Buying property in Monaco: from A to Z


Monaco is a country with exciting Formula 1 car racing, luxurious resorts and amazing aristocratic castles. In winter and summer, the Principality welcomes residents of the entire planet into its penates.

Today we will talk about the features of buying real estate in Monaco, the stages of the procedure, taxation and expenses. First of all, the article will be useful to potential buyers planning to change their residence, open a business, and also apply for a residence permit in Monaco.

Specifics of buying real estate in Monaco

The independent state on the Cote d’Azur is famous for its favorable climate, thriving economy and transparent taxation system. More than half of property owners in Monaco are foreigners who rent out their properties at a profit. The legal framework of the Principality does not contain restrictions on the purchase of real estate; the only obstacle is the lack of land for development, associated with the small size of the state.

Purchasing real estate in Monaco is characterized by absolute safety in the purchase and sale of objects and subsequently allows you to obtain citizenship of the principality (after 10 years of continuous possession of a residence permit).

You can purchase real estate in any area of ​​the state, except Monaco-Ville, where the princely residence is located.

The most popular properties for purchasing real estate in Monaco:

  • apartments and villas;
  • studio apartments;
  • commercial real estate;
  • penthouses and townhouses.

Buying real estate in Monaco: stages and features of the procedure

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A foreign citizen can purchase any real estate in the Principality of Monaco. A notary is appointed by princely decree and has the right to certify legal acts.
The acquisition process is carried out in several stages.

Stage 1. Opening a bank account and selecting an object

To obtain a residence permit in Monaco, a potential buyer of real estate must deposit at least €100,000 into the account of any bank in Monaco.

Stage 2. Submitting an offer and making a deposit

After selecting an object, an offer to purchase real estate in Monaco is drawn up, indicating the conditions (price, date of signing the contract, etc.). The deposit is 10% of the cost of the property, and is deposited into a separate account of the real estate agency. In addition to the deposit, the buyer provides the seller with a written statement – a document officially confirming the intention to purchase the property.

The application for the purchase of real estate in Monaco provides the following information:

  • application validity period;
  • information about the identity of the buyer;
  • description of the property indicating its value;
  • amount of notary fee and agent commission.

It is important to remember: The buyer loses the deposit if, after making it, he refuses the transaction.

Stage 3. Booking agreement

The “Contrat de Reservation” document assigns the buyer the right to purchase a specific property for a specific period of time.

Stage 4. Preliminary agreement

Before concluding this agreement, the seller provides the buyer with documents on the technical condition of the object. The conclusion of the preliminary contract “Compromis de Vente” is made after agreement and approval of the cost of the object. The document specifies the price of the object, terms of purchase, payment schedule, as well as detailed information of the parties.

Stage 5. Studying the history of the object

The stage includes a thorough notarial verification of the property for the absence of debts and legal purity.

Stage 6. Main agreement

The conclusion of the purchase and sale agreement “Acte de Vente” is carried out in the presence of a notary and regulates the right to own the object after payment of the remaining amount for it.

Registration of the owner of the property is carried out by a notary at the registration office. Then the object is insured by the new owner, at his expense. Comprehensive insurance is a mandatory procedure, since the property owner bears full responsibility for any damage that may occur on the premises.

In the case of purchasing real estate together with friends or relatives, a beneficial option for potential buyers would be the creation of a “Societe Civile Immobiliere” – a civil society for the collective acquisition of real estate.

Package of documents for purchasing real estate

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A potential buyer of real estate in the Principality must provide certain documents to the notary’s office. Scroll:

  • identification documentation – copies of passports, birth certificates, marriage certificates, divorce certificates, etc.
  • documents confirming the country of permanent location (residence).
  • copy of visa or residence permit.

License from the administration – in case of purchasing commercial real estate.

Costs when buying property in Monaco

When purchasing property in Monaco, the buyer will have to pay a number of fees.

  • Registration tax (“Droit d’enregistrement”) – 4.5% of the value of the property.
  • Notary costs – 1.5-2.5% of the cost of the property.
  • Realtor commission – from 3% of the cost of the property.
  • VAT – 20% of the cost of the object.

When purchasing a new building, VAT is usually included in the price of the property.

Additional expenses are paid to the notary – they include the cost of his services and state fees. If the property belongs to the primary market, the buyer of real estate in Monaco will have to pay 2-3% of the transaction amount, if it belongs to the secondary market – 6-7%. At the same time, the agency commission (4-5% of the transaction amount) is already included in the price of the property.

Taxes after purchasing property in Monaco

The Principality has no capital gains tax on resale and no corporate income tax. There is also no income tax or tax on additional capital in the state. For individuals, there is an inheritance tax, the rate of which varies depending on the degree of relationship: children and grandchildren, as direct heirs, are exempt from taxes, brothers and sisters pay 8% of the amount of inherited capital.

Payment of taxes on inheritance and gift of real estate is carried out only by residents of the Principality.

Buying real estate in Monaco is the optimal solution for everyone who wants to immerse themselves in the stunning atmosphere of the eternal holiday and excitement of Monte Carlo, enjoy a relaxed holiday in the resorts of the Ligurian Sea, and also profitably invest in real estate, the value of which is estimated to be the highest on the international market.



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