There are no restrictions on the purchase of real property in Monaco by foreigners. Any individual or legal entity may become the owner of real estate and they are not legally required to be a permanent resident. Many properties are purchased purely for investment purposes.    

The only formality required is the deed executed by a notary which guarantees the validity of the transaction both for vendor and purchaser.

Property purchased by individuals

Individuals wishing to purchase property must produce the following documents:

• Residence permit, passport or identity card;
• Family record book if they where married under the joint estate system;
• Marriage contract (if appropriate).

Property purchased by legal entities

Legal entities must produce the following documents in French:  

• The Articles and Memorandum of Association;
• For companies less than three month old, a copy of the entry from the register;
• The Minutes of the general meeting at which the purchase was approved; 
• Notarized power of attorney authorizing a particular individual to represent the company and conclude the transaction.

Notary fees and registration duties

Duties are payable by the purchaser. These will total  9% of the purchase price. Notary and registration fees are 2.5% when real estate is purchased from original developers.

Agency commission

Commission is payable by both the vendor and the purchaser. This is at a rate of 3% by the purchaser and 5% by the vendor (plus 19.6% VAT). The purcaser' s commission is not applicable when the property is purchased from the original developer.

The following types of tax are not applicable in Monaco:

• Income tax
• Land tax
• Wealth tax
• Housing tax

Individual tax

Income tax was abolished in Monaco in 1869. This means that citizens and foreigners are exempt from paying income tax, with the exception of French citizens who have become residents since 1957.

Inheritance tax. No claims are made on direct gifts or on gifts between husband and wife. The tax due on other gifts is very low as follows:

• From a brother or a sister                         8 %
• From an aunts, uncles, nieces, nephews    10%
• From an unrelated person                        16 %
• Other collateral                                      13 %

Company profits tax

To encourage the creation of companies the Monégasque government offers fiscal advantages. Companies created in Monaco are exempt from tax on any profits tax for the first two years and partly exempt for the third year.

Established companies which are based in and carry out commercial activities  in Monaco are subject to tax at the rate of 33 % when more than 25 % of the turnover is generated outside the Principality.

Offices which are basically administrative, not commercial are subject to a levy of only 2.6 % of the expenses incurred in running the office and are exempt from paying tax on profits.

Dividends paid by companies to their shareholders are not taxed.

Value Added Tax

V.A.T is applicable at the same rate as in France.

Registration duties

Registration duties are levied on formalities to register transfers of civil and legal acts. It is either proportionate or a fixed amount.

Some of the rates in force are:

• 7,5 % on property transfers by commercial establishments;
• 6.5 % on the sale of real estate;
• 1 % transaction fee on real estate transfers;
• 0.6 % mortgage subscription fee.

Conditions required for entry to Monaco for three months or less

Any person of foreign nationality who wishes to enter Monaco and stay for a period of not more than 3 months must have the same identification as is required for entry into French territory - ie valid passport, driving licence or other identity document.          

No other formalities are required of foreigners who wish to travel to Monaco.

Conditions required to obtain official residence in Monaco 

1) Nationals of the EU

Nationals of a country which is a member of the European Union do not need apply for a permanent residence permit in Monaco. To obtain a Monegasque temporary residence permit, they must apply to the Residents Section at the Department of Public Safety and provide the following documents:

1. A copy of a police record or an affidavit confirming that they have no criminal convictions;   
2. A work contract stamped by the employment office, a request for authorisation to start a business, or a bank certificate showing financial self-sufficency;
3. A medical certificate;
4. A contact of lease or a property deed;
5. 2 photos;
6. A valid passport.

2) Nationals of a state which is not a member of the EU and who do not reside in France

An application must be made to the French Consulate in the country of residence for a permanent residence permit.

The following documents must be provided:

1. A copy of a police record or affidavit confirming  that they have no criminal conviction;   
2. A work contract stamped by the employment office, a request for authorisation to start a business, or a bank certificate showing financial self-sufficiency; 
3. A medical certificate;
4. A contract of lease or a property deed;
5. Nine photos;
6. A photocopy of a valid passport;
7. Nine copies of the visa form.

Once this permit has been received, all foreigners over the age of sixteen are required to apply for a temporary residence permit at the Department of Public Safety within eight days of arrival in Monaco. The same documents as those required for nationals of the EU must be presented (see section 1).

3) Nationals of a state which is not member of the EU who are residing in France

This group is divided into two categories:

3.1  If the persons concerned have been living in France for more than 1 year,

They are required to submit their application for residence to the Consul General of France in Monaco, along with the following documents:

1. The application of the person in question;
2. A photocopy of their French residence permit;
3. A photocopy of a valid passport.

3.2  If the persons concerned have been living in France for less than 1 year,

They must submit their application for permanent residence  to the Consul General of France in the country in which they resided before moving to France. The documents required are the same as for nationals of a non-EU state who are not residing in France (see section 2).