Monaco Rental Property
From Casino Square to ‘the Swimming Pool’ and the Marina, the iconic Formula One Grand Prix street circuit is perhaps the first glance the wider world has at the glamorous and luxurious principality of Monaco. Set between the twinkling ocean and the dramatic hills that provide a spectacular backdrop for the city, it is perhaps no wonder that Monaco, the home of relaxation and adrenaline in equal measure, is the chosen home for many of the greats that have driven the tight corners of the street circuit in the course of their careers. Monaco rentals offer a way to enjoy the best of the city, and may even be found overlooking the iconic corners of the street circuit.
The principality of Monaco is a place apart from the rest of France, with its own laws and tax system. Even though it is surrounded by France on its land borders, Monaco is an independent state, with its own constitutional monarchy. At only 2km², the principality is the smallest country in the world, after Vatican City, and with a population of around 33,000, is the most densely populated. With property in the city at a premium, Monaco rentals are a popular alternative to buying in the principality.
Since the marriage of Prince Rainier to Grace Kelly in 1956 and the first Monaco Grand Prix in 1929, Monaco has been synonymous with the champagne lifestyle of the rich and famous. Partly due to the prestige of the city, and partly due to the fact that there is no income tax levies in the principality, the population of Monaco largely consists of wealthy foreigners. 84% of the population are immigrants, with a large proportion being French, Italian and British nationals. As such, Monaco is a modern and multi-cultural city that is truly self-contained, and Monaco rentals allow a ‘home from home’ for many foreign nationals.
With nearly 4km of Mediterranean coastline and a warm, sunny climate Monaco is also a popular tourist destination, with a large proportion of the economy being driven by tourism. Monaco rentals are often popular with those who fall in love with the area on an always ‘too short’ visit. The principality is well served by train services from France, and the nearest airport is the Côte d'Azur Airport in Nice.
While Monaco is independent, and only a few kilometres from the Italian border, Monaco is strongly allied with France in economic, political and judicial terms to ensure a lack of conflict in policy. The head of the government is a French citizen, appointed by the prince from a number of candidates proposed by the French government. As such, Monaco shares the currency of France, the euro, but does retain the right to mint it’s own unique coinage.
The principality of Monaco is indistinguishable from the city of Monaco, but is subdivided into several wards where Monaco rentals can be found. Monaco consists of four original quarters. The first is Monaco-Ville, site of the original town. The rocky promontory is the site of the palace and is sometimes simply known as the ‘Rock of Monaco’. Monaco rentals in this quarter are often found in older buildings, and within the shadow of the old fortified city walls. La Condamine is found next to the old town, and contains the wards of La Condamine, La Colle, Les Revoires and Moneghetti. Monaco rentals here are often within sight of the harbour, Port Hercule, or by the exotic gardens. Most Monaco rentals, however, are to be found in the traditional quarter of Monte Carlo. This quarter comprises of the eastern beach, the resort area and the principal residential areas for Monaco rentals. Like La Condamine, Monte Carlo is also subdivided into for wards; Monte Carlo/Spélugues, La Rousse, Larvotto and Saint Michel. The final quarter, Fontvieille, is the most modern location for Monaco rentals, having been reclaimed from the sea in 1971.
As would be expected from such a prestigious and luxurious location, Monaco rentals are to be found near to a wide selection of facilities. There are museums with global reputations, most notably the Oceanographic Museum, expansive and serene gardens containing rare species of flora, and breathtakingly beautiful ancient buildings, including an 11th century chapel dedicated to the royal family’s patron saint. Monaco rentals are also found near a huge variety of superb restaurants, ranging from 3 Michelin starred restaurants with world-renowned chefs, to French brasseries and Italian speciality restaurants and Pizzerias. Nightlife in Monaco is exceptional, and the principality offers everything from a few drinks in one of the many relaxing café bars, to an adrenaline filled night at one of the iconic casinos. Monaco also draws many international names, and there are festivals and events held throughout the year.
As the self-styled International capital of luxury, Monaco rentals are found amid a plethora of designer boutiques, especially in the Carré d’Or area of Monte Carlo in the heart of the town, as well as modern shopping centres and charming craft shops located in the historic quarters. The market situated around Port Hercule is characterful, as well as providing a wide range of produce.
As would be expected from the world famous sporting events such as the Grand Prix held in the principality, sport is very important in Monaco. Some of the best and most desirable Monaco rentals are to be found near the Formula One street circuit, but away from the adrenaline based sports are a whole host of facilities. Monaco regularly hosts international show jumping events, athletics, and tennis events at the Monte-Carlo Country Club. The beautiful beaches around the town host Ironman triathlons, as well as offering windsurfing, jet skiing and parascending, amongst others. Of course, one of the most popular watersports in the principality is yachting, with world-class facilities in the iconic marina. Beauty and fitness facilities can be found throughout Monaco, offering a wide range of treatments, pools and fitness rooms.
Guide to the Monaco Buying Process
The estate agent will connect the buyer, the seller and a property, and will take a commission to do so.
The notaire (solicitor) is the Monegasque council which drafts the deed of sale and which brings together the buyer, the seller and possibly the lender for the act of signing the deed.
The notaire generally acts both for the buyer and for the seller. He is responsible for making necessary searches and enquiries such as verifying that the seller has the rights and title deeds, that there are no outstanding mortgages, no planning irregularities etc.
The intervention of the notaire certifies that the deed of sale is a document that is both conclusive and enforceable.
1. Written offer
The buyer usually has to sign an offer to buy. This is drawn up by the estate agent and if accepted, binds the parties. Often, a cheque drawn on a Monaco bank, and representing the security deposit will be attached to the offer, in order to prove the commitment of the buyer. Otherwise, the offer will specify that a bank transfer will be made to the notary's escrow account, within a short period after the offer is accepted.
Subsequently, the purchase takes place in two stages: the signing of a promise of sale drawn up by the notaire followed by the signing of the deed of sale before the notaire. The buyer must undertake to pay a security deposit equal to 10% of the sale price at the signing stage of the promise to sell, amount retained by the notaire and which will be deducted from the sale price at the signing of the deed of sale.
2. Costs and expenses
Generally, on the purchase of goods over 5 years, the costs and expenses will be equivalent to 6% of the purchase price and will have to be paid by the buyer. This 6% includes a registration fee (4.5%) and notary fees (1.5%). This rate is applicable when the purchase is made by individuals or by a Monegasque ICS. The registration fees will be higher (7.5%) when the acquisition is made through a foreign company, to which must be added notary fees of 1.5% thus making a total of 9 %.
In some cases (eg when the property is new or under construction) the registration fee will not apply and the sale price will be subject to value added tax (VAT) at the rate of 20%. The notary fees and a right of transcription will be applicable for a total amount of 2.5%, payable by the buyer, regardless of whether the buyer is an individual or a company.
3. Purchase of a foreign company
If the property is held by a foreign company, the buyer may possibly purchase this structure and in this case the registration fee will be 4.5% on top of the value of the property following the change of the owner of the foreign company.
4. Tax consequences
Monaco does not levy income tax, capital gains tax or wealth tax on individuals. French nationals residing in Monaco nevertheless pay income tax and wealth tax in France in certain circumstances.
The rights of gifting and inheritance rights exist in Monaco, but only on property located in Monaco. The rate of these fees is 0% on provisions in favour of parents, a surviving spouse, children or more distant relatives.
On other provisions, donation and inheritance taxes are payable at rates depending on the degree of relationship between the donor and the recipient. The maximum rate of 16% is applied in the case of provisions to non-parents.
The fee is payable by the recipient.
IMPORTANT - Disclaimer :
All information provided is believed to be current and provided free of charge. No liability can be accepted for the reliability of the information and statements made as this is obtained from 3rd parties. We always recommend you take legal advice from a fully qualified Lawyer or Notary before buying a property overseas.
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