So many options to choose from – but the main ones will depend on the location and budget. There are many factors to take into consideration. If you are looking for a beautiful climate, a panoramic view of the Mediterranean and an exclusive place to relax in, Monaco could be the answer. Nestled in the corner of the Cote d’Azur with the Mediterranean sea on the other side, it is the ideal place for a luxury home – or even an apartment. To guide you with all details about property for sale in Monaco, a professional and experienced estate agent will be essential.
Some points to consider when looking for a house in 2021 are:
Safety and security: With Covid-19 upsetting the whole world, more people are looking to buy or rent homes in “safer” areas. The tiny Principality of Monaco offers just that. It is known as a haven, with security well taken care of by an armed national police force big enough to take care of every individual.
Climate and space: The sun-baked summers and cooler winters are ideal. Space is a problem since it is one of the smallest sovereign states in the world. However, the plan to reclaim land from the sea (about 15 acres) and construct the famous Le Portier (also known as Portier Cove or Mareterra) will provide additional space and plenty of new constructions. This is due for completion by 2025, but already buyers are showing interest in purchasing properties off-plan.
Environment: With healthcare now being a priority, the eco-friendly country has much to offer. The Government has a “Green is Glam” policy and has encouraged research and technology to improve all aspects. The parks are maintained beautifully, with a reduction of chemical treatments and preservation of water resources. Waste management and wastewater treatments are effectively run. Subsidies are given to purchase clean energy vehicles, and solutions are ongoing to decrease the “carbon footprint” (amount of CO2) produced during operation, for both new constructions and old buildings. Air and water testing is done to regulate the quality used for swimming. New seabeds are being formed to preserve all species of sea life.
Tax benefits: One of the main incentives in investing in property in Monaco is the tax benefits. There is no capital gains tax or wealth tax. Even property is not taxed except for rental properties which attract tax @ 1% of the annual income plus additional charges. The tax is 33.3% if real estate is sold at a profit. However, there is a levy where real estate losses can be adjusted against sales gains for five years. There is no personal income tax, nor is there an inheritance tax as a beneficiary. However, French nationals residing in Monaco need to pay their income tax to the French government as per its laws.
Also, the VAT is higher, and the corporation tax is 33%. Both employers and employees need to contribute significant sums for social insurance.
Monaco is on the CRS (Common Reporting Standard) which shares information regarding financial status globally. The government will check that you live there more than 183 days in a year to be a Monegasque citizen.
Transport: This aspect should be looked into for the convenience of the buyer/tenant. The rail system is run underground with easy access to France and links to major cities in Europe. Bus routes are frequent, mainly on the A8 – west to France and east towards Italy. There is no airport in Monaco, but there is one close by in Nice, France. There is a heliport in Fontvieille district with charters available. To save on ground transport, inclined elevators and travelators are available for the public.
Documentation: Foreigners are allowed to buy property in Monaco provided they can make contractual commitments according to their nation’s laws. The documentation is simple. A public Notary will be required to validate the agreement. Everything needs to be in writing, including the buyer’s bid and the seller’s offer with all relevant details. All negotiations will also be in writing. A deposit, usually 10% of the sale price, will need to be made. The purchase offer has real legal value in Monaco. A sales agreement can be drawn up to strengthen the authenticity of the deed.
Protection against liability/Insurance: Owners are usually liable for any violation of planning or environmental regulations. Tenants are held accountable for improper maintenance/use of the premises or inappropriate behaviour in the neighbourhood. Owners can limit their liability towards tenants by inserting relevant clauses into the agreement. Both owners and tenants can obtain insurance to cover hazards like fire, flooding etc. Specific insurance to cover all construction costs, such as architects, builders, contractors, can benefit the owner.
Conclusion: Monaco is the most expensive country in the world! Stability, economic growth and safety make it even more attractive! So, if you are looking to buy a property in this elite part of the world, either for your own residence/vacation home or as an investment for rental, it is worth considering all the many pros and relatively limited cons, by taking the expert advice of a professional real estate agent.