It can be very stressful and overwhelming if you decide to look for an apartment to buy in Monaco, an apartment to rent, or if you are thinking of selling or renting out your Monaco property. You will find here below our answers to most frequently asked questions about real estate in Monaco. Do not hesitate to contact us if you can’t find the answer to your question because we are available 24/7.
SELLERS
Do I have to pay a tax when I sell my property in Monaco ?
No. There are no capital gain tax in Monaco and only the buyer pays the Notary.
When do I have to pay your Monaco agency fees ?
The commission must be agreed before the final transaction. We will forward to the Monaco Notary a copy of your commission agreement. Once the transaction has been made, the Notary will pay the real estate agency commission directly to our bank accout.
Who pays the real estate agent fees when selling a home in Monaco ?
Both the seller and the buyer pay the agency’s commission in Monaco. Those rates are given by the Chambre Immobilière de Monaco who represents most of the Monaco real estate agencies.Â
However it happens that real estate agency commissions are adapted to make the deal go through. Those rates can also be applied when the Monaco property we introduce to you is offered by another agency who will be paid by the seller.
- Sell commission is 5% + Vat 20%.
- Buyer commission is 3% + VAT 20%.
What is the process when selling my property in Monaco ?
Once you accept the offer for your property, you will need to complete forms and gather personal date which we will forward to the Monaco Notary’s office in charge of the transaction. We will receive a draft of the final deed and then agree on a signing date with the buyer.
The Monaco Notary’s office is in charge of contacting the building’s administrator to regularize your current service charges situation and inform about the new owner.
You will be given a selling attestation certificate with and without the selling price which can be useful to terminate home insurance contracts for example.
Where will you advertise my Monaco property ?
We advertise on our own website and on popular real estate websites such as MonteCarloRealEstate. We also inform our registered clients to notify them immediately, or confidentially get in touch with our professional network in Monaco and abroad (legal advice offices, portfolio manager, etc).
We also work closely with all the other Monaco Real Estate Agencies and details of your property will be communicated depending on our marketing strategy.
Depending on the Monaco property, we will adjust a marketing strategy to maximize the number of viewings. It can also happen that we recommend to keep the Monaco property off the market for some months.
Should I use one or multiple real estate agency in Monaco when selling my property ?
We understand that more agencies means more potential buyers in a seller’s mind. However in the specific and prime real estate market of Monaco, professional real estate agencies share commission rather than working in competition. We work on a long length relationship based in trust. You will be happy to be in touch always with the same person instead of getting calls from multiple other agencies which can also be a disruption. We will accompany all viewings to promote your property’s best features and provide all the information about the area and residence.
Wil it be possible to delay the completion of my apartment sale ?
Yes it is possible to delay the completion date of the apartment sale. This request has to be communicated to the buyer as your condition when answering to their purchase offer letter. Usually buyers accept to postpone the final deed signature if a seller needs some more time to organize his house move. Please do keep in mind that it might also affect the buyer’s timing (apartment renovation, Monaco residency application, etc).
How will you value my Monaco property ?
We use our experience to assess the surrounding Monaco real estate market : we use statistics from previous sales and similar properties on the Monaco real estate market and analyze them with the current market situation adding extra factors such as the current interiors conditions of the apartment or the availability of a parking space with the apartment. We like to provide you with a fair valuation of your Monaco property. We will never increase the price of your property just to get your attention.
We usually ask for 2 days to do our valuation of the Monaco property and the valuation is completely free.
We would be delighted to offer you this valuation of your Monegasque property and to handle the sale of your flat.
BUYER
Do I pay any property tax when buying an apartment in Monaco ?
No. There are no property tax in Monaco. As a buyer you will pay the agency commission and the Notary fees (6,25% of the property final price).
When I will make an offer to buy my apartment in Monaco, how will I know when It has been accepted ?
The offer letter which you will sign when starting the Monaco property buying process includes a deadline to get an answer from the seller. We are in touch with the seller during the all negotiation and we will get back to you to let you know what is the status of your offer to purchase. It can happen that seller do not accept your first offer and asked us to forward you their counteroffer (price change, removal of certain conditions or closing date change).
Who pays the real estate agent fees when buying a home in Monaco ?
Both the seller and the buyer pay the agency’s commission in Monaco. Those rates are given by the Chambre Immobilière de Monaco who represents most of the Monaco real estate agencies.Â
However it happens that real estate agency commissions are adapted to make the deal go through. Those rates can also be applied when the Monaco property we introduce to you is offered by another agency who will be paid by the seller.
- Sell commission is 5% + Vt 20%.
- Buyer commission is 3% + VAT 20%.
Do I really need an estate agent when buying a property in Monaco ?.
A Monaco real estate agency is not required when you decide to buy your property in Monaco. But it is highly recommended to help you through the complex process of buying : Notary introduction, documents organization, etc. In addition the Monaco real estate agency can help you to find the right property even before it comes out on the market or listed on the main websites. We work closely with all the Monaco real estate agency and if you get in touch with us in a exclusively way, we will be able to understand your requirements better and filter the Monaco real estate market. You will not receive calls from any Monaco broker all day long for non-interesting properties. Monaco real estate market insights are important in such a small and expensive market.
Should I buy or continue to rent in Monaco ?
That is a highly personal decision that depends on your profile. Please do keep in mind that the average rental yield of a property in Monaco is quiet low compare to London property market or other European cities. The Monaco real estate market is based on capital gain due to its exponential trend and micro-market factors. Monaco is tax free and your Monaco real estate investment opportunity will quickly turn into a secure real estate investment. Most of our clients have seen the Monaco real estate market growth in the last years and ,wonder why they had not decided to buy their primary residence in Monaco before!
Should I talk to a bank before buying my new home in Monaco ?
We recommend that you get in touch with a Monaco bank for a pre-mortgage acceptation before visiting apartments and HOMES for sale in Monaco. It will give you a perfect vision of what you can afford and the loan you will get. We have been working with the best banks and private portfolio management companies in Monaco. We will be able to introduce you to our contacts to bring you the best deals but also to meet with a reliable dynamic person.
When do I get the keys of my new Monaco apartment ?
We will agree on a date with the sellers and the Monaco Notary to sign the final deed contract. On that day the final amount will need to be in the Notary’s account. The Notary will read the deed to make sure that all details are approved by the sellers and the buyers. The deed will then be signed by both parties and the Monaco property is legally yours. You can collect the keys from us or directly from the Notary meeting in case the property has been vacant by the sellers.
Is a survey required when buying a property in Monaco ?
No. A survey is not legally required when buying your property in Monaco. However most banks will organize a Monaco property survey to ensure that it is worth the money they are providing to you. When buying a property in Monaco the Notary and the final deed do not mention any square meters as they are no legal obligation. You have the possibility to ask a surveyor to check the correct size of the apartment in case the Monaco agent is not providing exact details.
How long is the process of buying a property in Monaco ?
The duration of time to complete the purchase of your property in Monaco can change depending on : the availability of the buyers and the sellers, the organization of the possible mortgage by your bank, the availability of the Monaco Notary following to the check of the information provided by all parties.
The Monaco property buying process usually takes up to 3-4 months if the buyers and the sellers have agreed on a time to organize themselves. It is important to work closely with us and with the Monaco Notary to ensure that the buying process of your property goes on smoothly.
Do I need a Notary or Solicitor in Monaco ?
In most cases we recommend to use a Monaco Notary who will provide a legal advice during the property purchase process, making sure that the transaction is carried out efficiently thanks to the checks made on the sellers : personal data, capacity to sell, mortgages on the property, regularization of the condominium fees, etc). All Monaco transactions are registered at the Monaco Registration Office and it is the Notary’s mission to get in touch with this office and make sure that the transaction can be done.
There are three Notary offices in Monaco and we will introduce you to the right one for you depending on your profile and needs (family company structure, country you are coming from, etc).
The Notary fees in Monaco are paid by the buyer only (including the Notary fees and the Monaco property transfer tax).
Am I committed once my offer has been accepted ?
No. Nothing is legally binding until you have paid the deposit amount to the Monaco Notary.
What happens when my offer to purchase is accepted ?
The next step after your offer is accepted is to arrange the transfer of the 10% deposit to the Monaco Notary account. Please keep in mind that your deposit will be kept by the sellers in case you will change your mind. There are three Notary offices in Monaco and we will introduce you to the right one depending on your situation and profile. The Notary will keep you deposit and will take care of checking all points about the seller : capacity to sell, mortgage conclusion, etc.
While the Notary is preparing the deed, we will ask you to complete our standard information document about you (personal datas and other civil certificates).
Once the Notary is ready we can agree on a date all together for the signing of the final deed. You will have to organize the payment of the balance to the Notary account before that day (Notary fees, Agency fees and the property price resting amount).
How do I make an offer to buy a Monaco property ?
When you find the Monaco property that you like, you can choose to put an offer in. We will complete together our purchase offer document made by our legal advisors in Monaco. This document includes details of the person or of the company buying the property, and any additional information concerning the Monaco Notary and possible mortgage.
We will also ask you for your passport and for a recent proof of your current residence/address.
In case of a mortgage an agreement in principle from your bank is also requested.
The payment of the 10% deposit to the Notary account must be organized within 5 working days following to the acceptation of your offer by the sellers. It can also happen that we ask you to join to the purchase offer your 10% deposit in order for us to forward to the sellers a more serious offer. It all depends on the negotiation.
You can learn more about the Monaco property buying process here.
LANDLORDS
Can you represent me at the yearly condominium general assembly ?
Yes. We represent hundreds of landlords interests yearly at the condominium general assembly. We manage properties in all districts of Monaco and have a strong knowledge of most of the residencies history. We will be glad to attend the assembly on your behalf and make sure that your asset and your wishes are respected.
Do you offer inventory and inspection services at the entry and exit of a tenant ?
We always organize an inventory and inspection on the day that we give the keys to the new tenant renting our Monaco property. Our full report includes descriptions and photos of the apartment’ state and conditions. The same inspection will be conducted when the tenant will move out keeping in mind that we hold the deposit until all issues have been fixed. Some landlords sometime request that the inventory is made by a Monaco bailiff. The costs can be shared with the tenant.
Can I customize your rental agreement or add my own clauses ?
All our contracts are drawn up by our Monaco legal advisors and they contains any clause to fully protect our landlords. However we could adapt our lease in case you would like to change some points such as the rent increase conditions or the deposit amount.
What are the fees for the landlord ?
The fees paid by the landlord to the real estate agent managing the apartment in Monaco (or any property) depends on the percentage agreed together. The official Chambre Immobilière de Monaco provides rates which can be adapted depending on the services offered by the agency.
In addition to the apartment manager fees, the landlord is paying the extraordinary condominium services charges, the home insurance for landlords, and any repairs in the apartment which can’t be charges to the tenants.
Who can provide property management services ?
At HOMES we can provide a 24/7 property management service.
We advertise your property on the Monaco real estate market, we find you the right perfect tenants to rent your apartment, we prepare all lease agreements and contracts, we collect the rent and condominium service charges amounts, and offer any other full property management services because only you know how much time you can spare to deal with your tenants phone calls and the resulting work. High-level tenants expect 24/7 service when they rent an apartment in Monaco and we want to be their 24-hour landlord so you do not have to be.
You can learn more about all the different property management services we offer here. (link vers page)
What about the deposit ?
Once we will find a qualified tenant for your apartment in Monaco and his rental offer has been accepted, we will ask him to wire to us the deposit amount. This new tenant pays the deposit amount to secure the apartment and this deposit will be kept by the landlord if the tenant decides to not rent the apartment anymore. This deposit amount is kept by us during the all tenancy if we will be the agency managing your apartment. It will be paid back to the tenant once he moves out and the property is given back in perfect initials conditions. It happens that we use the deposit amount to pay small invoices which should be charged to the tenant moving out. We are legally allowed to hold this deposit few months after the tenant has moved out in case some repairs still need to be done afterward.
We can also agree in our property management contract that you will be the deposit holder.
This deposit amount will be adjusted every year to make sure it always represents 3 months’ rent.
Can I increase the rent of my tenant ?
The standard rental contract in Monaco is a twelve months contract, which is automatically renewed if it is not terminated with a notice three months before the expiry of the lease.
We usually apply an increase of 2% or 3% which can also vary depending on the initial rental offer agreements. Some landlords also use a popular french index which vary according to the french economic growth.
How long does it take to receive my rent income ?
If we manage your Monaco property, we will be in charge of collecting the rent from your tenant quarterly (or on a different timing depending on the rental agreement). Once we receive the rent and the condominium service charges from your tenant, we will transfer you the rental amount. Please do keep in mind that we might need a longer time when we have to regularize your condominium service charges with the building administrator using the rental income received from the tenant.
We always organize financial ability checks and question other Monaco references in order to find you the best quality tenants. We always keep good relationships with our tenants and could be flexible in case of a justified delay. If an unluckily situation happens we will take care of the outstanding debts process appointing a Monaco bailiff.
What are my responsibilities as a landlord renting his property ?
First of all you need to make sure your property is ready to be occupied by a tenant. We will inspect your property together to make sure that everything is in perfect conditions (functional appliances, paint condition, number of keys, etc).
In Monaco it is now mandatory for landlords willing to rent out their apartment to have a home insurance covering aspects that the tenant insurance might not cover.
You or the agency managing your property will have to inform the building manager of a new tenant as the tenant will pay part of the condominium service charges.
It is important that you inform the Monaco main post office as well as all other person or company who need to know your new address.
Do I need to be there for viewings ?
No because clients wishing to rent an apartment are often more relaxed when there is nobody in the apartment. You will provide us with keys and any other access codes so we can organize viewings and enter the apartment independently.
Who will conduct viewings in my apartment ?
All viewings organized with a potential tenant to visit your apartment will be accompanied by us. We also work on Saturdays and evenings!
Where will my Monaco property be advertised ?
We proactively market your property to our registered potential tenants first and then advertise it on our website and on other Monaco real estate websites.
We also have a very strong digital marketing strategy on Google, Facebook and Instagram to maximize the audience.
TENANTS
Do you help me with any repairs during the tenancy ?
Yes we are the property manager and we remain at your disposal if you need any help. It can includes repairs to be paid by the landlord or work that you would like to have done in the apartment. We work with companies we know to ensure the very best quality of workmanship and a competitive price.
Can I rent in Monaco without applying for a fiscal residence ?
Once you have signed for a twelve months rental contract, you will be able to apply for your Monaco residency. However if you have not declared yourself after a period of time, the Police can control the duration of your stay in Monaco and ask you to register yourself or to leave.
Do you deal with short-term rentals in Monaco ?
We are specialized in renting apartments to clients looking to benefit from all aspects of living in Monaco. We like to help clients who wants to relocate to Monaco and become a fiscal Monaco resident with a twelve months contract minimum. This is why we rarely can offer short-term rentals for apartments in Monaco but we can help you to rent an apartment in the surrounding areas.
Is there an inventory before I move into the apartment ?
Yes, to make sure the apartment is ready to be occupied, we organize an inventory and an inspection together with the new tenant on the day we are handing over the keys to him. This report can also be done by a bailiff in case it is requested by the landlord or the tenant, at an extra cost.
When will my deposit be refunded ?
By law, the security deposit is returned to the outgoing tenant no later than two months after handing over the keys and signing the inventory. The total amount will be returned to you if it will be not necessary to use part of it to pay any repairs left. We will always agree with you on how much you will get back.
Do you manage all the apartments available for rent listed on your website?
We manage most of the Monaco properties we advertise. If we are not in charge of the management of the property, we will always work closely with the landlord who gave us the mission to find him a tenant.
What happens once I have sent the security deposit to the Monaco real estate agent ?
Once that your rental offer has been accepted to rent your new apartment in Monaco, you will be asked to pay the security deposit to the real estate agency. This means the apartment is taken off the real estate market and secured for you. The real estate agent will start to prepare a draft of the lease with the information collected. Please do keep in mind that in case you no longer want to rent this property, you will loose the security deposit.
After the payment of the full rental amount (security deposit + fees + first rent period), the lease will be taken by the real estate agent to the Government registration office. After a period of about 10 days we will return you a lease copy registered and you are ready to start your Monaco residency process.
How much is the security deposit when renting a property in Monaco ?
Usually, the security deposit is three months’ rent + condominium service charges.
This can vary depending on the landlords : some can request three months’ rent only or six months ‘rent. Please note that this security deposit can be paid to us from any personal bank account in Monaco or abroad.
In case that starting date of the lease is very close to the acceptation of your rental offer, It can also happen that the real estate agent asks you to pay the deposit + the balance due (first rent’s payment + fees).
How do I arrange a viewing if I am interested in renting a property ?
When you find a Monaco property that interests you, you can contact us directly by phone or by email to ask your questions about the property and arrange a viewing with us. You can also make your Monaco property search easier by sending us details of other properties you liked visiting different Monaco real estate websites. We will contact the other real estate agencies on your behalf and organize your viewings. It is always easier for us and for you to have one single real estate agent in Monaco to avoid confusion during your property search.
Can a landlord ask for a payment of the rent in advance ?
The payment of the rent in Monaco is done quarterly in advance. However if you are just relocating to Monaco and/or if you can’t provide enough documents to show your capacity to pay the rent, a landlord can ask for more payment of the rent in advance.
What are the charges for the tenant renting an apartment in Monaco ?
- Agency commission is 10% of the annual rent + VAT 20% (the first year only)
- Electricity contract
- Home insurance contract (price can vary depending on insurance policy)
- Monaco Telecom contract (internet & television)
- Condominium service charges (building maintenance, concierge, water consumption, etc)
- Lease registration tax paid yearly (1% of the rent + condominium service charges)
- Bailiff in case the landlords or yourself asked for a third party report
- Refurbishment of the apartment when leaving (paint, floors, any repairs)
What references and guarantee I need when renting an apartment in Monaco ?
We will need any document which could proves your credibility as a tenant. It can includes information related to your job income, or a letter/attestation from your bank in Monaco to prove that you can afford the rent of the property. Most of the banks here in Monaco are used to provide this official guarantee. It can also happen that if you are not a resident of Monaco yet, we will ask you to pay one year rent in advance or to organize a three months bank guarantee (in your bank).
What document do I need to rent a property in Monaco ?
To rent an apartment, a parking or a storage in Monaco you will need :
- A valid passport or ID
- Proof of your current fiscal address (last electricity bills for example)
- Proof of funds (a certificate from a bank in Monaco, occupation information)
- Our client information sheet completed
- A bank account in Monaco
How do I rent an apartment or any other property in Monaco ?
In Monaco you can rent an apartment and any other property directly from the landlord or through a Monaco real estate agency like HOMES who will also assist you with all the process when you move into a new home. You can check out our guide to know how to rent an apartment in Monaco here.
