Commercial real estate guide

 

In addition to residential real estate, our team also offers you its services in commercial real estate. This market includes all real estate assets allocated for commercial and professional use (shops, restaurants, warehouses, factories, offices, etc.).

Our team, with its strong legal, commercial and accounting skills, will assist you throughout your project, from the creation of your business to the move into your premises, and will allow you to take advantage of its extensive network within the local economic fabric as well as with the various administrations.

Several possibilities, depending on the type of activity you exercize, may be available to you in Monaco.

  • Acquisition of commercial/industrial premises. The purchase process is classic, you just have to be vigilant about the regulations in force in the building and in the Principality concerning the exercise of the activity planned.
  • Rental of premises. In this case, there are several possibilities:
    • With commercial/industrial property, the lease will be subject to Law n. 490 of 24/11/1948, modified and completed by Law 1 287 of 24/11/1948, concerning leases for commercial/industrial or artisanal use, concluded for a period of 3,6,9 years. A key money will certainly be requested before entering into the premises, unless the entry takes place as a result of taking over the leasehold or after having bought the business of the occupier. If the activity changes compared to the one exercised previously, an indemnity may be requested by the owner of the premises.
    • Without the commercial/industrial property:
      • A tenancy at will, for a maximum period of 35 months with the obligation for the tenant to leave at the end of this period because beyond the commercial property would be acquired and the contract requalified as a lease.
      • A licence : the contract, for a fixed term, is governed by the Law n°546 of 26/06/1951 and is established with the operator of the business, subject to the authorization of the owner of the premises. It can be transferred in part or in whole.

Be careful, it will be important to make the distinction on which type of land (State, municipal or private) the premises are registered. Indeed, if the premises are part to the State or municipal estate, a tenancy at will contract will only be possible, without the commercial property and therefore with a possibility of cancelation from the landlord at anytime.

  • Acquisition of professional premises. The purchase process is classic, you simply have to be vigilant about the regulations in force in the building and in the Principality concerning the exercise of the activity planned.
  • Rental of premises. In this case, there are several possibilities:
    • Lease for office use subject to the Law n°1.433. The tenant can, to this extent, receive customers in the rented premises but no goods can be delivered or stored, and where no commercial or industrial activity can be carried out. The rental price is freely fixed, the duration is at least equal to five years, renewable by tacit agreement for an equivalent period. The lessee may, at any time of the contract beyond the 1st year, terminate the lease with a 6-month prior notice period, whereas the lessor may only give notice at the end of the lease.
    • Lease for office use not subject to the Law n°1.433, when the parties have contractually decided not to submit to it. The conditions related to the price, the duration, the notice period and the conditions of exercise of the activity are free.
    • Shared offices, under certain conditions, also according to the needs of the company; several formulas are proposed according to the legal form and the nature of the activity in particular.
  • Sale of leasehold rights:
    • Notary fees of 0.7% on the amount of the sale + administrative costs
    • Registration fees of 1% on the amount of the sale
    • Mandatory publications in the Journal de Monaco (several hundred euros)
    • Possible credit charges and collaterals
  • Transfer of business:
    • Notary fees of 1.5% on the amount of the transfer + administrative costs
    • Registration fee of 6% on the amount of the transfer
    • Mandatory publications in the Journal de Monaco (several hundred euros)
    • Possible credit charges and collaterals
  • Duty of 1% on the transcription of deeds involving a change of ownership when these transactions are subject to VAT.
  • For the purchase of commercial premises or walls, the standard costs will be applied. You will find them in our buying guide.

For the acquisition of premises or the purchase of business assets or leasehold the buyer will have to pay the agency commission corresponding to 3% + VAT, i.e. currently 3.6% including tax, based on the price of the transaction.

For rental, an agency commission of 10% + VAT, i.e. currently 12% including tax, will be calculated on the amount of the rent for the first year only.

Our team is at your disposal to help you make your professional project real and will give you the benefit of its expertise in this area.