Principle
A Compensatory Rent Allowance is paid to the persons referred to in Article 32 of Act No. 1.235, amended, i.e. to those who own in their own name or through a company or on the basis of usufruct one or more residential premises subject to the provisions of this act, where each of the premises was purchased before 25 December 2004. The allowance is also paid to persons who have received through an inheritance or a gift one or more of the abovementioned assets subsequent to 25 December 2004, provided that the inherited or gifted premises were purchased prior to this date.
Conditions
The allowance can be paid to:
- Natural persons owners (including with joint ownership up to the share of the jointly held interest in the relevant premises) or usufructuaries of the relevant premises
- Legal entities registered in Monaco which are owners or usufructuaries of one or several residential premises as described in Article 31 of Act 1.235, amended
Natural persons who own in Monaco, in their own name or through a company or on the basis of usufruct, residential premises with a total surface area of more than 500 square metres are not entitled to this allowance. Natural persons who are entitled to the allowance may apply for it in relation to a maximum surface area of 300 square metres.
How the allowance is calculated
The Compensatory Rent Allowance is calculated and paid to the beneficiary according to the conditions set out in Ordinance No. 9.000 of 17 December 2021
The calculation of the average rent per square metre of dwellings built or completed before 1 September 1947 takes account of the following:
- Leases registered with the Department of Tax Services during the previous calendar year for dwellings not subject to the provisions of Act No. 1.235 of 28 December 2000, amended, and Act No. 887 of 25 June 1970, amended
- Leases registered with the Department of Tax Services for new rentals in the previous calendar year for dwellings subject to the provisions of Act No. 1.235 of 28 December 2000, amended
Amount
The average rent per square metre for premises built or completed before 1 September 1947, determined in accordance with Article 2, is published on an annual basis by Ministerial Decree: Ministerial Decree no. 2025-64 of 30 January 2025 du 30/01/2025 pertaining to the average rent per square metre provided for in article 31 of Act no. 1.235 amended