Buying real estate in Monaco - what you should know

The Principality of Monaco covers a land area of less than 200 hectares. This is certainly one reason for the comparatively small number of available properties. Undeveloped land is practically impossible to buy on the open market. It goes without saying that you will have to dig deep into your pocket even for a small apartment.

For several reasons, the Principality of Monaco has been witnessing a great deal of real estate activity for years. This is mainly due to the number and importance of privileges that a real estate purchase brings with it. Since real estate is scarce due to the limited nature of the country, there is no lack of speculators.

France and Monaco - Currency and Customs Union

The Principality of Monaco is surrounded by France. Both states are united by a centuries-old tradition. Many laws are similar. Although the Principality is not part of the EU, there is a monetary and customs union with France.

Income tax does not apply to you as a resident with an EU passport, with the exception of French citizens. Monegasque laws provide for tax exemption for inheritance and gifts between spouses, for example.

For turnover taxation, the same regulations apply in the Principality as in France. VAT is therefore due on the construction and, in some cases (purchase of undeveloped land), on the purchase of real estate.

Buying real estate in the Principality - special features

Real estate prices are much higher compared to France. Often they are many times higher. However, those who buy an apartment or house in the Principality, almost easily obtain a residence with a residence permit in addition.

Quite a few properties in Monaco are also purchased for the purpose of investment and then rented out. French people often buy with the aim of taking advantage of the inheritance regime.

When buying real estate in Monaco, the purchase process is largely the same as in France. However, you should be aware of some peculiarities. For example, terraces and balconies are considered 100 percent living space. The payment is made according to the determined total area.

The actual transfer of the property does not take place with the entry in the land register, but already with the signing of the purchase contract at a Monegasque notary. You as the buyer are responsible for notary fees and registration/registration fees.

The commission for real estate agents differs from that in France. While here the buyer pays six percent of the purchase price, in Monaco the seller usually pays five percent and the buyer three percent.

Monaco's tax laws do not provide for any special recurring taxes on real estate ownership. You do not pay real estate or land taxes.

If you sell your property at some point for a profit, there is generally no tax for individuals.

If you sign a lease, there is a registration fee. However, this fee is paid by the tenant. It is one percent of the annual rent plus operating costs.