How to apply for Compensatory Rent Allowance

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. View the Ministerial Decree

To get this form you can either::

• Download it here :
  Demande d'Allocation Compensatoire de Loyer (362-0034_12-2021)

  PDF960.4 kB
   
• Or collect it from Housing Department

All applications for the allowance must include the following supporting documents:

• The application form duly completed and signed
• A copy of a valid applicant’s identity document
• A short form report on title issued by the Mortgage Registry Office for premises owned by the applicant in their own name 
• A Sworn Declaration in accordance with the template issued by the Housing Department 
• If the applicant owns shares in a legal entity operating under Monegasque law which owns the premises, a short form report on title issued by the Mortgage Registry Office for the premises owned by the legal entity 
• A document drawn up by an accredited professional stating the area of the living space, calculated in accordance with Article 9, of each premises owned by the applicant in Monaco in their own name or through a legal entity operating under Monegasque law 
• A report drawn up by an accredited body in accordance with Ministerial Decree No. 2018-320 of 16 April 2018, confirming compliance with the safety and comfort standards set out in Ministerial Decree No. 2021-796 of 17 December 2021

In addition to the supporting documents noted above and depending on the personal circumstances of the applicant, the latter should produce, for premises subject to Act No. 1.235 of 28 December 2000, amended, referred to above, which the applicant owns in their own name or through a legal entity operating under Monegasque law, the following additional supporting documents:

• Persons who own one or several premises in their own name: a copy of a certificate of ownership drawn up by a notary from the Principality of Monaco for each premises owned;
• Persons who hold joint ownership of one or several premises: a copy of a declaration of ownership, drawn up by a notary from the Principality of Monaco, noting the share of the jointly held interest in each premises owned
• Persons who own shares in one or several legal entities which own one or several premises: a copy of the registered articles of association for each legal entity operating under Monegasque law and any addenda noting the allocation of shares, dated within the last three months

To receive the allowance, the applicant must also produce, for any premises subject to Act No. 1.235 of 28 December 2000, amended, mentioned above, which is rented on the date of the application: 

• A copy of the most recent rent receipt 

When such premises are occupied by a person described in articles 16-1 or 35-1 of Act No. 1.235 of 28 December 2000, amended, mentioned above, the applicant shall produce:

• A copy of a proof of address within the last three months
• A copy of a valid identity document for the occupant

When such premises are unoccupied or vacant, the applicant shall produce the vacant property declaration drawn up for the premises and, where appropriate, any document that proves that work is being carried out in the premises.

Finally, to receive the allowance, the applicant must produce a Certificate of Compliance from an accredited body. All bodies approved in accordance with Ministerial Decree No. 2018-320 of 16 April 2018, mentioned above, may certify compliance with the safety and comfort standards set out in Ministerial Decree No. 2021-796 of 17 December 2021, which implements Article 32-4 of Act No. 1.507 of 5 July 2021, creating the compensatory rent allowance for premises subject to Act No. 1.235 of 28 December 2000, amended.

The body shall draw up a report for each rented premises subject to Act No. 1.235, which shall be valid for three years.

The application must be returned to the Housing Department, duly completed and signed by the applicant and accompanied by the supporting documents listed in stage 2. If these documents are not provided, the application will not be considered admissible.

The cost of producing the documents is borne solely by the applicant.

The Compensatory Rent Allowance is paid by the Housing Department.

Eligibility for payment of the allowance begins on the first day of the month in which the decision to grant the allowance is taken by the Director of the Housing Department.

The allowance is paid at the end of each calendar quarter, for one year, on the basis of the average rents per square metre for dwellings built or completed before 1 September 1947 current on the date the decision to grant the allowance was taken, for the living space that is eligible for the payment.

The recipient of the allowance is required to provide notification of any change in their circumstances or those of the legal entity operating under Monegasque law whose property opens up an entitlement to the allowance, where such changes are likely to lead to the payment of the allowance being suspended, amended or terminated. Such notification must be made within no more than 30 days of the change occurring.

All applications to renew the Compensatory Rent Allowance must include the following supporting documents:

• A form applying for the renewal of the Compensatory Rent Allowance, duly completed and signed 
  Demande de renouvellement d'Allocation Compensatoire de Loyer (362-0035_02-2023)

  PDF962 kB
• An updated short form report on title issued by the Mortgage Registry Office for premises owned by the applicant in their own name and/or through a legal entity operating under Monegasque law
• A report, dated within the last three years, drawn up by an accredited body, as described in stage 2
• A Sworn Declaration in accordance with the template issued by the Housing Department

In addition, the Housing Department can request any additional documents that may be required to review the application to renew the allowance.