The bill originates from Proposition de loi n°265, adopted by the Conseil National in November 2024, and has now been transformed into a Government bill. Its stated objective is to provide Monaco with a coherent long-term framework for land use, development, infrastructure, urban planning, environmental protection and quality of life.
For property owners, investors and family offices, however, the implications of such a future law, if adopted, are important. The Government text also includes provisions that would modernise and potentially broaden certain land-control mechanisms, including State pre-emption, rights of relinquishment and expropriation.
A new strategic planning framework
The SDDA would be composed of several elements, including a forward-looking territorial report, a strategic development plan and an action programme. Once adopted, the SDDA would be approved by Sovereign Ordinance and published in the Journal de Monaco.
This would give Monaco a formal framework for coordinating public policy in relation to land development and urban planning. In a jurisdiction where available land is extremely limited and real estate values are high, such a framework is likely to be of considerable practical importance.
Pre-emption: an existing concept, but a potentially broader regime
Monaco already has certain pre-emption rights. Existing regimes may apply in specific contexts, including some residential premises and cases where the authorities consider that a declared price is insufficient.
The significance of Projet de loi n°1126 is therefore not that it introduces pre-emption for the first time. Rather, the bill appears to create a new planning-linked regime connected to the SDDA and to modernise the State’s ability to intervene in certain property transactions.
The draft regime may apply to assets situated in areas identified under the SDDA, including reserved areas or reinforced study sectors. In specified cases, the State could have the opportunity to acquire the relevant asset before a proposed transaction is completed.
Importantly, the proposed regime may not be limited to direct sales of real estate. It may also apply to certain transactions involving property-owning civil companies, including transfers of a majority of shares or transactions resulting in a purchaser acquiring majority control of a company holding relevant real estate assets.
This is a particularly important point for Monaco family offices and private clients, as Monaco real estate is often held through civil companies or other family-owned structures.
Impact on private wealth and structuring
If adopted in its current form, the bill could have practical consequences for:
- acquisitions and disposals of Monaco property;
- transfers of shares in property-holding civil companies;
- intra-family gifts and reorganisations;
- succession and estate planning involving Monaco real estate;
- due diligence on real estate assets;
- transaction timetables and completion conditions; and
- valuation and negotiation strategy where a pre-emption right may apply.
For trustees, corporate administrators and family offices, the key point is that future transfers involving Monaco real estate may require not only tax and legal review, but also specific urban-planning and pre-emption analysis.
Legislative scrutiny ahead
The Conseil National has already indicated that it will examine the Government’s additional provisions with vigilance, particularly in light of their potential impact on property rights. The file is currently before the Commission de l’Environnement et de la Qualité de vie, and the dossier was updated at the end of August 2026 with consultation and advisory material.
Amendments remain possible, and the final balance between long-term urban planning and protection of private property rights will be closely watched.
Rosemont’s view
Projet de loi n°1126 is one of the most important Monaco real estate and planning texts currently under consideration. While it is not primarily a tax or AML/CFT measure, it is highly relevant to HNWIs, family offices, property-owning structures and professional advisers.
Clients holding or acquiring Monaco real estate should monitor the bill carefully and consider whether existing structures, succession plans or contemplated transactions could be affected by the proposed SDDA-linked planning and pre-emption regime.
For more information, please contact consulting@rosemont.mc.
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