Monaco: Overview

RENTAL YIELDS

Monaco's yields are low at 2.4%

Yields are low at around 2.4%. A 35 sq. m. apartment in the Principality yields an average return of 2.12%, while a 195 sq. m. apartment yields an average return of 2.64%.

Most of the available property is apartments, from small studios to large luxury triplexes and penthouses.

Property overlooking the harbor and Formula 1 circuit is naturally more expensive. There is also a selection of luxury villas and beautiful townhouses and these are even more valuable.

Read Rental Yields  »

TAXES AND COSTS

Monaco has no income tax or CGT

Rental Income: There is no tax on personal income, except for French nationals who must pay taxes to the French government.

Capital Gains: There is no capital gains tax, except for French nationals.

Inheritance: There is no inheritance tax on direct heirs and spouses.

Residents: The Monegasque tax system applies to all residents, regardless of their nationality, except for French nationals.

Read Taxes and Costs  »

BUYING GUIDE

Buying costs are high in Monaco

Total roundtrip transaction costs, i.e., the total cost of buying and selling a property, are high relative to the rest of Europe, and are typically between 18% - 20%.

This includes the 8% real estate agents' fee (plus 20.6% VAT), 5% of which is paid by the seller and 3% by the buyer. Another significant cost is the 7.5% real estate transfer tax. Costs for new properties are much higher because 20.6% VAT is imposed in lieu of transfer tax.

Read Buying Guide  »

LANDLORD AND TENANT

Tenant protection laws are nonexistent in Monaco

Monaco’s landlord and tenant relations are pro-landlord.

Rent: Rents are set by free agreement between the parties. Any increases must be specified in the contract by reference to a cost of construction index applying on each anniversary.

Tenant Security: The legal system works well, not least because tenants' rights are limited.

Read Landlord and Tenant  »

ECONOMIC GROWTH

A modern and diversified economy

The Principality of Monaco (Monegasque) is the second-smallest independent state in the world, after the Vatican City. The country - a constitutional monarchy - is surrounded on three sides by France. It occupies less than two square kilometers (0.75 sq mile), much smaller than an average city. Known for its temperate climate, glamorous casino and zero percent income tax, it is a playground for tourists and the wealthy.

Thanks to the late Prince Rainier III, the principality has become a dynamic economic centre with almost no unemployment. There are more than 100 industrial enterprises which employ 39,000 people, although Monaco has only 30,000 residents. GDP per capita in 2000 was around US$27,000.

Taxes on industry, trade, services, hotels and real estate contribute a big part of government revenues, a far cry from the old practice of relying on casino revenues.

Monaco's real estate has among the highest square metre values in the world. It attracts foreigners, aside from the tax advantages, because of its security, cleanliness, cultural events, mild climate and political stability.