Monaco – Property Taxes

What taxes and fees apply when buying a property in Monaco?

Acquiring property in Monaco brings with it a number of transaction costs that can add considerably to the headline purchase price. Beyond the agreed consideration, buyers should anticipate notary fees, registration tax or VAT, transfer duties, and agent commissions — costs that generally fall somewhere between 6% and 9% of the purchase price depending on the buyer’s circumstances. Understanding which tax regime applies to each category of property is the essential starting point for any budget.

Registration (transfer) tax on resale properties. Proportional registration duties apply to transfers of Monaco real estate wherever VAT is not applicable. The rate is 4.5% on the market value where the purchaser is a private individual or a qualifying Monegasque Personal Civil Company (SCP), subject to certain conditions being satisfied. Where the purchaser is a non-transparent entity — such as a foreign company, trust, or comparable structure — registration duties rise to 7.5% on the transfer price. Unlike the tiered stamp duty bands used in the United Kingdom, Monaco’s registration duty is charged at a flat percentage applied to the full market value of the property.

VAT on new-build properties. VAT becomes relevant when an individual purchases from a VAT-registered person established in Monaco a building plot, a newly constructed building, or an existing property that has undergone height-raising works or significant renovation — the applicable VAT rate for such property transactions is 20%. Certain purchases fall outside the scope of VAT where the assets concerned qualify as “old buildings” — that is, properties that do not satisfy the definition of “new buildings” — together with land sales not classified as building plots. Buyers should always confirm with the Monaco Department of Tax Services whether a particular property attracts VAT or registration duty.

Notary fees. Notary fees when purchasing Monaco property are typically around 6% of the purchase price for individuals or Monaco SCIs, and approximately 9% for foreign companies. Sources vary in how they divide this total between the registration duty component and the notary’s own professional charge. A widely cited breakdown for individual buyers on a resale transaction is a transfer tax of approximately 4.5% and a notary professional fee of approximately 1.5%, producing an aggregate cost of around 6%. The precise split should be confirmed with your appointed notary before any preliminary contract is signed.

Share transfers in property-holding companies. Transfers of shares in companies owning Monaco real estate are also subject to tax. Where the buyer qualifies as a private individual or a qualifying SCP, the rate is 4.5%. For all other categories of purchaser, the rate is 7.5% applied to the share price or the market value of the underlying property, whichever is the higher.

Estate agent fees. Agency commissions are typically 5% (plus 20% VAT) for sellers and 3% (plus 20% VAT) for buyers. Given Monaco’s exceptionally high property values, these charges represent material sums and must be incorporated into financial planning from the outset.

Worked example (resale property, individual buyer, as of 2025). On a resale apartment acquired for €5,000,000 by a private individual:

• Registration/transfer duty at 4.5%: €225,000
• Notary professional fee (approx. 1.5%): €75,000
• Buyer’s agent fee at 3% + 20% VAT: €180,000
• Estimated total additional costs: ~€480,000 (approx. 9.6% of purchase price)

Always verify current rates with your notary and the Monaco Department of Tax Services before proceeding, as figures are subject to change.

Who pays what? Registration duties and notary fees are customarily borne by the buyer. Agent fees may be allocated to either party or shared, depending on the terms negotiated, though sellers conventionally carry the higher 5% commission. There is no formal difference in the tax rates applied to residents compared with non-residents at the level of the individual; however, the buyer’s legal structure — whether an individual or a non-transparent corporate vehicle — has a decisive effect on which rate applies.

What taxes and fees apply when selling a property in Monaco?

The fiscal burden on a seller in Monaco is considerably lighter than in most other countries, primarily because individual residents are not subject to capital gains tax on property disposals and there is no transaction-specific sales tax levied directly against the vendor. The principal costs that sellers face are commercial rather than fiscal.

Agent commission. The seller’s agent commission is typically 5% plus 20% VAT. On a €5,000,000 disposal, this produces a total agent fee of €300,000 including VAT — the single largest expense most sellers encounter on completion.

Notary and legal fees. Notary fees reflect the professional service provided in formalising the transaction. Lawyers’ fees cover due diligence work and representation at the notarial completion stage. Sellers typically engage legal representation for the execution of the final deed (the acte de vente), and the cost will vary with the complexity of the transaction.

Registration duties — who bears them? The transfer of a real estate asset located in Monaco gives rise to registration duties and notary fees. By established convention, and in the great majority of transactions, registration duties are charged to the buyer rather than the seller. That allocation is in principle open to contractual negotiation, however, and sellers should ensure it is addressed explicitly in the preliminary sale agreement.

Corporate sellers. Where the vendor is a Monegasque company subject to corporate income tax, the treatment of gains differs from the position for individual sellers — this is addressed in the capital gains section below. Individual sellers who are Monaco tax residents face no personal income or gains tax liability on a disposal. French nationals residing in Monaco continue to be governed by specific rules under the Franco-Monegasque bilateral convention and must seek specialist cross-border tax advice before completing any sale.

How does capital gains tax work on property in Monaco?

Monaco’s appeal rests in part on a straightforward and highly attractive reality: individual residents pay zero direct personal tax — no income tax, no capital gains tax on property sales, and no annual wealth tax. This feature distinguishes Monaco sharply from most European jurisdictions, where capital gains tax on property disposals is a routine feature of ownership.

Individual Monaco residents. There is no income tax for individuals whose tax residency is in Monaco. Monaco-resident individuals are not liable to Monegasque income tax in connection with either the ownership (including rental income) or the disposal of real estate, whether the property is situated in Monaco or elsewhere in the world. This means there is no gain to compute, no indexation to consider, no distinction between short-term and long-term holding periods, and no exemptions to navigate — because the tax simply does not exist for qualifying residents.

Non-resident individuals selling Monaco property. In the case of a disposal by a foreign company or an individual who is not tax resident in Monaco, Monaco imposes no withholding tax. The absence of Monegasque taxation does not, however, extinguish any liability in the seller’s country of residence. Most jurisdictions tax their residents on worldwide gains, so a non-resident disposing of Monaco property may still incur a capital gains tax obligation at home. Advice from a tax specialist familiar with both Monaco and the seller’s country of residence is essential.

Corporate sellers subject to Monaco business profits tax. Where the vendor is a Monegasque resident company subject to corporate income tax in Monaco, any capital gain is taxable at the corporate income tax rate — 25% as of 2022. Capital gains arising from the transfer of fixed assets are exempt from tax to the extent the proceeds are reinvested. This reinvestment relief is a meaningful planning consideration for corporate property investors. Current corporate tax rates should always be verified with the Monaco Department of Tax Services.

French nationals. Monaco residents, with the exception of French nationals governed by a bilateral convention concluded between France and Monaco in 1963, are not subject to income tax. French nationals who established Monaco residence after 13 October 1957 remain liable to French income tax. This means French nationals disposing of Monaco property may be subject to French capital gains tax even while living in the Principality, making specialist cross-border advice indispensable.

Worked example (individual Monaco resident, as of 2025). A Monaco-resident individual acquires a property for €3,000,000 and disposes of it five years later for €4,500,000, crystallising a gain of €1,500,000. Their Monegasque capital gains tax liability: €0. The principal financial exposure on disposal is the seller’s agent commission (typically 5% plus VAT) and associated legal costs.

Are there any ongoing annual property taxes in Monaco?

Monaco levies no income tax, wealth tax, annual property tax, or council tax. This stands as one of the most immediately striking contrasts with property ownership in the majority of European countries. Where the United Kingdom charges council tax, France levies the taxe foncière, and the United States imposes various forms of recurring property tax, Monaco applies no annual charge based on property ownership or assessed value.

For non-residents — whether individuals or companies — income derived from real estate located in Monaco is not subject to withholding tax in Monaco. The complete absence of property taxes makes the Principality an appealing destination for real estate investment from a holding-cost perspective.

There is equally no wealth tax in Monaco and therefore no real estate wealth tax. France, by contrast, applies the Impôt sur la Fortune Immobilière (IFI) to net real estate assets exceeding a threshold of €1.3 million. Monaco has no comparable charge for any owner, regardless of the scale or value of their property portfolio.

The leasehold tax. One charge connected to property does exist: a 1% leasehold tax — effectively a tax on residential rents — which is payable by the tenant rather than the landlord. This duty, levied on the annual rent inclusive of service charges, is registered against the lease and falls entirely on the occupier. Landlords should be aware of this when structuring lease agreements, since it forms part of the tenant’s total housing outgoings.

There is no periodic reassessment of property values for fiscal purposes, no municipal rates bill, and no equivalent of the recurring land value taxes found in jurisdictions such as Australia or Singapore. Once the costs of acquisition have been settled, a Monaco property owner faces no ongoing fiscal charge from the Principality that relates specifically to holding or owning real estate.

How does inheritance tax apply to property in Monaco?

Inheritance tax applies to property situated within the territory of the Principality of Monaco — or with its situs in Monaco — irrespective of the domicile, residence, or nationality of the deceased or the beneficiary. This is the fundamental principle: the trigger for Monegasque inheritance tax is the location of the asset, not the personal status of either party.

Inheritance tax is confined to assets located in Monaco, regardless of where the deceased was domiciled or resident. Conversely, Monaco inheritance tax does not extend to property situated outside the Principality, even where the deceased was a Monaco resident — though other jurisdictions may impose their own succession duties on foreign-situated assets belonging to their taxpayers.

Rates by relationship. Inheritance and gift tax is charged at rates ranging from 0% to 16%, determined by the degree of relationship between the parties. Monaco imposes no inheritance or gift tax between spouses or between parents and their children. The maximum rate of 16% applies to transfers between entirely unrelated parties. Gifts made by will or otherwise to certain qualifying charitable entities may attract a full tax exemption. The precise rate bands applicable to intermediate relationships — siblings, uncles and aunts, and more distant relatives — should be confirmed directly with the Monaco Department of Tax Services or a qualified local notary.

Non-resident heirs. A foreign national has the same entitlement as a Monegasque to inherit property owned in the Principality by a relative, whether that relative is a foreigner or a Monegasque national. The rates described above apply to all beneficiaries — resident and non-resident alike — in respect of Monaco-located assets. A non-resident heir may additionally face inheritance tax obligations in their own country of residence, potentially giving rise to double taxation. The France–Monaco bilateral convention of 1 April 1950 provides specific relief for French and Monegasque nationals in Franco-Monegasque successions.

Forced heirship. Monaco, following French legal tradition, maintains protective provisions for certain categories of heir — most notably children — who enjoy statutory protection preventing total disinheritance and guaranteeing them a reserved portion of the estate. This hereditary reserve varies according to the number of protected heirs called to the succession. Estate planning involving Monaco property should be undertaken in close collaboration with a qualified Monegasque notary or lawyer, particularly where the law of the deceased’s nationality treats testamentary freedom differently. For current rates and thresholds, consult Monaco’s official inheritance tax guidance.

How does gift tax apply to property transfers in Monaco?

Gift tax in Monaco applies only to assets situated in the Principality, regardless of the domicile, residence, or nationality of the donor. Gifts must be formalised by a notarised deed and are subject to gift tax at the same rates as inheritance tax, meaning that the identical relationship-based rate structure that governs transfers on death also governs lifetime transfers of Monaco property.

Monaco imposes no inheritance or gift tax between spouses or between parents and their children. For many families, this makes lifetime gifting of Monaco property a highly tax-efficient strategy in comparison with jurisdictions such as France, where gift tax applies even to direct-line transfers above prescribed allowances, albeit subject to significant reductions. It remains important to verify that the 0% rate applies to the specific relationship between donor and recipient in any given case, since the rate climbs progressively as the degree of family connection diminishes.

Where Monaco-situated assets are given — whether by will or otherwise — to qualifying charitable institutions or to the Principality itself, a tax exemption applies. This creates a route for philanthropic transfers that avoids gift tax entirely on assets located in Monaco.

Implications for non-residents. A non-resident donor transferring Monaco property by way of gift will trigger Monaco gift tax at the applicable relationship-based rate on the Monaco-sited asset. The donor’s country of residence may also levy its own gift or wealth transfer tax on the same transaction. Where the donor is a French national, the France–Monaco bilateral convention of 1 April 1950 governs the interaction between French and Monegasque succession and gift taxes. Cross-border advice is strongly recommended in all such cases. Current rates and registration obligations can be verified with the Monaco Department of Tax Services.

How is rental income from property taxed in Monaco?

There is no income tax for individuals whose tax residency is in Monaco. Monaco-resident individuals are not liable to Monegasque income tax on rental receipts — or on any other income derived from owning or disposing of real estate, whether the property is situated in Monaco or abroad. This places Monaco among a very small group of jurisdictions worldwide where a resident landlord faces no income tax whatsoever on rental income.

The rental duty (droit de bail). In place of income tax, Monaco levies a modest rental duty (droit de bail) at 1% of the annual rent plus service charges. Crucially, this leasehold tax falls on the tenant rather than the landlord. Landlords are required to register their lease agreements so that the duty can be applied, but the financial burden rests with the occupier rather than the property owner.

Non-resident owners. For non-residents — whether individuals or companies — income derived from Monaco real estate is not subject to withholding tax in Monaco. This is a notable advantage: unlike France, which charges both income tax and social levies on non-resident landlords’ French rental receipts, Monaco imposes no equivalent charge. A non-resident owner will, however, almost certainly be required to declare Monaco rental income to the tax authority in their country of residence, where it may be taxed at domestic rates. Advice from a tax specialist in the relevant country of residence is essential.

Short-term and holiday lets. The tourist contribution tax introduced in January 2024 does not currently extend to furnished rental properties such as those let through platforms like Airbnb. The broader regulatory framework — including registration and licensing obligations for short-term landlords — is evolving, and prospective holiday-let operators should verify current requirements with the Monaco government or a local legal adviser before commencing short-term lettings.

Worked example (Monaco-resident individual, long-term let, as of 2025). A Monaco-resident individual lets a property at €10,000 per month (€120,000 per year). Their Monaco rental income tax liability: €0. The tenant pays the 1% leasehold duty (€1,200 per year) separately. The landlord’s obligations are essentially administrative — principally lease registration — rather than fiscal. Were that same landlord also a French national, French income tax rules would apply to the rental receipts under the bilateral convention.

For current thresholds and landlord registration requirements, consult the Monaco Department of Tax Services.

Are there any tax advantages or incentives for buying property in Monaco?

Monaco is sometimes described as a “completely tax-free” jurisdiction, which is not strictly accurate — while many taxes do not exist in the Principality, others do. That said, the cumulative effect of the various tax absences amounts to a structurally compelling set of advantages for property buyers, particularly those who intend to establish residency.

Zero personal income, capital gains, and wealth tax for residents. Monaco-resident individuals pay no income tax, no capital gains tax on property disposals, and no annual wealth tax. Considered together, these three absences represent the heart of Monaco’s tax appeal for resident property owners, compared with jurisdictions where all three could apply concurrently — sometimes at combined rates exceeding 45%.

No ongoing holding costs. Monaco levies no recurring property taxes or council taxes. This means that retaining a Monaco property over time is not steadily eroded by the kind of annual municipal or wealth-based charges that are standard across most of Europe. Unlike the French taxe foncière — which even non-resident owners must pay each year — there is no equivalent annual fiscal demand in Monaco.

Corporate reinvestment relief. Capital gains arising from the transfer of fixed assets held by a Monaco company subject to business profits tax are not subject to tax where the proceeds are reinvested. This provides a meaningful incentive for corporate property investors to recycle disposal proceeds into new assets rather than distributing taxable gains.

Inheritance advantages for the direct family line. Monaco imposes no inheritance or gift tax between spouses or between parents and their children. Transferring Monaco property to the next generation — either during the owner’s lifetime or on death — can therefore be structured with no Monegasque tax cost, a significant benefit compared with many countries where inheritance tax on high-value residential property can be substantial.

Residency as the gateway. Access to the personal tax framework — with its zero income, capital gains, and wealth taxes — depends entirely on successfully completing the Monaco residency application process. Residency requires evidence of sufficient financial means (around €550,000+), a clean criminal record, and appropriate housing in the Principality. Prospective applicants should verify current thresholds and procedural requirements directly with the Monaco government, as these figures are indicative and subject to change.

There are no publicly documented first-home buyer schemes, historic property renovation tax incentives, or investment visa tax concessions specific to Monaco property at the time of writing. Prospective buyers should consult a qualified Monaco tax or legal adviser to understand how the overall framework applies to their individual circumstances.

What are the tax implications for foreign nationals buying property in Monaco?

Foreign nationals may purchase real estate in Monaco without restriction. There are no additional surcharges, ownership quotas, or foreign-buyer penalties of the kind found in certain other markets — such as Canada’s foreign buyer tax or Singapore’s additional buyer’s stamp duty for non-residents. The same registration duty rates apply to all buyers: 4.5% for individuals and transparent entities, and 7.5% for non-transparent structures such as foreign companies.

Transfer tax by legal structure. Purchases of Monaco real estate by non-transparent entities — including foreign companies, trusts, and analogous structures — attract registration duties of 7.5% on the transfer price. Where the buyer is a transparent entity such as an individual or civil company, the rate falls to 4.5%. Foreign buyers considering a corporate acquisition structure should therefore assess whether restructuring as a qualifying Monaco SCP in advance of purchase might reduce the registration duty by three percentage points — a saving that can be highly significant at Monaco’s property price levels.

Annual disclosure obligations for corporate owners. Foreign companies and Monegasque companies classified as non-transparent that hold Monaco property must appoint a Monegasque tax representative and submit an annual declaration of their property ownership. This administrative obligation should be factored into the ongoing cost of maintaining a corporate ownership structure.

Home-country tax obligations. Non-resident buyers who do not take up Monaco residency will remain tax resident in their home country and should obtain advice on how Monaco property ownership, rental receipts, and eventual sale proceeds are treated under domestic law. Many jurisdictions operate worldwide taxation on income and gains, and some have specific rules governing foreign-situated immovable property. Double taxation treaties are relevant in this context: aside from France, Monaco has concluded no other bilateral fiscal agreements. This means buyers from countries other than France benefit from no formal treaty framework to mitigate double taxation between Monaco and their home jurisdiction. The risk of overlapping fiscal exposure — for instance, Monaco registration duties on acquisition combined with home-country taxation of rental income or disposal gains — should be carefully assessed with professional guidance.

French nationals: a special case. Monaco residents, with the exception of French nationals governed by the bilateral convention of 1963 between France and Monaco, are not liable to income tax. French nationals who took up residence in Monaco after 13 October 1957 remain subject to French income tax. French nationals acquiring Monaco property — whether as Monaco residents or as non-residents — should treat specialist Franco-Monegasque tax advice as a priority obligation rather than an optional precaution.

AML and source-of-funds requirements. Buyers are required to provide comprehensive documentation demonstrating the origin of purchase funds, including bank statements and income records. Monaco has substantially reinforced its anti-money laundering framework in recent years. In October 2025, Monaco signed an updated protocol with the European Union strengthening the automatic exchange of financial account information, aligned with the OECD’s revised Common Reporting Standard (CRS 2.0). This protocol, entering into force on 1 January 2026, extends reporting obligations to digital currencies and electronic money products. Foreign buyers should anticipate rigorous KYC checks and engage a Monegasque notary and legal adviser at the earliest stage of the transaction process. For current guidance, consult the Princely Government of Monaco.

Frequently asked questions: property taxes in Monaco

Do I pay capital gains tax if I sell my Monaco property as a non-resident?

Monaco does not impose withholding tax or any form of capital gains tax on disposals by non-residents. The Principality levies no tax on the gain. Your country of residence may, however, tax that gain under its own domestic rules. You should consult a tax adviser in your home jurisdiction before completing any sale, bearing in mind that treaty protection against double taxation with Monaco is available only to French nationals under the bilateral convention.

Is there a wealth tax on property in Monaco?

There is no wealth tax in Monaco and therefore no real estate wealth tax. This applies to both residents and non-residents in respect of Monaco-sited property. Unlike France, which levies the IFI (Impôt sur la Fortune Immobilière) on net real estate assets above €1.3 million, Monaco has no equivalent annual charge. Non-residents should verify whether their home country operates a worldwide wealth tax capable of capturing Monaco property within its scope.

Can I deduct mortgage interest on rental income in Monaco?

Monaco-resident individuals pay no income tax on rental receipts at all, so the question of mortgage interest deductibility does not arise in the same way as in other countries. Monaco also imposes no tax on Monaco-sourced rental income for non-resident owners, meaning there is no Monegasque deduction mechanism to engage. If you are taxed on Monaco rental income in your country of residence, whether mortgage interest is deductible will depend entirely on that country’s domestic rules. Consult a tax adviser in your country of residence for guidance.

What is the transfer tax rate for a foreign company buying Monaco property?

Purchases of Monaco real estate by non-transparent entities — including foreign companies and trusts — are subject to registration duties of 7.5% on the transfer price (as of 2025). This compares with the 4.5% rate applicable to individual buyers and qualifying transparent structures. At Monaco’s property values, this difference is financially significant and should be a central consideration in any acquisition structuring exercise. Verify current rates with the Monaco Department of Tax Services before committing to any transaction.

Do children inherit Monaco property tax-free?

Monaco imposes no inheritance or gift tax between spouses or between parents and their children (as of 2025). Property passing from parent to child — whether on the parent’s death or by way of lifetime gift — attracts no Monaco inheritance or gift tax. This is a meaningful estate planning advantage. The child may nonetheless face tax obligations in their own country of residence in respect of the inherited or gifted asset, depending on that country’s domestic law.

Are there any annual property taxes I need to budget for as a Monaco property owner?

There is no income tax, wealth tax, annual property tax, or council tax in Monaco. Once the costs of acquisition have been met, a Monaco property owner faces no recurring Monegasque fiscal charge based on property ownership or value. The only ongoing charge connected to property is the 1% leasehold duty on rents — and this falls on the tenant rather than the landlord.

Is VAT charged on all Monaco property purchases?

No. VAT at 20% applies to new-build properties, whereas resale (old) properties are generally subject to registration duty at 4.5% for individual buyers instead. The classification of a property as “new” or “old”, and whether the vendor is registered for VAT, determines which regime applies. Your notary should confirm the applicable tax treatment before you sign any preliminary contract.

Does Monaco have any double taxation treaties to protect me as a foreign buyer?

Aside from France, Monaco has signed no other bilateral fiscal agreements. Buyers from countries other than France therefore benefit from no formal treaty framework to prevent double taxation between Monaco and their home jurisdiction. In practice, Monaco imposes very limited taxation on individuals — the principal charge being the registration duty on acquisition — so the double taxation risk relates primarily to home-country taxation of Monaco rental income or disposal gains. Professional advice from a specialist familiar with both Monaco and your country of residence is strongly recommended before proceeding.