Monaco Guide
Buying Property in Monaco: Process and Obligations
Key Figures at a Glance
| Indicator | Value |
|---|---|
| Registration duty | 4.5 % for natural persons and transparent companies, 7.5 % in other cases (Mon Service Public) |
| Notary and fees in total | approx. 6 to 6.5 % (Livein) |
| Income tax for residents | none, except for French nationals (Mon Service Public) |
| Residence | residence card with housing in Monaco and sufficient means (Mon Service Public) |
The Purchase Process
- Purchase offer. Foreigners can acquire property in Monaco without legal restriction. The written offer states the price and conditions such as financing, a survey or approvals (Balkin legal guide).
- Deposit and preliminary contract. The deposit is held in an escrow account until the final deed. Depending on the property, a preliminary contract (compromis) or preparatory deed is signed first (Balkin).
- Notarial checks. The purchase is notarised by a Monegasque notary. The notary checks title, mortgages, easements and the co-ownership rules (Balkin) and must state the cadastral parcels and boundaries of the property in every transfer of ownership (Notaries Ordinance of 1886, Art. 9).
- Deed of sale. The purchase is concluded by public deed (acte authentique) and registered. The acquisition only takes effect against third parties once the deed has been transcribed at the mortgage registry (Conservation des hypothèques) (Civil Code, Art. 1901; Ordonnance-Loi No. 155, Art. 6).
- Registration duty. The rate depends on who buys: natural persons and civil companies registered in Monaco meet the statutory transparency criteria and pay the lower rate (Mon Service Public; Law No. 1.381).
After the Purchase
- Apartments in buildings completed before 1 September 1947 may belong to the protected sector; their letting is subject to Law No. 1.235 (Mon Service Public).
- Please clarify tax consequences in your country of residence, for example Germany, with your tax adviser.
Prices, locations and purchase costs: Real estate in Monaco.
Purchase Costs
Worked example: apartment for €3m, bought as a private individual
| Item | Amount |
|---|---|
| Registration duty 4.5 % | €135,000 |
| Notary and other fees, approx. 1.5 to 2 % | approx. €45,000 to €60,000 |
| Total | approx. €180,000 to €195,000, around 6 to 6.5 % |
When buying through a non-transparent company, the registration duty rises to 7.5 %, €225,000 in the example.
Residence and Taxes
- For the residence card, suitable housing in Monaco, owned or rented, and sufficient means must be shown, among other things (Mon Service Public).
- Residents pay no income tax, except French nationals (Mon Service Public).
- Anyone moving from Germany to Monaco may be subject to extended limited tax liability for ten years (Section 2 German Foreign Tax Act). A move should therefore be discussed with a tax adviser first.
Questions for Your Tax Adviser
- Does extended limited tax liability apply to me?
- Buy privately or through a company, and at which registration duty?
- How is the property treated for inheritance tax?
Who Does What
- Monegasque notary: checks, deed of sale, registration and transcription
- Bank: escrow account, financing, source of funds
- Sûreté Publique: residence card
- Agent: property, documents, negotiation and coordination
Overview, no legal or tax advice. Before signing, please involve a notary or lawyer in the country concerned. Figures with source and date; figures marked “approx.” and worked examples are non-binding estimates.