Monaco’s real estate market is one of the most attractive for investors in Europe since most of the known taxes are absent in this country.
In particular, in the principality, there is no capital gains tax, real estate tax, which must be paid every year, income tax for individuals. However, some interest you still have to pay the state.
Another tax applies to owners of commercial real estate in Monaco. If you get some profit from the object, for example, you lease it, you must pay 33.33% to the state. Moreover, if you get 75% of the profits from the activities of your company in the territory of the principality, you are exempt from paying taxes. Read about it in our site https://offshorecitizen.net/tax/countries-with-no-income-tax/.
Monaco Registration Tax
So, if you bought a property in the principality on the Cote d’Azur, get ready to pay a tax of 4.5% for the registration of the object.
Those who became the owner of an apartment in a new house, you must also pay VAT, the amount of which is 20%. Usually, this amount is automatically included in the price of the room.
Inheritance and gift tax
Such a tax on real estate in Monaco, as a tax on inheritance or donation, in the country, although it exists, but in a very simplified form.
So, spouses, children, and parents of the deceased are exempted from it. For everyone else, the interest rate is 8–16% – it all depends on whether you were a relative of the deceased, and if so, how close.
Other real estate expenses
When buying property in Monaco, keep in mind that you are facing additional costs, such as notary fees (1.5–2.5% + VAT), agency work (3% and VAT – 19.6%).
In general, the cost of a sale transaction in Monaco will be approximately 13-17%.
Sometimes inexperienced investors find it difficult to independently understand all the legal intricacies when buying property. In such a situation, it is advisable to contact us.
Our staff employs highly qualified notaries and translators who will always come to your aid and will answer any question of interest. Consult on property taxes with us, and you will not have unresolved problems.