When it comes to real estate in Monaco, the first thing that comes to mind is luxury homes. But unbeknownst to many, this ritzy coastal principality offers excellent opportunities for property investors, too.
If you’re thinking of investing in Monaco, here’s why commercial properties are an excellent choice:
The perks of investing in Monaco commercial properties
With real estate, it’s all about location. And it’s hard to top the Côte d’Azur’s scenic location along the French Mediterranean. Buying a commercial property investment here means staking your claim on one of the most prestigious addresses in the world, offering you excellent potential returns. Here’s why:
- Advantageous tax system
There’s a good reason why Monaco has long been regarded as a tax haven for the ultra-wealthy. But those who dabble in commercial properties can benefit, too. If you own a rental property, you don’t have to pay any taxes on rental income. And should you decide to eventually sell your commercial property, you won’t have to pay any capital gains tax either.
- Affluent market
Another perk of owning commercial property in Monaco is its built-in market of well-heeled clients. Just how wealthy, you might ask? According to recent research by Knight Frank, roughly one in three Monaco residents is a millionaire. Regardless of what property or business you decide to invest in, you are sure to attract an affluent clientele who is willing and able to pay top dollar.
- Demand outstrips supply
Monaco is the second-smallest country in the world, with only about two square kilometers of real estate available. Constructible plots are dwindling by the year, meaning new developments are becoming increasingly rare. This scarcity means that your investment property’s value will only increase over time because real estate demand outstrips supply.
- History of robust growth
With real estate prices reaching up to €48,000 per square meter , buying a property in Monaco is a significant investment indeed. But the area has an excellent track record for growth that should reassure investors. For instance, the local real estate market has grown by an average of 5% per year over the last three decades. Furthermore, the price per square meter increased by 8% year-on-year from 2018 to 2019.
Considerations when purchasing commercial real estate in Monaco
With all of these favorable factors, Monaco is truly one of the world’s prime commercial real estate markets. That said, there are a few important things that investors must consider before signing the dotted line. Taking note of these will help ensure the success of your endeavor:
Can foreigners buy property in Monaco?
Yes. There are no ownership restrictions for foreigners, which is why Monaco is one of the best places to invest in real estate. It is recommended to work with a real estate agent who specializes in Monaco real estate to ensure a smooth transaction. Note that buying a property in the principality comes with attendant costs such as registration tax, VAT, and notary fees.
What property should I invest in?
There is a wealth of commercial property options in Monaco, ranging from office spaces to art galleries. But for your money, the safest and most lucrative investment are multi-family properties such as luxury apartments and high-end condominiums. Whether you’re investing in one or multiple units, these can provide tax-free rental income that will only grow as time passes.
Where should I buy property?
It depends on the commercial property that you wish to purchase. Monaco is a small country that is divided into roughly 10 neighborhoods. If you’re buying a corporate venue or retail space, then bustling Monte Carlo might be a good choice. If you’re investing in more residential properties, however, the quieter Les Révoires is an excellent starting point.
Who will manage the property?
Whether you buy a retail or rental property, you must have a game plan on how it will be managed. You likely won’t be relocating to Monaco to oversee your investment, so hiring a trustworthy property management firm is a must. Aside from supervising the day-to-day operations of your property, it will also find qualified tenants on your behalf.
Commercial real estate in Monaco is an asset like no other. And Spark & Partners has a varied portfolio of investment properties that will surely meet your business goals.
Work with one of the leading realtors in Monaco to get exclusive access to prime real estate that will surely be worth your time and investment. To learn more, call our team at +377.97.777.000 or email hello@spark-estate.com. You can also send a message here.