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. See the Ministerial Decree

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

• A copy of a valid applicant’s identity document
• If an application is submitted on behalf of a third party, where authorised (guardianship, curatorship): 
  • A copy of a valid beneficiary’s identity document
  • A copy of the judgment relating to beneficiary protection measures
• A brief summary of informal records issued by the mortgage registry, updated for premises owned by the applicant in their own name and/or through a legal entity operating under Monegasque law
• If the recipient of the allowance is a legal entity operating under Monegasque law: a copy of the legal entity's articles of association and any addenda, dated within the last three months, noting the allocation of shares
• A sworn statement in accordance with the template issued by the Housing Department, which is available to download below:
  Déclaration sur l'honneur ACL

  PDF442.2 kB
• For each property the beneficiary owns in Monaco:
  • A copy of a declaration of ownership stating whether the beneficiary is the owner of the property in their own name, in joint ownership (in this instance, indicate the proportion of their undivided share), through a legal entity (in this instance, indicate the proportion of their share) or whether they hold the usufruct
  • A document drawn up by an accredited professional stating the area of the living space, calculated in accordance with Article 9
  • If the beneficiary is an individual and holds shares in a legal entity that owns one or more properties in Monaco: a copy of the legal entity's articles of association and any addenda, dated within the last three months, noting the allocation of shares
• In addition to the supporting documents noted above, for each premises subject to Act No. 1.235 of 28 December 2000, amended, referred to above:
  • For any premises which is rented on the date of the application: 
    • A copy of the most recent rent receipt
    • 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 
  • For any premises occupied by a close family member, described in articles 16-1 or 35-1 of Act No. 1.235 of 28 December 2000, amended, mentioned above:
    • A copy of a proof of address within the last three months 
    • A copy of a valid identity document for the occupant
  • For any premises unoccupied or vacant: a vacant property declaration drawn up for the premises and, where appropriate, any document that proves that work is being carried out in the premises

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.