The Principality of Monaco is considered one of the world’s most exclusive destinations with the world’s wealthiest individuals, making a Monaco investment an attractive acquisition.
With over 30% of the principality’s residents millionaires and a significant portion of those Ultra-High-Net-Worth individuals, it boasts an infrastructure designed to cater to the lifestyle and consumer habits of the most discerning individuals.
Not only does Monaco offer a luxury lifestyle coupled with political and economic security, but it also boasts tax-efficient regulations that help protect wealth for future generations. All this and more have made the Principality of Monaco a highly desired destination for investment, with one of the most popular investments being real estate.
If you are considering a Monaco real estate investment, then read on. Here, we explain what international buyers need to know about Monaco, including tips on making a Monaco investment.
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Why Make A Monaco Real Estate Investment?
There are multiple reasons why you should make a Monaco investment in real estate; however, some of the few reasons include:
Prime Location
Monaco is situated on the French Riviera, one of the world’s most prestigious and sought-after locations. Its prime waterfront location, stunning Mediterranean views, and proximity to major European cities from the Nice Cote d’Azur International Airport make it a highly desirable destination.
Stability And Security
Monaco is known for its political stability, low crime rate, and robust legal system, providing a secure investment environment. The principality is also considered a safe haven for investors seeking to diversify their portfolios and protect their assets.
Luxurious Lifestyle
Monaco offers a luxurious lifestyle with world-class amenities, including upscale shopping, gourmet dining, exclusive clubs, and renowned cultural events such as the Monaco Grand Prix and the Monte-Carlo Rolex Masters tennis tournament. Investing in Monaco real estate allows investors to enjoy access to these elite lifestyle opportunities.
A Mild Tax Regime
One of the most significant benefits of investing in Monaco real estate is the favorable tax environment. Monaco has no income tax, capital gains tax, wealth tax, or inheritance tax, making a Monaco investment highly attractive, especially for HNW and UHNWIs investors seeking tax efficiency.
Resilience To Economic Downturns
Monaco’s real estate market has historically demonstrated resilience to economic downturns, with property prices remaining relatively stable even during periods of global economic uncertainty.
A Route To Residency And Citizenship
Investing in Monaco real estate provides investors with a route to residency and citizenship, enabling them to benefit from everything the principality offers.
Monaco Investment, Real Estate Prices
Monaco real estate is considered the world’s most exclusive, with prices to match. Real estate in the city-state is amongst the world’s most expensive, with the average per square metre price in 2023 exceeding 51,000 Euros, according to the 2024 Real Estate Observatory Report. The mean price of Monaco resales now stands at 5.7 million Euros, a rise of 38.1% in the past decade.
Soaring demand and limited land mass continue to drive prices up, making a Monaco real estate investment a highly desirable long-term investment option with wealthy investors.
Types Of Properties In Monaco
Due to Monaco’s limited land mass and soaring demand, almost all properties in Monaco are apartments and penthouses, with villas being exceptionally rare.
Desirable apartments can be found in a wide range of residences, from ultra-modern buildings built by award-winning architects and designers to beautifully Belle Epoque buildings boasting high ceilings, stunning architectural details, and voluminous proportions.
Amenities vary depending on the residence; however, many modern buildings boast luxury amenities such as a swimming pool, fitness area with state-of-the-art gym equipment, concierge services, 24/7 security services, and dedicated underground parking.
Some of the most in-demand properties among wealthy individuals seeking to make a Monaco real estate investment include new developments such as One Monte-Carlo and L’Exotique, and the soon-to-be-completed Bay House and Mareterra, a brand new eco-district set to create new standards in luxury living.
Best Districts For A Monaco Real Estate Investment
The Principality of Monaco comprises seven districts, each with its own sense of community and unique atmosphere. The district that is ‘best’ will depend on each individual investor.
Monte-Carlo, especially around the highly exclusive Carre d’Or, is considered one of Monaco’s most desirable areas, providing immediate access to the best restaurants, designer boutiques, resorts, and service providers. According to the recent Monaco Real Estate Report, Monte-Carlo was one of the most popular districts, accounting for 30.7% of all real estate transactions in 2022.
Larvotto is also a highly popular district, especially for families, thanks to its safe and family-friendly Larvotto Beach. Reflecting its exclusivity, in 2023, Larvotto recorded the highest price per square metre at 65,857 Euros.
Other sought-after districts with international buyers looking to make a Monaco investment include Fontvieille, La Condamine, La Rousse, and L’Exotique.
The Buying Process For International Investors
The buying process for international investors is relatively simple. The first step is to contact a reputable Monaco real estate agency, which will not only assist with finding your ideal Monaco investment but will also support and guide you throughout the entire property acquisition process.
The best Monaco real estate agencies are members of the prestigious “Chambre Immobilière de Monaco” and will have access to the best properties for sale, including off-market properties.
Once you have contacted a real estate agent, they will listen to your needs and shortlist a selection of relevant properties, setting up viewings at a time that suits you.
Once you have decided on a property you wish to invest in, the process is relatively simple, with the steps including:
– Submit a written offer
– Appoint a Notary in Monaco
– Sign a legally binding pre-contract, known as the Compromis de Vente
– Conduct land registry searches
– Pay the final fees and sign the final documents to transfer the deeds
– Register ownership
Monaco Investment Financing Options
Several financing options are available to international investors interested in making a Monaco real estate investment. These include:
– Financing solutions through private banks and wealth management services
– Traditional mortgages and loans, either from banks and lending institutions in Monaco or from financial institutions in the investor’s country of residence
– Offshore financing, including offshore companies and trusts
– Joint ventures and partnerships with local investors and developers
– Bridge financing or short-term loans, which enable international investors to cover the gap between the purchase of a Monaco property and the eventual sale of another asset
What Taxes Must Be Paid When Making A Monaco Real Estate Investment?
There are several taxes and fees that must be paid when making a Monaco real estate investment. These include the transfer tax or registration tax, which is payable by the buyer upon the transfer of the property. The transfer rate tax is currently fixed at 4.5% of the property’s purchase price. Investors will also need to pay the Notary fees, which are typically around 5% of the purchase price, the real estate agency fees, typically around 5% of the purchase price, and the land registry fee, which is currently 1% of the purchase price. For new build properties in Monaco, the buyer must pay 20% VAT in lieu of the registration tax. There may also be further costs associated with financing.
If you want to make a Monaco investment, contact a reputable real estate agent today and start your Monaco journey.
