Answer ... Monaco is becoming increasingly globalised, as the number of foreign residents continues to rise. In 1982, Monaco had about 27,000 foreign residents; by 2016, this figure had soared to over 37,000, according to statistics provided by the Institut Monégasque de la Statistique et des Études Économiques. (On 31 December 2021, the population was estimated at 39,150, according to Ministerial Order 2022-201 of 19 April 2022; and on 31 December 2022, the population was estimated at 39,050, according to Ministerial Order 2023-220 of 21 April 2023.) In 2016, only 8,378 residents of Monegasque nationality were counted. In the same 2016 census, 139 nationalities were listed among the residents living in Monaco.
The growing number of foreign nationals looking to set up in Monaco led the Monegasque Supreme Court, in a decision of 12 July 2022, to clarify one of the criteria for Monegasque residency – in particular, for residents looking to renew their resident permits. It confirmed that persons looking to set up in Monaco must apply for a resident permit if they remain in the principality for over three months. It is not a strict requirement for residents looking to renew their permit to have been effectively living in Monaco for a minimum of three months during the year prior to their renewal request. However, when considering whether to renew a resident’s permit, the authorities can take into account the necessity of the permit and whether the applicant is likely to remain for at least a minimum of three months in the principality in the coming year (if not, the resident permit may be deemed unnecessary and the authorities could refuse to issue it). In doing so, the authorities can consider whether a resident applying for renewal lived effectively in the principality for at least three months in the past year.
The demand for Monegasque residency is also reflected in its buoyant property market. This is why a proposal for a new law on the regulation of the profession of real estate property traders (Law Proposal 252), whose activity involves purchasing, renovating and reselling real estate property for a profit, was adopted on 10 May 2021. The new law aims to regulate the exercise of that profession and ensure that profits made by property traders are appropriately taxed.
Thus, aware of the positive effects that the proposed provisions could have in terms of budgetary revenue and limiting the risk of speculation in the principality, the government, in accordance with Article 67 of the Constitution, informed the National Council, in a letter dated 22nd October 2021, of its decision to transform this proposal into a bill, thus attesting, with the Assembly, to the interest of regulating the activity of property dealers in the principality. This bill was studied by the National Council on 9 May 2023 and the amendments were approved.
The growing recognition of the importance of gender equality and LGBTQ+ rights worldwide has also had an impact on Monegasque law, which is being modernised in this regard. In an unprecedented decision issued on 4 July 2022, the Monegasque First Instance Tribunal legally recognised the change in gender of a transsexual French-Monegasque dual national. In a recent decision dated 28 September 2023, the Appeal Court also confirmed a first-instance judgment granting recognition in Monaco of a same-sex marriage concluded abroad. However, there is still progress to be made regarding the recognition in Monaco of the rights of same-sex couples married abroad, who do not enjoy the same rights as heterosexual couples – specifically concerning inheritance tax or reversionary pension.
Law 1.523 of 16 May 2022 regarding the promotion and protection of women’s rights has already had a major impact on the law. Indeed, many legal texts – including articles of the Civil Code – were reviewed to remove any references and laws deemed sexist. For instance, the ‘waiting period’ which was required of divorced and widowed women before they could legally remarry has been scrapped.
Finally, in order to promote the attractiveness of the Monegasque art market, Bill 1.526 of 1 July 2022 and Sovereign Order 10.300 of 22 December 2023 has updated the rules previously applicable to the artists’ resale right. This text broadens the scope of works covered (plastic, artistic, literary, scientific, audiovisual and digital works) to include works created by the artist themselves or under their responsibility in limited quantities, such as bronzes, signed photographs and original manuscripts of writers and composers.
Law 1.526 has increased the duration of the protection of the resale right on behalf of artists post-mortem from 50 to 70 years, thus standardising the Monegasque duration of protection with the duration of protection in force in the European Union under the Artist Resale Right Directive (2001/84/EC).
Artists have also been given the opportunity to transfer their resale right for payment or free of charge, by will or bequest, within the limits of the respect of the reserved portion awarded by law to their heirs, allowing artists to dispose of this economic right within the framework of their estate planning.
The current private client landscape in Monaco is inherently international due to the high percentage of foreign residents in Monaco (75%). It will be interesting to see how these societal and cultural changes continue to shape the private client landscape and Monegasque private international law.