Monaco (MC)

Monaco is the world's most expensive and glamorous sovereign micro-state — a 2.

Capital: Monaco

Region: Europe

Language: French

Currency: EUR (€)

Cost of living: Very expensive (index 100)

Emergency: 112

Buying Property in Monaco

The full buying process, transaction costs, mortgage, and legal requirements.

Monaco is the most expensive real estate market in the world by price per square metre, with average prices ranging from €40,000 to over €100,000/m² — a 50 m² studio costs €2–5 million. Supply is structurally constrained in a 2.02 km² territory with virtually no undeveloped land. Despite extreme prices, Monaco property is highly sought after: there is no annual property tax, no capital gains tax for Monaco residents, no wealth tax, and no personal income tax. Foreign nationals can purchase Monaco property freely — there are no nationality restrictions on ownership. All transactions are conducted before a Monaco notaire (required by law). Anti-money-laundering due diligence is rigorously enforced by the AMSF (Monegasque Financial Security Authority, formerly SICCFIN); buyers must document source of funds and source of wealth for all purchases.

Rent vs. Buy

For most Monaco expats, renting is the practical first choice: buying requires €2–50+ million in capital plus 8–11% in transaction costs. Monaco property has been one of the best-performing luxury markets globally due to permanent scarcity. For high-net-worth individuals planning to maintain Monaco residency for 10+ years, ownership offers exceptional after-tax wealth preservation: no capital gains tax on sale for residents (non-French nationals), no annual property tax, and euro-denominated capital. The primary decision factors are available capital, investment horizon, and Monaco residency status.

Buying Process — Step by Step

Engage a licensed Monaco real estate agent

Before anything else

Virtually all Monaco property transactions go through licensed real estate agents (agents immobiliers agréés). Major agencies: John Taylor Monaco, Michaels Group, Engel & Völkers Monaco, Savills Monaco, Miells & Partners, Segond Immobilier. Commission: typically 3% + VAT (3.6%) paid by the buyer in Monaco, or 3–5% split between parties — confirm in writing before engaging. AMSF compliance requirements mean agents must conduct identity and source-of-funds checks from first contact.

Secure financing or confirm funds

4–12 weeks for mortgage pre-approval

Monaco property purchases typically require 30–50% equity. Monaco and international private banks (BNP Paribas Monaco, Julius Baer, CMB, Société Générale Monaco) offer mortgages; all are individually negotiated. Typical LTV: 60–70% for non-residents; up to 80% for established Monaco banking clients. Current rates (2026): Euribor + 1.7–2.5% (variable) or fixed circa 3–4%. For cash purchases, prepare full source-of-funds documentation — required by AMSF AML rules for all large transactions.

Property search

3–18 months

Monaco listings are typically managed exclusively by one agent. Attractive properties can receive competing offers the same day. Conduct due diligence on: building condition, charges de copropriété (service charges), existing tenants, parking and cave (cellar) included, and flood/coastal risk for ground-floor units. The Monaco market is highly illiquid — the right property can take months to appear.

Sign Compromis de Vente (Preliminary Contract)

1–2 weeks after offer acceptance

The compromis de vente is a binding preliminary agreement committing both parties at the agreed price and conditions. The buyer pays a 10% deposit (acompte), held in the notaire's escrow account. A 10-day cooling-off period (droit de rétractation) applies — the buyer may withdraw within 10 days of receiving the signed compromis and recover the full deposit. After 10 days, buyer withdrawal forfeits the 10% deposit; seller withdrawal obliges repayment of double the deposit.

Legal due diligence and notaire preparation

4–10 weeks

The notaire (mandatory for all Monaco property transactions) conducts title searches at the Direction des Services Fiscaux (which administers Monaco's land registry/Conservation des Hypothèques), verifies building permits, checks for liens (hypothèques), and reviews copropriété documentation. For pre-1997 buildings: verify asbestos (amiante) and lead (plomb) reports. A separate Monaco avocat (Barreau de Monaco) can be retained to review the contracts — recommended for first-time buyers and complex transactions.

Sign Acte Authentique de Vente (Final Deed)

1 day

Both buyer and seller (or notarised representatives) attend the notaire's office. The notaire reads the full acte de vente; both parties sign. The balance of the purchase price (90% if 10% was paid at compromis) is transferred through the notaire's escrow account on the same day. The notaire registers the transfer with the Direction des Services Fiscaux (Monaco land registry).

Pay transaction taxes and complete registration

2–4 weeks after signing

Registration fees for resale property: 4.75% registration duty + 1.5% notaire fee = 6.25% total (collected by the notaire). For new-build/off-plan subject to VAT: 20% VAT applies on the purchase price, plus 1.5% notaire fee + ~2.375% registration (50% exemption on new-build VAT transactions since October 2023). Agent commission 3.6% (3% + VAT) is typically buyer-paid. Total transaction cost: 8–11% for resale; higher for new-build due to 20% VAT. The notaire files all registration documents with the Direction des Services Fiscaux.

AMSF/AML compliance and residence card (if applicable)

Concurrent with purchase; residency card: 3–6 months

Full AMSF-compliant source-of-funds and source-of-wealth documentation must be provided throughout the process to the notaire, agent and any mortgage lender. If you intend to reside in Monaco after purchase, apply for a Monaco residence card (carte de résident) — purchasing or renting local property is a prerequisite, along with financial means demonstration and background checks.

Transaction Costs

Cost Item	Amount	Notes
Registration duty (droits d'enregistrement / droits de mutation) — resale	4.75% of purchase price	Applies to resale properties where the purchaser is an individual or qualifying Monaco SCP (Société Civile Particulière). Companies with foreign ownership may face higher rates (up to 9%). Collected by the notaire and remitted to the Direction des Services Fiscaux.
Notaire fees (regulated)	1.5% of purchase price	Monaco notaire fees are regulated. Combined with registration duty: total official cost is 6.25% for resale. The notaire is mandatory for all Monaco property transactions.
VAT on new builds (TVA)	20% of purchase price	New-build and off-plan properties subject to VAT pay 20% TVA + 1.5% notaire + ~2.375% registration duty (50% exemption on registration for VAT-liable transactions, introduced October 2023). New builds are significantly more expensive in total transaction costs.
Real estate agent commission	3% + 20% VAT = 3.6% of purchase price (buyer-pays)	In Monaco, agent commission is typically paid by the buyer. Confirm structure in writing with the agent before engaging. Some mandates split the fee between buyer and seller.
Building survey / technical diagnostics	€1,000–5,000	Not legally required but strongly recommended for older Monaco buildings. Covers structural condition, asbestos (amiante) and lead (plomb) reports — legally required for buildings built before 1997.
Monaco avocat fee (optional legal review)	€2,000–8,000+	A Monaco avocat (Barreau de Monaco) can review the compromis and acte de vente in addition to the notaire. The notaire is neutral — not the buyer's legal advocate. Recommended for first-time Monaco buyers and complex transactions.
Total transaction cost estimate — resale	8–11% of purchase price	Includes registration 4.75% + notaire 1.5% + agent 3.6%. These costs are paid in cash — Monaco banks do not include transaction costs in mortgage financing. Budget at least 10% on top of the purchase price.

The Notary — Mandatory for All Purchases

A Monaco notaire (member of the Chambre des Notaires de Monaco) is mandatory for all Monaco property transactions. The notaire: conducts title searches at the Direction des Services Fiscaux (Monaco land registry), verifies building permits and liens (hypothèques), drafts the compromis de vente and acte authentique de vente, holds all funds in escrow, collects registration duties and notaire fees, and registers the transfer. Notaire fees are government-regulated at approximately 1.5% of purchase price. The notaire acts as an impartial officer of the state — not as the buyer's legal representative. Engaging a separate Monaco avocat (Barreau de Monaco) to review transaction documents is recommended for first-time Monaco buyers.

Mortgage

Monaco banks offer mortgages to Monaco residents and, in some cases, non-residents. All lending is individually negotiated — Monaco banking is entirely relationship-based. No standard mortgage product exists; each deal is structured around the borrower's complete financial profile, existing banking relationship, and asset base. Typical rates (2026): Euribor + 1.7–2.5% (variable) or fixed circa 3–4% p.a. LTV: up to 80% for established Monaco banking clients; 60–70% for non-residents. AMSF AML rules require full source-of-funds and source-of-wealth documentation for all mortgage applications.

Typical Deposit Required

30–50% of purchase price. Non-residents and buyers without an existing Monaco banking relationship typically require 30–50% equity. Established Monaco residents with a strong private banking relationship may secure up to 80% LTV.

For Foreign Buyers

No legal restrictions on foreign nationals buying Monaco property or obtaining mortgages. Non-residents face stricter terms: higher equity requirements (30–50%), more extensive financial documentation, and slightly higher rates. Full AMSF-compliant source-of-funds and source-of-wealth documentation is mandatory for all transactions. French nationals resident in Monaco remain subject to French taxation under the 1963 Franco-Monegasque Tax Convention and should take specialist French tax advice before purchasing.

Recommended Lenders & Brokers

BNP Paribas Monaco — leading private bank with dedicated property financeSociété Générale Monaco — retail and private banking, property mortgagesCompagnie Monégasque de Banque (CMB) — private banking, Monaco property specialistsJulius Baer Monaco — ultra-high-net-worth clients, bespoke property financingHSBC Private Bank (Monaco) — international clients, cross-border structuringCrédit du Nord Monaco — mortgage and retail banking products

Land Registry

Monaco property ownership is registered with the Direction des Services Fiscaux (DSF), which administers the functions of the land registry (formerly referred to as the Conservation des Hypothèques). The official government portal for property and land matters is service-public-particuliers.gouv.mc and en.gouv.mc. Title searches confirm the seller's ownership and reveal any liens (hypothèques) or privileges on the property. A Land and Property Identification Certificate (Certificat d'Identification Foncière et Immobilière — C.I.F.I.) can be obtained through the Monaco public services portal. Records are well-maintained given the small size of the Principality.

Taxes

Monaco property taxes in 2026: (1) Registration duty at purchase: 4.75% for resale properties (individuals/Monaco SCP); higher for corporate buyers. (2) VAT 20% for new builds. (3) NO annual property tax (taxe foncière) — a major Monaco advantage. (4) NO taxe d'habitation. (5) NO personal capital gains tax for Monaco residents (excluding French nationals subject to the 1963 Franco-Monegasque convention). (6) NO personal income tax for Monaco residents. (7) Inheritance tax (droits de succession) applies to Monaco property on death: 0% for direct heirs (spouses, children), 8% for siblings, 10% for other relatives, up to 16% for unrelated persons. Estate planning through Monaco assurance vie or a foundation can mitigate succession tax on large property holdings.

New Build vs. Existing Property

Existing (resale) property: most Monaco transactions are secondary market. Total transaction costs: approximately 8–11% (4.75% registration duty + 1.5% notaire + 3.6% agent). Legal title is straightforward and immediately transferable. New build / off-plan: Monaco has very limited new-build supply — occasional large-scale projects (e.g., the Mareterra marine extension, delivered from 2025) provide rare off-plan opportunities. New builds are subject to 20% VAT plus 1.5% notaire fees plus registration duty at ~2.375% (50% exemption for VAT-liable transactions since October 2023) — making total costs substantially higher than resale. Verify the developer's permits and financial position carefully before any off-plan commitment.

Selling Property

Selling Monaco property mirrors the buying process: engage a licensed Monaco estate agent (commission typically 3% + VAT, seller-pays on French Riviera model, though Monaco practice varies — confirm the mandate terms), sign a mandat de vente, and complete the acte de vente before a Monaco notaire. Monaco resident sellers (non-French nationals) pay zero capital gains tax. French nationals resident in Monaco remain liable for French CGT on Monaco property sales under the 1963 bilateral convention. Non-resident sellers should seek specialist advice on home-country CGT exposure. Any mortgage (hypothèque) on the property must be discharged before completion.

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