General information on beginning the search / Where would you like to buy real estate?
House or apartment?
New building or old building?
What does the price of the object depend upon?
Who is your negotiating partner for acquisition?
The current market situation on the Cote d’Azur
Acquisition of an old building / Viewings / Appraisals
Preliminary Contract ( „avant contrat“)
Role of the notary / „acte authentique“
Additional expenses for the purchase („frais de notaire“ or „frais d’acte“)
Purchase of a new building
Purchase of land
Financing
Foundation of a S.C.I. („société civile immobilière“)
Purchase on the basis of pension („viager“) as a special form of property acquisition of real estate
Taxation of the gain („plus value“) from sale
Right of succession
Monaco
Conducting a sale / Preparations for the sale
SELLING A PROPERTY / USING AN AGENT?
SELLING A PROPERTY / PREPARING THE PROPERTY FOR THE SALE
Landing stage for your boat: Buy or rent?
Monaco

1. General information



The princedom of Monaco covers a base area of 195 ha. It has a length of 3,3 km (!) and a width of 0,6 km (!!). It is a constitutional monarchy and member of the United Nations. The constitution dated 12.17.1962 is the foundation of this constitutional ancestral monarchy and gives the princedom the status of a constitutional state.

The census of 1990 determined 30.000 residents of which 80% were foreigners of diverse ancestry. The official national language is French. In business life English and Italian is also very often spoken. Official currency is the Euro.

The government of the princedom has attempted particular efforts regarding security. Hence today Monaco arguably belongs to one of the safest spots in the world.

The economy of the city state is supported by several pillars: tourism (individual tourism, seminars, conventions and international exhibitions), industry (adds up to approx. 10% of the princedom’s turnover), trade, service sector and here in particular the bank sector (approx. 50 banks and credit institutions / specialty: asset management).

Taxation:



- Income tax: Is nonexistent in the princedom with the exception of French citizens who have relocated to Monaco after 1.1. 1957.

- Capital transfer tax: The Monacan legislation does not arrange for taxes for direct inheritances and bestowals between spouses. In all other cases a capital transfer tax is charged differing according to degree of kinship.

- Purchase tax: Due to the French-Monacan customs union the same rules apply for the taxation of turnover in the princedom as in France. Therefore the purchase tax also accrues for the construction and the sale of real estate. No purchase tax accrues for buildings which have been completed for more than 5 years or which have already been sold to a person against payment within the first 5 years since its completion who has not acted as a commercial property agent („marchand de biens“).

- Profit tax: The taxation system implemented in Monaco is particularly attractive: Companies which execute more than 75% of their turnover in the princedom do not pay profit tax. For companies which execute at least 25% of their turnover outside of the princedom a profit tax is charged.

- Registry and stamp fees are due for registration of certain legal transactions such as e. g. 6,5% on the sale of real estate.



The provisions for an establishment in Monaco cannot be individually described here. Here the consultancy of the Monacan authorities is required.



2. Real estate purchase in Monaco



The purchase procedure is almost identical to the one in France (see there) however there are some particulars:



- patios and balconies are regarded as living area to 100% and paid for accordingly.

- In Monaco the real estate agents’ commission is regulated differently than in France: The seller pays 5% and the buyer 3%.



The real estate prices are considerably higher as in the surrounding country of France, often a multiple of them. The offers are limited due to obvious reasons. And they are also scarce because a large amount of real estate in Monaco is bought and leased for investment purposes.