Real Estate Taxation in Monaco: 

Acquisition Costs, Benefits and Inheritance

The Principality of Monaco stands out not only for its security and exceptional lifestyle but also as a haven of fiscal stability for residents and international investors. However, acquiring property in this exclusive territory follows precise rules. At PIRAS Real Estate, we transform this administrative complexity into a seamless step of your journey, providing total clarity on the financial mechanisms linked to your investment.

Acquisition Costs and Notary Fees in Monaco

Anticipating acquisition costs is the cornerstone of any successful real estate project. Monegasque taxation makes a fundamental distinction based on the property type. For the acquisition of an existing or "resale" property, the buyer should expect total fees of approximately 6.25% of the sale price, covering registration duties (4.75%) as well as notary fees (1.5%). 

Conversely, investing in new developments or off-plan properties (VEFA) benefits from a lighter regime, with deed fees limited to 2.5% of the total amount, as the 20% VAT is generally already included in the developer's price. It is crucial to note that the Principality favors transparency: acquisitions made through non-transparent foreign companies are subject to a specific higher tax regime, ensuring compliance with international standards.

Unique Tax Advantages for Property Owners

Beyond acquisition, Monaco offers its residents a personal tax regime unique in the world. Individuals residing in the Principality benefit from a total absence of income tax (with the exception of French nationals governed by the 1963 bilateral convention), no property tax, and no housing tax. Furthermore, capital gains on real estate realized by individuals are not taxed, a considerable advantage for the long-term appreciation of your assets.

Inheritance and Wealth Transmission: A Patrimonial Haven

However, it is in the realm of wealth transmission that Monaco proves to be truly exceptional. The inheritance regime is designed to foster the preservation of family assets. 

Inheritance taxes are completely non-existent in the direct line, meaning no tax is levied on inheritances between parents and children or between spouses. For other degrees of kinship, taxation remains particularly lenient compared to European standards: it stands at 8% between brothers and sisters, 10% between uncles, aunts, nephews, and nieces, and 13% for other relatives. Even for unrelated persons, the maximum rate is capped at 16%, offering rare flexibility for transmission to third parties. 

This benevolent fiscal policy applies to assets located within Monegasque territory, making the Principality the ideal place to anchor and perpetuate one's heritage over several generations.

Optimize Your Investment with PIRAS IMMOBILIER

Monaco’s tax system is a powerful asset, but every situation is unique. Whether you are purchasing in your own name or through a Monaco-based SCI, our experts—working closely with leading notaries and legal advisors—will guide you in structuring your acquisition optimally.

Mauro PIRAS and Silvio PIRAS are at your disposal to carry out a financial simulation for your purchase or sale project.