Property trader in Monaco: rules and buying a business
Are you considering becoming a property trader, or marchand de biens, in Monaco? This activity of buying for resale is governed by Law No. 1.560 of 2 July 2024 and Implementing Sovereign Ordinance No. 10.745. Monaco Properties can assist your search for an existing property trading business, taking your circumstances and proposed structure into account.
Contact us about buying an existing business
What is a property trader in Monaco?
A property trader regularly purchases on its own account with the intention of reselling. The legal definition covers real estate, business assets known as a fonds de commerce and certain shares in property-holding civil companies; land developers are also included. This differs from acting as an estate agent for another party. The applicable formalities include registration with Monaco’s Trade and Industry Register (RCI).
Requirements under the 2024 reform
- Declaration or authorisation: the relevant procedure depends on the applicant and legal form and must specify the activity “Marchand de biens”. Incorporating a company alone is insufficient.
- Residence and ownership: for authorisation to be granted, Article 3 requires sole traders and SARL managers to be effectively resident in Monaco. For a legal entity, at least 75% of its capital must be held directly or indirectly by individuals who are either Monegasque nationals or, if foreign nationals, effectively resident in Monaco.
- Financial guarantee: an on-demand guarantee of €50,000 in favour of the Treasury is required. The ordinance provides for a two-year term and renewal at least two months before expiry.
- Insurance: professional liability cover must be obtained and maintained through a general insurance agent or broker authorised in the Principality.
Registration duty: what has changed?
For acquisitions made from 1 September 2024, Article 11 provides a 50% exemption from the applicable registration duty for transactions not automatically subject to VAT, provided all the statutory conditions are met. This concerns registration duty; it does not halve all acquisition costs or notarial fees.
- Comply with the specific obligations referred to in Article 11 and file the required tax declaration within fifteen days of RCI registration.
- State in the acquisition deed the intention to resell within three years. A one-year extension may be requested from the competent authority; it is not automatic.
- Undertake in the acquisition deed to demonstrate compliance with applicable standards, particularly electrical and energy standards, upon resale. The ordinance requires certificates less than one year old issued by an approved inspection body in Monaco and supplied to the notary.
For successive acquisitions between property traders, the first purchaser’s deadline continues to apply to subsequent purchasers. Failure to meet the deadline or compliance requirements can trigger additional duty, interest and the supplementary duty provided by law. Ask the notary to calculate costs for the specific property, purchaser and transaction structure instead of relying on a single overall rate.
Acquiring an existing property trading business
Investors interested in becoming property traders in Monaco can contact Monaco Properties about purchasing an existing property trading business through the acquisition of its fonds de commerce. Tell us about your plans, residence situation and intended structure so that we can discuss possible business acquisitions matching your search.
Purchasing a fonds de commerce must be distinguished from purchasing shares in the company operating it. Before committing, review the assets included, outstanding commitments, premises, financial guarantee, insurance and the procedures applicable to the buyer. Article 5 of Law No. 1.144 provides that the authorisation is personal and non-transferable: buying the business does not automatically transfer authorisation to operate. The required formalities should be reviewed with the Economic Development Department and the advisers handling the transaction, according to its structure and legal form.
Discuss your business acquisition in Monaco
Contact Monaco Properties about your business acquisition · info@mpmonaco.com · +377 97 97 33 97 · WhatsApp
Official sources and update
- Law No. 1.560 of 2 July 2024
- Sovereign Ordinance No. 10.745 of 5 August 2024
- Law No. 1.144 of 26 July 1991
Revised on 13 September 2026 using the official legislation in force. The rules applicable to a particular transaction and buyer must be checked against their circumstances.
