenty years after the foundational Law No. 1.252 of 12 July 2002, which has remained unchanged since its adoption.

Comprising 18 articles, the bill seeks to modernize the regulatory framework, enhance transparency, and strengthen professional standards in a market that has become increasingly complex and subject to international compliance requirements, notably in anti–money laundering and counter–terrorism financing.


1. Reinforcing Local Presence and Managerial Accountability

One of the bill’s key elements concerns the conditions for obtaining administrative authorization.

Applicants will now be required to reside effectively in Monaco, a condition that will also apply to company directors and beneficial owners. In addition, directors will need to hold at least 25% of the company’s share capital, aligning Monaco’s framework with FATF standards on beneficial ownership.

The proposal also introduces a Ministerial approval mechanism for shareholders of public limited companies (SAM) and partnerships limited by shares, both at incorporation and in the event of shareholding changes.
Finally, it formalizes the long-standing rule prohibiting real estate activities from being conducted at one’s private residence, while allowing the use of shared office spaces for up to two years during the initial phase of business establishment.

→ These measures aim to ensure local anchoring, effective managerial responsibility, and tighter oversight of ownership structures.


2. Professional Card and Continuous Training: Towards a Defined Professional Status

Inspired by the French system, the bill introduces a professional card for directors, branch managers, and negotiators. Issued for five years, it serves both as an identification tool and a competency guarantee.

Cardholders will be required to undertake initial training within one year of assuming their role, followed by refresher training every five years as a condition for renewal. Training costs will be borne by the cardholders themselves, while transitional provisions will apply to professionals already active when the law enters into force.

→ This initiative reflects a clear intent to foster a culture of compliance and professionalism, establishing unified standards across the industry.


3. Written Mandates as the New Legal Standard

All real estate transactions will now need to be governed by a written mandate, limited in duration and potentially established in electronic form under the Monaco Civil Code. Commissions or fees may not be charged prior to the successful completion of the transaction, and property managers will be required to provide an annual financial report to their clients.

→ These provisions bring legal certainty and transparency to contractual relationships, mitigating disputes and reinforcing client protection.


4. Commissions Reserved for Licensed Professionals

Under the new framework, only licensed professionals will be allowed to receive commissions. Payments to unauthorized intermediaries will be prohibited and subject to penalties.

→ This aims to curb unlicensed activity and promote fair competition, protecting clients from informal or unregulated brokers.


5. Real Estate Advertising: The End of the “Digital Wild West”

A new article explicitly prohibits real estate advertising by non-professionals. Only licensed entities may advertise, or delegate this right to a third party under a formal mandate clearly indicating the name of the authorized establishment.

Exceptions exist for property owners advertising their own assets, or for non-commercial re-shares of existing listings, including on social media.

→ The measure strengthens the credibility and integrity of Monaco’s market by reducing brand misuse and misleading public representation.


6. Sanctions: Stricter and More Targeted

The proposal establishes a graduated system of penalties, proportionate to the seriousness of the violation:

- €9,000 to €18,000 for administrative or procedural breaches.
- €18,000 to €90,000, or up to the amount of unlawful gain, for more severe offenses such as unlicensed practice or unauthorized advertising.

Administrative sanctions, including suspension or revocation of authorization, could also be imposed in serious cases.

→ The bill introduces a credible deterrent framework, correcting what had long been a merely theoretical regime of sanctions.


Outlook and Implementation Challenges

While Bill No. 271 remains under parliamentary review, it already outlines a major structural reform of Monaco’s real estate sector. Its objectives - market integrity, professional accountability, and regulatory alignment - are clear and necessary.

Still, several issues warrant close attention:

1. The local residence and shareholding requirements could limit market entry for experienced foreign operators, reducing competition and innovation.
2. Mandatory training, while beneficial, may impose disproportionate costs on smaller firms without state-supported programs.
3. The advertising restrictions will need careful clarification to avoid hindering digital marketing strategies for local agencies.
4. Finally, the proposal remains silent on digital transformation and data governance, now central to modern real estate operations.

In essence, the proposal embodies Monaco’s ambition to position itself as a high-standard, compliant, and selective market - a jurisdiction that prizes credibility and trust, albeit at the price of greater entry barriers.