At first glance, Bill No. 278, introducing a new Commercial Activity Lease, may appear to be a technical reform of Monaco's commercial lease framework. In reality, its purpose is much broader. It reflects a clear intention to adapt Monaco's legal system to the needs of a changing economy, where the mobility of businesses, capital and talent has become a key driver of competitiveness. As Monaco continues to diversify its economy, encourage innovation and address the challenges of limited commercial space, this reform could become another valuable tool in strengthening the Principality's international appeal.   A Proven Legal Framework For almost eighty years, Law No. 490 of 24 November 1948 has been one of the cornerstones of Monaco's commercial lease regime. By protecting commercial property rights, it has provided businesses with long-term security, making it particularly well suited to traditional activities whose value depends on the stability of their business premises. This framework remains highly relevant. However, the needs of businesses have evolved significantly. Start-ups, fintech companies, technology businesses and representative offices often value flexibility as much as, if not more than, long-term stability. Their growth frequently requires the ability to adapt quickly, including in relation to their business premises. This is precisely the objective of Bill No. 278. Rather than replacing the existing regime, it introduces an optional alternative designed to broaden Monaco's legal framework and offer businesses greater choice.   Greater Flexibility for Businesses The proposed Commercial Activity Lease is based on a simple principle: greater contractual freedom. Among its main features are: freely negotiated rent, no pas-de-porte (key money), a security deposit capped at three months' rent, annual rent reviews linked to an index, no automatic right to lease renewal, the tenant's right to terminate the lease after one year, subject to six months' notice.   Unlike the traditional commercial lease regime, this new framework places greater emphasis on business flexibility than on the protection of commercial property rights. In a Principality where commercial premises remain a scarce resource, this added flexibility could make it easier for new businesses to establish themselves, reduce entry costs and further enhance Monaco's attractiveness for international investors and entrepreneurs.   Finding the Right Balance Like any legislative reform, the proposal also raises important questions. Reducing the protections associated with commercial property rights could, in some sectors, affect the value and transfer of businesses. Likewise, in an already constrained property market, greater contractual freedom could place additional pressure on commercial rents. The challenge will therefore be to strike the right balance between two complementary regimes: a protective framework for businesses seeking long-term stability, a more flexible lease designed for innovative companies, growing businesses and new market entrants.   Supporting Monaco's Economic Strategy Beyond commercial lease law, Bill No. 278 reflects a broader development in Monaco's legislative approach. Today, the law is not only intended to protect economic operators; it is also an important tool for supporting economic growth and strengthening the Principality's international competitiveness. If adopted, the proposed Commercial Activity Lease would provide businesses with a flexible and practical legal option while preserving a long-established framework that has supported Monaco's economic development for nearly eight decades.   In Summary Bill No. 278 is not intended to replace the protective regime established under Law No. 490. Instead, it introduces an optional and more flexible alternative designed to meet the needs of a new generation of businesses while further strengthening Monaco's economic attractiveness.

By Sovereign Ordinance No. 11.964 of 12 June 2026, published in the Journal de Monaco, the Principality has brought into force the Convention between the Principality of Monaco and the United Arab Emirates for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance. Signed in Dubai on 13 November 2021, the Convention entered into force for Monaco on 12 June 2026. Its implementation represents a further step in the expansion of Monaco's tax treaty network and strengthens the legal certainty of cross-border economic relations between Monaco and the United Arab Emirates. Key Features of the Convention The Convention is designed, in particular, to: allocate taxing rights between Monaco and the United Arab Emirates in order to eliminate double taxation; establish mechanisms to prevent tax evasion and tax avoidance; strengthen administrative cooperation between the competent authorities of both jurisdictions; provide a more secure legal framework for individuals and businesses with activities or investments in Monaco and the United Arab Emirates. Practical Implications The entry into force of this Convention is of particular importance for investors, multinational groups, family offices and private clients with interests in both jurisdictions. As with any tax treaty, its practical application will depend on the interpretation of its specific provisions and their interaction with the domestic tax laws of each State. The Convention may have significant implications for the taxation of cross-border income, the structuring of international investments and the organisation of cross-border business activities. Our firm regularly advises clients on the application of international tax treaties and assists them in assessing the practical implications of new tax developments affecting Monaco and cross-border transactions. Reference: Sovereign Ordinance No. 11.964 of 12 June 2026 bringing into force the Convention between the Principality of Monaco and the United Arab Emirates for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance. Official text: https://legimonaco.mc/tnc/ordonnance/2026/06-12-11.964/

Monaco Reaches a Major Milestone Following its Plenary Meeting held from 15 to 19 June 2026, the Financial Action Task Force (FATF) adopted Monaco's fourth progress report and acknowledged, on a preliminary basis, that the Principality has substantially completed the implementation of the Action Plan adopted in June 2024. This decision marks a significant milestone in the process initiated two years ago and confirms the substantial progress made by Monaco in strengthening its framework for combating money laundering, terrorist financing, and proliferation financing. The next step will be an on-site visit by the FATF to the Principality, a mandatory prerequisite for Monaco's formal removal from the FATF's "grey list" of jurisdictions under increased monitoring. This could take place during the FATF Plenary Meeting in October 2026. Beyond this important milestone, recent developments reflect a broader evolution in international standards. The focus has shifted from technical compliance alone to demonstrating the effective implementation and practical operation of AML/CFT/CPF measures. For regulated professionals, this development underscores the importance of maintaining robust, well-documented, and demonstrable compliance procedures—not only in preparation for the forthcoming FATF on-site visit, but also in anticipation of future international assessments, particularly those conducted under the MONEYVAL evaluation process.