Living in Monaco is a wise and enjoyable investment; the principality of Monaco is a true paradise between the Italian and French borders. Whoever comes to visit here has the idea of stepping into a different world. The streets are clean, the luxurious cars have just come out of the showroom, the harbor is filled with the most beautiful yachts and the locals always look well dressed; as if they are on their way to a party.
Living in Monaco
Living in Monaco is perhaps also a party every day; certainly in the field of tax benefits. Anyone who earns well and officially lives in Monaco can save a lot of money here on assets and income tax, among other things. The Principality of Monaco is not part of the European Union and is therefore not automatically subject to European mandates and directives. Due to a tradition of settlement with neighboring France, customs duties and VAT do apply in Monaco. Since 1870, Monaco no longer levies income tax on its residents. This applies to people of Monegasque nationality as well as anyone born outside Monaco. Unfortunately, residents of Monaco with French nationality do have to pay income tax.
However, residents who carry out a commercial or industrial activity whose foreign turnover exceeds 25% of the total turnover are subject to an income tax of 33.33%, including on the income from the activities within Monaco. In addition, companies that receive income from patents or certain copyrights are subject to an income tax of 33.33%. A percentage that is a lot more favorable than the tax payment in other countries.
International population in Monaco
With about 36,000 residents, the residents live close together on just over a square mile on the Mediterranean coast. About 22% of the population is Monegasque, the rest of a cosmopolitan mix of French, Italian, British, and most other European identities, as are American, Australian, African, Russian, and Middle Eastern citizens. The Principality became a full member of the UN in 1993 and a member of the Council of Europe in October 2004 and is therefore certainly not an outsider in the field of international politics.
Monaco is an energetic country where many worldwide meetings, shows, and presentations are held. In addition to traditional events such as the Rose Ball in March and the Red Cross Ball in August, there will be a Super Car show “Top Marques” with luxury cars from 1 million. And of course every year also the Grand Prix of Monaco, the Monte Carlo Tennis Masters, the International Jumping of Monaco and the Monaco Yacht Show.
During Christmas, the boulevard at Porte Hercule is traditionally converted into a Christmas village, with many attractions and stalls selling fresh oysters, champagne and delicious grilled meat. There are even oliebollen sold during Christmas; a reason for many Dutch people in the South of France to visit Monaco. And secretly dream of living here as well.
A residential address in Monaco
It almost goes without saying that the quality of life is at a very high level. Many parents live in Monaco to assure their children of a solid future. And that is self-evident in a society where a lot of attention is paid to a good international education with a lot of involvement at the social level. Think of theater, art and film. Monaco also provides fertile ground for the climate or high-technology initiatives and start-ups.
Buying a house in the Principality
House prices are considerably higher than in neighboring France. If you want to live in Monaco, you can count on at least 35,000 euros per square meter to about 70,000 euros or more in the very exclusive areas. Monaco consists of districts, the most famous of which is the Monte Carlo district. Here you will find the Monte Carlo Casino and the Botanical Gardens. Monaco-Ville is also a well-known district; this oldest part of Monaco includes the princely palace. La Condamine is Monaco’s business center. The start/finish line of Formula 1 is also located here. The Fontvieille district can be found on the artificially constructed part near the harbor.
The neighborhoods therefore determine the price per square meter. Once you have found the right apartment or penthouse, the buying process is as follows.
Buying process real estate in Monaco
After acceptance of the written offer and the deposit of 10%, the notarial deed of sale is drawn up and officially signed before a notary public approved in Monaco. When signing the purchase contract, the following amounts must be paid by the buyer:
– The balance of the purchase price of the property
– Notary fees and stamp duty (currently about 6% of the amount of the transaction)
– The agency’s commission (3% of the amount of the transaction + 20% VAT)
As an example: for the purchase of a real estate for the price of 10 million euros, the buyer must prepare to pay a fee from the notary and the agency approximately 960,000 EUR (600,000 EUR to the notary and 360,000 EUR to the estate agent, including VAT) to be paid before the day the deed is signed. So the money must be in the accounts. If you are making a foreign bank transfer, please count on one week of processing.
Looking for a property in Monaco
Just like in France, there are many estate agents in Monaco who mainly offer apartments. Simply because there are few houses and villas. With our network in Monaco, we can offer you a selection from simple apartments to exclusive real estate, which of course cannot be found online. These off-market properties are only shared with a trusted and known network of real estate professionals. Contact us for more information if you want to buy a property in this exclusive Principality.