Guide To Buying Property in: Monaco

There are numerous reasons why many people want to live in Monaco, and its location is at the top of the list. Set on the glistening Mediterranean Sea with the French Alps as a backdrop, Monaco is close to both the sea and the mountains.

So let me take you through the buying process of buying a home in this coveted destination.

As with many destinations on the Cote d’Azur, Monaco is most popular with wealthy property buyers – and the proximity to the Italian Riviera only makes it more appealing. At less than 1 square mile and as the second-smallest country in the world, Monaco is an elite location and very desirable which is why many overseas investors are buying a property in Monaco.

Those who call Monaco “home” include athletes, Hollywood A-listers, models and musicians – and it’s also attractive to leading business professionals thanks to the country’s tax incentives. Expats also feel at home in Monaco because so many people here speak English. You can take your time to master the French language while still meeting locals and exploring your new home.

The petite size of Monaco and the advantageous tax system beloved by billionaires have put a high demand on real estate in the area, making the lavish lifestyle offered here sought-after…and exceedingly rewarding when achieved.

The Climate

Like the rest of the French Riviera, Monaco gets 300 days of sunshine throughout the year. Summers are clear and warm, and while the season is on the short side, the rest of the year stays mild enough to still enjoy the fresh air. Late June to late August are the hottest times of the year in Monaco, and that’s when an influx of tourists and holidaymakers will be in town to take advantage of summer activities. Even during the chillier and longer winter season, though, temperatures rarely drop below 37 degrees Fahrenheit (3 degrees Celsius).

The Lifestyle

It may be compact, but Monaco is brimming with plenty to keep you entertained, and there’s no doubt that you’re surrounded by luxury. Two harbours play host to some breathtaking superyachts, and even if you don’t own one yourself, there are several yacht rental services to choose from. High-rollers spend their evenings at world-renowned casinos in Monte Carlo, and there are also endless options for designer shopping and gourmet dining

If you want to spend your time outdoors, soak up the phenomenal weather at the beach or golf course. Or, spend a weekend in the French Alps, where you can ski or snowboard all morning and afternoon. In the evening, lap up the après-ski scene in town. There are also numerous cultural and VIP events to attend year-round, like the nearby Cannes Film Festival, as well as the Formula One Grand Prix, the Monaco Yacht Show and the Monte Carlo Masters tennis tournament.

Monaco is an extremely safe place to live, too – which is especially helpful if you plan to have a part-time home here instead of a full-time residence. With the largest police force per capita and per square metre, the crime rate remains low. Additionally, the entire Principality is monitored by 24-hour surveillance.

Getting to Monaco

If you’ll be traveling to and from Monaco for work or to visit other properties, you’ll find the destination convenient to access. Close to multiple transport links, Monaco’s residents find it easy to visit France, Italy, the UK. or practically anywhere else multiple times a year. The Nice Cote d’Azur Airport is approximately half an hour away by car. If you need to get there faster, you can take a 10-minute helicopter ride – Monaco has helicopter companies at the ready to give you a lift. The Principality is also accessible by boat or train, making it possible to live and work in other European countries while maintaining Monaco residency for the tax incentives – and the glamorous, jet-setting lifestyle.

Taxes in Monaco

Since Monaco’s business and personal tax policies are favorable to residents and lenient when compared to other nations, the Principality is considered a high-profile tax haven. Along with its other attributes, this is why there are so many wealthy property owners in Monaco.

Monaco has not levied personal income tax on residents since 1869, and that remains true today. To be considered a resident, you must live in Monaco for a minimum of six months plus one day out of the year. Know that some European countries see this as tax evasion, and you may be subject to other income taxes. For example, French nationals who live in Monaco may have to pay income tax.

In general, there aren’t property taxes in Monaco. However, rental properties are taxed 1% of the annual rental plus other charges. Also, there are no taxes on capital gains, directors’ fees, dividends or investment income, and there isn’t wealth tax, either.

Types of Property in Monaco

The Monaco real estate market is one of the most expensive in the world. On average, the purchase price per square metre is upwards of 47,000 Euros. Properties with a purchase price of under 5 million Euros are the most popular, with properties over 10 million making up fewer sales.

Since Monaco has limited space, most of the homes you’ll find are apartments and penthouses, though there are villas available at times. Homes here are luxury, with unbeatable views of the Med and a long list of amenities.

Though the apartments in Monaco may be smaller than the ones you’ll find in nearby cities, they’re full of character and comforts – and, of course, your location is terrific.

While it’s difficult to find waterfront property listed to buy, a property agent will be able to access unlisted properties so you have more variety to choose from. New buildings are not altogether common in Monaco, which makes the demand for property especially high.

When it comes to older properties, there’s a wider selection, but keep in mind that you may have to make refurbishments and upgrades. Again, a property agent will be able to show you what’s available and guide you to make the best decision for your purposes.

The Buying Process

The Monaco buying process is purposely designed to prevent either party from pulling out of the purchase once an offer is accepted. For example, an offer should include a “subject to finance” clause with specific details so that it can’t be used by the buyer as an easy way out of the purchase. Also, gazumping is not allowed, which is when the seller accepts the buyer’s offer but then refuses to sell the house to them if they’ve been offered more money from another interested party.

It’s always best to work with a property agent to find your new home in Monaco. They’ll know the ins and outs of the area and may even show you unlisted properties that other buyers don’t have access to. Plus, your property agent will be by your side throughout the entire buying process, which is particularly helpful for those who have never bought Monaco property before.

Written by Tim Swannie

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