The advantageous tax system for Monaco residents, highest security, fabulous climate, excellent schools and the chic lifestyle make Monaco a very desirable destination for both private buyers, who plan to become Monaco residents, and investors, who plan to establish their business here.
Purchasing a property in Monaco is very transparent and straightforward with no restrictions for foreigners. The deal is normally closed within 1 or 2 months and here are its main 3 steps:
1. THE OFFER LETTER – OFFRE D’ACHAT
A negotiation starts with a written purchase offer, outlining the purchase price, as well as a date by which the purchaser endeavours to move toward exchange. It is normally accompanied by a deposit of 10% (through a bank cheque), which is kept by the Notary once the offer is accepted.
2. A PRELIMINARY SALES AGREEMENT – COMPROMIS/PROMESSE DE VENTE
With everything agreed, the Notary prepares the purchase contract or ‘Compromis de Vente’. This will provide a completion date, typically in a week to a months’ time, to allow the Notary to complete the file and relevant searches. The ‘Compromis de Vente’ is typically accompanied by a 10-20% deposit entrusted to the Notary and held in Escrow. The parties may decide, however, to skip the ‘Compromis’ or ‘Promesse’ and go directly to completion.
3. THE COMPLETION – ACTE DE VENTE
Completion of the sale takes place at the Notary’s office with payment of the balance. Notary’s fees and transfer taxes are also all due at this stage and costs are born by the buyer. Once the ‘Acte de Vente’ is signed, the Notary will transfer the funds that would have been already deposited into their account, and register the new owner at the registry of deeds, together with any mortgage.
* The Notary’s role is to ensure the letter of the law is applied and that the interests of both parties, relating to the sale and purchase are protected. The Notary undertakes the relevant searches and highlights important factors such liens, right of ways and planning discrepancies, as appropriate and also ensures the title is passed onto the new owner.
THE PURCHASE COSTS:
- Real Estate agents 3% (plus 20% VAT) of purchase price to be paid by the buyer
5% (plus 20% VAT) of purchase price to be paid by the seller
- Notary fees including property registration tax & title registration:
– approx. 6% of the property value (if the property is purchased by a person or a Monaco “Société Civile” owned by physical persons)
– approx. 9% if the property is purchased by other types of companies or by foreign companies
THE THREE NOTARIES OF PRINCIPALITY OF MONACO:
Aureglia-Caruso Nathalie – Postal Address: 4 boulevard des Moulins 98000 Monaco – Tel. 93 10 60 60 – Fax. 93 30 50 54
Crovetto-Aquilina Magali – Postal Address: 31 Boulevard Charles III, 98000 Monaco Tel. 93 50 54 13 – Fax. 93 30 56 73
Henry Rey – Postal address: 2 rue Colonel Bellando de Castro, 98000 Principality of Monaco Tel. 93 30 41 50 – Fax. 93 30 05 22
INHERITANCE TAX RATES
- In direct line of descendance: 0%
- Between brothers and sisters: 8%
- Between uncles and nephews: 10%
- Between relatives: 13%
- Between non-relatives: 16%
AVERAGE PRICES THAT VARY GREATLY DEPENDING ON THE LOCATION AND THE PROPERTY STATE:
Studios from € 1,500,000 to € 2,500,000 – avg size 30 sq.m.
1 bedroom from € 2,500,000 to € 5,000,000 – avg size 80 sq.m.
2 bedroom from € 3,200,000 to € 7,000,000 – avg size 120 sq.m.
3 bedroom from € 5,000,000 to € 15,000,000 – avg size 165 sq.m.
4 bedroom from € 15,000,000 to € 35,000,000 – avg size 260 sq.m.