Buying property in Monaco

Who can buy in Monaco

Monaco is small in size but popular for its luxury lifestyle and beautiful Mediterranean location. There are no restrictions on who can buy property in Monaco, regardless of whether you’re an EU or non-EU resident.

Monaco offers a residency programme, also known as a ‘golden visa’. This requires proof that you rent or own property in Monaco, that you have at least €500,000 in a Monaco bank account, that you have sufficient ongoing income, and that you have a clean criminal record.

The buying process in Monaco

• Once you’ve identified the property you wish to buy, put your intention to purchase in writing, known as an offer letter or ‘offre d’achat’.
•  The offer letter is legally binding and outlines the purchase price, the validity period of the offer, and a description of the property.
• Once accepted, the notary draws up the preliminary purchase contract, called a ‘compromis de vente or promesse de vente’.
• This outlines certain conditions that must be met; otherwise, the buyer can withdraw from the sale without penalty. Some of these include securing a mortgage, access rights issues, and planning permission.
• Once signed, there is a 10-day cooling-off period, after which a deposit, usually 10% of the purchase price, is paid into the notary’s escrow account.
• The property may be subject to the government’s pre-emptive right to purchase and must be sold after one month or upon waiver of those rights.
• Completion of the sale takes place at the notary’s office, and the rest of the purchase balance is paid, plus the notary fees and transfer taxes.
• Once the ‘acte de vente’ is signed, the notary registers the new owner with the land registry.

Fees and taxes in Monaco

• Registration duty for an existing property purchased by an individual or a company in Monaco is 4.75% of the purchase price, with a notary fee of 1.5%.
• If a foreign company purchases the property, the registration duty increases to 7.5%, plus the notary fee of 1.5%.
• The duty rises to 10% for transactions involving entities whose beneficial owners aren’t individuals or entities whose individual beneficial owners aren’t disclosed.
• When buying real estate owned by a foreign company, the buyer must pay a 4.5% registration duty on the property’s value.
• If the property is a new build or under construction, a 20% VAT is due in lieu of the registration duty, plus a 2.5% notary fee.
• Additional costs may be levied based on the complexity and length of the ‘acte de vente’, as well as whether further financing is involved.
• Agents’ fees for buyers are 3% of the purchase price, plus 20% VAT and 5% for sellers.