The Principality of Monaco is the second smallest country in the whole world, occupying only about two square kilometers, with a population of less than 40,000. If you’re moving here from a country or city that’s too crowded, Monaco indeed sounds like the great escape you need.
If you’ve made up your mind about relocating to this country, you made a good choice because there are no restrictions for expats who’d like to own real estate here. The prime residential area of Monte Carlo has many great properties for sale that you might want to check out with your realtor.
That said, here’s what you need to know about buying a property in Monaco:
Because Monaco is a small country that’s densely populated, you might have some misconceptions about it. You’ve probably thought that it’s totally free of a city’s hustle and bustle, or that it isn’t diverse enough, but both aren’t true at all.
Monaco has a reputation of glamour, with its casino being one of the reasons tourists love this country. It’s also one of the safest countries in the world, and their police force is one of the largest in the globe. They aren’t part of any international disputes as well.
You can cross the entire width of the country in about an hour; consider that your daily exercise routine once you’ve moved into this country! It’s also near the Mediterranean sea, so you’d have a view of the beach every day.
Their official language is French but Italian and English are also widely spoken, so if you’re coming from an English-speaking country, you won’t encounter language barriers here.
Real Estate Prices
Monaco’s real estate is one of the most expensive in the world. Apartments are the most widely sold type of home, with varying sizes from studios to triplexes to penthouses.
If you’re buying an apartment, studio types without a sea view generally cost €1.5 million, and those with a sea view can shoot up to €3.5 million. The price gap goes significantly wider between four- to five-bedroom apartments, from €13.3 million to €67 million. The factors affecting the prices include sizes and views. Properties closer to the sea and the Formula 1 circuit are more expensive.
Fontvieille is a district with less noble access, and its properties have supplementary discounts. But due to the continuous development of this location, the property prices are also seen to increase in time.
How to Buy a Property
First, you need an agent. 99% of property transactions in this country are signed through real estate agencies. Once you’ve chosen a property, you’d only need to sign the contract and transfer the deed before the notary.
Upon signing the contract, buyers are required, in most cases, to pay a 10% deposit. They may also be asked to sign an offer or a pre-contract, especially if the market is booming.
As you buy a property, you would be required to pay these additional fees:
- Registration tax – 4.5% of the property price
- VAT – If the property is new, the registration tax will be replaced by a 19.6% Value Added Tax.
- Notary fees – If the apartment you bought is in a new building, you’d pay a notary fee that’s 2.5% of the property’s value. But generally speaking, notary fees range from 1.5% to 2.5% of the property’s value.
- Agent fee – Agents are entitled to a 3% commission.
Despite the hefty prices, Monaco isn’t solely inhabited by rich people. Many ordinary working people also reside in this country, so you’ll surely fit in as long as you can afford the costs of living here.