Note on purchase procedures, immigration and tax in Monaco
The following note has been prepared by Monaco Villas to assist potential residents of the Principality of Monaco, and should be read in conjunction with advice to be taken from Professional Financial Advisers, as individual circumstances may vary from one person to another.
The purchase and sale market in Monaco is almost entirely controlled by the agents. The procedure is not complicated. And a purchase can be made very quickly indeed. There is no need to be a citizen of, or resident in, the Principality to buy property in Monaco. Property can be acquired in the name of a foreign company if required. Advantages of doing so can be elaborated upon.
The procedure and costs involved are as follows :
- Once a suitable property has been identified and a price agreed, a "Compromis de Vente" is entered into. This document is binding on both seller and buyer to complete the deal, subject to the conditions contained in it. Normally it will contain a date at which the "Acte de Vente" is to be signed and the transfer takes place. This document is a Notarial Deed, and constitutes the transfer of title.
- On signature of the Compromis de Vente, a 10% deposit is normally lodged. This will normally be held by the agent or by the Notaire. The balance of the consideration (90%) is due on the date of signature of the Acte de Vente. In the event that the property is owned by a company and the purchaser buys the company rather than the property itself, then the procedure is slightly different, being normally undertaken by a local lawyer well versed in such matters.
- Other fees due at that time by the buyer are as follows:
a) Agents fees of 3% of the price, plus TVA on the fee at 20%
b) Registration/Notaire fees, usually 6% of the price plus ~ €250 but can be lower in certain circumstances, including where a company rather than a property itself is being acquired.
- The new owner may use the property himself, lend it, rent it or just wait until the market moves. There are no restrictions as to its occupancy other than those contained in the statutes of the building of which it forms part, and the obvious forbidding of any illegal activity.
As far as the market itself is concerned, both the rental and sale markets are very tight owing to an unprecedented demand for residence in Monaco currently being experienced. Any good apartment offered at a correct sale price goes almost immediately. Therefore, it is recommended to fix a date to visit Monaco for a day or so at which time Monaco Villas can present a selection of apartments which fit your requirements. However, to give an idea, a 2 bedroom apartment will cost around €3,000,000 - €8,000,000 . Obviously there are apartments above these prices also. It depends on the location, availability of parking space, size, view etc..
We can also assist, or recommend others even more specialised in the task, in the submission and follow-up of applications for residence in Monaco. These are relatively simple for citizens of EU countries and we can certainly discuss the details of formalities to be followed when you come to Monaco. It is essential to have an address in Monaco before applying for residence.
There is no Income or Capital Gains tax in Monaco. Also, if set up correctly, there is minimum or no Inheritance or Corporation tax. More advice on this topic can be obtained, once individual circumstances are known.