Monaco: legislative proposal seeks to encourage the relocation and transparency of foreign entities holding real estate

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On 2 April 2026, Monaco’s National Council adopted Legislative Proposal No. 276. The proposal pursues a dual objective: encouraging foreign entities owning real estate in Monaco to relocate to the Principality, and enhancing their transparency. It was transmitted to the Prince’s Government on 3 April 2026.

Relocation to Monaco with continuity of legal existence

The first key element of the proposal concerns the relocation mechanism itself. Subject to certain conditions, the entities concerned could relocate to Monaco while preserving their legal existence.

The relocation would nonetheless be subject to a framework. In particular, the entities would need to correspond to a legal form recognised under Monaco law and comply with the applicable Monaco rules.

A temporary exemption from proportional registration duties

To facilitate these transactions, the proposal provides for exemptions from proportional registration duties for certain relocations and property contributions.

This favourable regime would be time-limited: it would apply for a three-year period following the future law’s entry into force.

Introduction of a 1% annual levy

In parallel, the proposal would introduce an annual levy equal to 1% of the market value of the relevant property or property rights, calculated without deducting debt.

Entities disclosing the identity of their ultimate beneficial owners annually would notably be exempt. This exemption is therefore consistent with the proposal’s objective of enhancing transparency.

A legislative process still under way

Adoption of a legislative proposal by the National Council does not bring it into force. The measures described above remain subject to the further legislative process, and their final terms may still change.

Do you hold Monaco real estate through a foreign structure? Our team is available to assess the implications.

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