Monaco’s National Council unanimously passed a long-awaited bill regulating the profession of property dealers on June 27. The bill, initially introduced on May 10, 2021, and submitted by the Monegasque government on October 10, 2022, aims to supervise and regulate property dealing in the Principality.

New Regulations and Requirements

The law defines property dealers as those who regularly and speculatively buy and sell real estate, businesses, or shares in real estate companies for profit. Unlike real estate agents, property dealers own the properties they trade.

To practice, property dealers must reside in Monaco, obtain a financial guarantee from a local bank, and secure professional liability insurance. The bill also introduces new tax rates: 4.75 percent for individuals and 7.50 percent for companies, reduced to a flat rate of three percent for those meeting legal obligations. Additionally, dealers must upgrade properties to meet current electrical and energy standards.

Impact on the Market

The number of property dealers in Monaco has decreased from 290 in 2019 to 231 in 2024. This decline is partially attributed to the impending regulations. The new law seeks to curb speculative practices and ensure that property improvements contribute to market stability.

Support and Implementation

The Prince’s Government and National Council have praised the bill for enhancing the property market’s transparency and integrity. The law also includes provisions for administrative and criminal sanctions to enforce compliance.

National Council President Thomas Brezzo highlighted the importance of observing the law’s impact before considering further authorizations for property dealers, especially for non-Monegasques.

The new regulations will come into full effect before September 1, 2024, ensuring a well-regulated and dynamic property market in the Principality.

Featured image courtesy of the National Council: Karen Aliprendi, National Council member and rapporteur of the bill on property dealers