Located in the heart of Europe, Monaco is an independent sovereign state between Cannes and Italy. Recently., it has emerged as a serious business center and a desirable place of residence due to its location, climate and the overall economy.
With French as its official language, the country is home to beautiful architecture, amazing beaches, historical landmarks and has become a well sought out tourist destination.
Perhaps the foremost attraction of Monaco is the safety provided to its residents due to the impeccable policing system in the state and the favourable tax system for business people and investors.
Monaco does not enforce any income, capital gains or withholding tax and its taxation system is legislated independently. This is beneficial for anyone who seeks to purchase real estate property for rental or long-term residence purposes.
Property in Monaco
The Principality of Monaco is a prestigious location; therefore, it comes as no surprise that Monaco property is considered high-end and charges considerable sums. There may be fewer opportunities to bargain due to the quality of the extant accommodation present. Still, its tax haven status makes sure that the real estate market stays buoyant and stable. Thus, luxury properties in Monaco continue to be incredibly attractive investment opportunities.
Most of the residential properties in Monte Carlo and Monaco consist of small studio apartments, luxury triplexes and penthouses. A selection of extravagant townhouses and luxury villas are also available, which have a lot of value in the real estate market. Residences are overlooking the harbour and formula 1 circuit which are highly sought after properties.
The Monaco Buying Process
The property buying process in Monaco includes the real estate agents who connect buyers, sellers and properties while charging a lucrative commission. Secondly, it consists of the Notaire (solicitor) who is a member of the Monegasque council which creates the deed of the sale and handles all legal ownership matters.
The Notaire usually acts for both the buying and selling parties and is responsible for ensuring that there are no planning irregularities or outstanding mortgages that need to be taken care of. The intervention of the Notaire makes the deed of the sale conclusive and enforceable.
An overview of the buying process is summarized below:
The property buyer first has to sign a written offer to buy. This is drafted by the agent and is binding if signed by both the parties. A security deposit also needs to be attached, which is typically a cheque drawn on a Monaco bank to provide proof of commitment to the transaction. The security deposit is 10% of the sale price, which is later on deducted from the selling price once the process is completed.
The main purchase occurs in two stages. First, the promise of sale drafted by the Notaire is signed. Then the signing of the deed takes place in the presence of the Notaire.
There is no income tax, wealth tax or capital gains tax in Monaco. Moreover, for all properties located within the state, gifting and inheritance rights are given to its residents.