Renting in Monaco: lease registration fees, joint and several guarantors and property condition reports
Before renting a property in Monaco, it is useful to understand lease registration fees, the implications of appointing a joint and several guarantor, and the role of property condition reports.
Registration fees: 1% of rent and charges over the lease term
Registration duty amounts to 1% of the total rent and charges payable over the term of the lease. A two-year lease therefore takes two years into account; a three-year lease takes three.
Example based on monthly rent of €5,000 plus €500 in charges, assuming these amounts remain unchanged:
| Lease term | Registration fees |
|---|---|
| 1 year | 660 € |
| 2 years | 1 320 € |
| 3 years | 1 980 € |
A joint and several guarantor: additional protection for the landlord
A joint and several guarantor is someone who undertakes to pay if the tenant fails to fulfil their obligations. Depending on the terms of the guarantee, it may cover rent, charges and the cost of repairing damage attributable to the tenant, including damage identified at check-out.
A lease guarantee is subject to a specific registration duty of 0.50%, calculated according to the scope of the amounts guaranteed.
Where a spouse is a party to the agreement, it is important to establish whether they are signing as a joint tenant or as a guarantor. Marriage alone should not be assumed to provide an exemption.
A three-month deadline to register the lease
A lease signed as a private agreement must be registered within three months of signature. After this deadline, the legislation provides for registration duty to be doubled.
For a lease with registration duty of €660, late registration therefore increases this amount to €1,320, excluding any other applicable costs.
Independent condition reports to protect both parties
In Monaco, check-in and check-out condition reports may be entrusted to a judicial officer (huissier de justice) or an independent professional. Their involvement helps provide a neutral and accurate record of the property’s condition, in the interests of both landlord and tenant.
The check-in report describes the property when the keys are handed over. The check-out report allows its condition to be compared and any damage to be identified. Detailed descriptions and photographs help prevent disagreements.
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