Investing in Monaco as a non-resident calls for a clear distinction between local Monegasque taxation, acquisition costs, the letting rules that apply to the property and, above all, any taxation in your country of tax residence. The Monegasque framework remains particularly attractive, yet it needs to be read with precision to avoid shortcuts and unwelcome surprises.
The pillars of property taxation in Monaco
The Principality stands out for its highly favourable local taxation on property ownership. For a non-resident, this does not mean a complete absence of tax in absolute terms, but rather the absence of certain levies at the Monegasque level.
No property tax or residence tax
Monaco levies neither property tax nor residence tax. This is one of the first features that sets the Principality apart from neighbouring markets, France in particular. This absence of recurring taxation on ownership makes it easier to control the annual cost of keeping a property. In practice, service charges, maintenance, insurance and any management fees remain the main items to plan for.
In Monaco, there is neither property tax nor residence tax. This lightens the annual cost of holding a property, including for a non-resident. To gain a better understanding of the Principality’s wealth positioning, you can also visit our page dedicated to real estate in Monaco.
No local taxation on real estate capital gains
In the Principality, there is no local taxation on the real estate capital gains of private individuals. This contributes to the appeal of the Monegasque market, particularly within a long-term wealth strategy. For a non-resident, however, it is always necessary to check how such a resale is treated in the country of tax residence. This is a central point: the absence of local tax in Monaco does not rule out taxation elsewhere.
Neutrality of wealth tax at the Monegasque level
Monaco has no wealth tax at the local level. Here too, this is a strong structural advantage for international investors. It is nonetheless important to distinguish Monegasque taxation from that of the holder’s country of residence. This nuance is especially important for French tax residents, whose situation falls under a specific treaty framework.
Acquisition costs and securing your investment
While ownership is lightly taxed in Monaco, entering the market involves precise costs that must be built into your overall budget from the outset.
Duties and acquisition costs by profile
For a purchase of an existing property in one’s own name, or through a Monegasque civil company, the total acquisition cost is generally estimated at around 6.25%, excluding agency fees. In practice, this rate covers registration duties and notary fees. For a new or comparable property, the regime is more favourable, with an acquisition cost generally estimated at around 2.5%, excluding agency fees.
Where the purchase is made through a foreign or opaque company, the total acquisition cost is generally higher, around 11.5%, still excluding agency fees.
- Existing property in one’s own name: around 6.25%
- New property: around 2.5%
- Foreign / opaque company: around 11.5%
| Buyer profile | Estimated overall rate |
|---|---|
| Individual / Monegasque civil company (existing property) | Around 6.25% |
| New-build property | Around 2.5% |
| Foreign or opaque company | Around 11.5% |
To frame your project, you can read our guide: succeeding in real estate investment in Monaco.
The notary’s role in securing the transaction
The notary plays a central role in Monegasque transactions. They verify titles, centralise funds and provide the legal framework for signing the deed of sale. In such a specific market, this involvement is an important safeguard for a non-resident investor, particularly on questions of ownership, purchase structure and documentary compliance.
Managing rental income and regulatory constraints
Holding a property in Monaco can fit within a letting strategy, but it is still necessary to distinguish the taxation that applies to rents from the letting rules that depend on the property’s sector.
Taxation of rents received by non-resident owners
Monaco does not tax locally the property income received by an owner. The same applies to a non-resident at the Monegasque level. Your State of tax residence, however, may tax these rents under its own legislation and under the applicable treaties. This is therefore a point to address systematically, with an international reading of the case.
At the local level, a registered lease gives rise to a lease duty of 1% on the annual rent increased by charges. To explore the letting side further, you can read our letting guide.
Impact of laws 887 and 1235/1291 on managing the property
It is essential to distinguish the various housing regimes in Monaco. Not all properties fall within the open sector. Law 887 imposes specific conditions on tenant eligibility and lease duration, but it does not entail a rent cap in the sense of the most tightly regulated regimes.
The 1235 / 1291 regimes, by contrast, follow a logic that is more protective of the tenant and more strictly framed, particularly regarding letting conditions and rent changes.
Before buying a property intended for letting, you must check whether it falls within the open sector or a regulated regime. The impact on the choice of tenant, the lease duration and rent controls can be major.
- Open sector
- Law 887
- Law 1235 / 1291
Wealth structuring and specific points for French nationals
The case of French investors calls for particular attention. In Monaco, local taxation remains favourable, but the 1963 Franco-Monegasque tax treaty creates specific rules that can significantly alter the reading of a project.
The 1963 Franco-Monegasque tax treaty
For French nationals, the 1963 treaty is a central text. Depending on the case, it can lead to income taxation in France and to specific treatment of real estate assets.
For a French investor, the Monegasque reading alone is never enough. The situation must be analysed in the light of the Franco-Monegasque treaty and French tax law. It is therefore best to avoid oversimplified reasoning. The case of French nationals must be handled on a case-by-case basis, with a precise analysis of tax residence, nationality, the date of settlement and the ownership structure.
Choosing between ownership in one’s own name and a civil company
Ownership in one’s own name can offer simplicity. A civil company, whether Monegasque or otherwise, can on the other hand meet more structured objectives of succession or wealth organisation. The right choice depends on your tax residence, your holding horizon, your succession strategy and the level of transparency you are seeking. Any “standard” solution should therefore be avoided.
For tailored guidance, you can visit our bespoke service page.
Transmission and inheritance duties in the Principality
Inheritance duties in Monaco are particularly favourable in the direct line and between spouses, with a rate of 0%.
- 0% in the direct line and between spouses
- 8% between brothers and sisters
- 10% between uncles, aunts, nephews and nieces
- 13% between other collateral relatives
- 16% between unrelated persons
For real estate located in Monaco, this scale is a structuring element of wealth strategy, particularly within a logic of family transmission.
Mastering property taxation in Monaco therefore means clearly distinguishing local taxation, acquisition costs, letting constraints and any taxation in your State of residence. A rigorous reading of these subjects makes it possible to structure a coherent investment and to secure your assets over the long term.
FAQ
What property taxes apply to non-resident owners in Monaco?
Monaco levies neither property tax nor residence tax. This also applies to a non-resident who owns a property in the Principality. That said, these local taxes must always be distinguished from any tax that may be due in your country of residence.
How are acquisition duties calculated when buying property?
For an existing property, a purchase in one’s own name is generally estimated at around 6.25%, excluding agency fees. For new property, the acquisition cost is generally lower, around 2.5%. Through a foreign or opaque company, one should instead reckon on around 11.5%, excluding agency fees.
Is rental income received in Monaco taxable for a non-resident?
Monaco does not levy any local tax on property income. Your State of tax residence, however, may tax these rents. You must therefore always reason on an international scale.
What taxation applies to capital gains on resale?
There is no local Monegasque tax on the real estate capital gains of private individuals. But for a non-resident, the resale may be captured for tax purposes in their country of residence. This is a point to check before buying.
What are the inheritance rules for a property located in Monaco?
Properties located in Monaco fall under Monegasque inheritance duties. In the direct line and between spouses, the rate is 0%. For other beneficiaries, the scale depends on the degree of kinship.
Are there specific points for French nationals?
Yes. The case of French nationals must be analysed in the light of the 1963 Franco-Monegasque tax treaty. You should therefore never reason solely on the basis of local Monegasque tax rules.
