Properties under LAW 887 have specific parameters that relate to the rental of the property. If you buy a property under LAW 887 you must know that it can only then be leased to persons who fall into the following categories:

• People who are Monaco nationals
• People resident for at least 5 years in Monaco and have had professional activity in Monaco for the last 6 months
• Individuals who have worked in Monaco for longer than 5 years 
• Relatives of the owner in either ascending or descending order or the spouse of the owner

The minimum lease contract for a LAW 887 property is 6 years. The lease can be terminated at the end of each contractual year solely at the discretion of the owner. Whilst this may seem unattractive to you if are looking to invest in a LAW 887 property, the upside is that there is no cap to the rent you can charge and you also can include an annual provision rate in the lease.

Monaco property LAW 1291/1235 applies attributed to properties that were built before September 1st 1947. These properties will have a fixed rate of rent which will be determined by the Monaco housing authority. If you buy a property under LAW 1291/1235 you must know that it can only then be leased to persons who fall into the following categories: 

People who are Monaco nationals

People who are born from Monegasque parents, spouses, widowers/widows of Monegasque citizens and people divorced from Monegasque nationals

People who have lived in Monaco full time for no less than forty years

People who have been born in Monaco and have lived in the Principality since birth so long as their parents were resident at the time of the birth. Also, if for a medical or unforseen cirumstance the person was born outside of Monaco, they may still be entitled to rent a LAW 1291/1235 property

Monaco nationals will hold priority over non-nationals to rent the apartment and the lease will be for a period of 6 years. The lease can be terminated early by the leaseholder if required.