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Monaco real estate laws you should be aware of

The Principality of Monaco is a tax haven for the wealthy, which is why it is not uncommon to find one multimillionaire in every person in this small city-state. With sweeping views of some of the most beautiful natural landscapes in the world, Monaco is a dream come true for every person who can afford to live here.

If you are interested in purchasing a property in the area, take good care of your investment by educating yourself on all the necessary things that you need to know to make the process successful. In this article, we go over the most important real estate laws in Monaco for foreign investors.

Interested in purchasing real estate for sale in Monaco? There are certain legalities and technicalities that you should know about to protect your investment, as well as ensure successful results.


Buying a home in Monaco as a foreigner

The Principality of Monaco is famous for having the most expensive real estate market in the world; in fact, it is 13% more expensive than that of Hong Kong, which CBRE identified as the most expensive city in the world in their Global Living Index 2020 report. The small city-state of Monaco boasts of having one multimillionaire in every three of their 38,000 residents, and it draws in the wealthy because it is a tax-free haven.

As a foreigner who wants to invest in residential real estate in the area, a successful purchase is subject to a couple of rules and regulations. Let’s take a look at some of the most important aspects of the process.

Basic requirements

Foreigners are allowed to own property in Monaco, as long as you have the ability to commit to your contract and comply with your own country’s laws. Additionally, you must be able to deal with taxation matters, have administrative authorization to engage in professional activities in the city-state, and meet visa requirements to enter, travel around, and settle in French territory. You should also commit to steering clear of any money laundering activities.

Pre-contractual preparation

You don’t need to submit a letter of intent to buy one of the available homes or apartments for sale in Monaco. However, you will need to submit pre-contract draft agreements or accepted offers, which are legally binding agreements. During negotiation, the listing will not be taken off the market.

To manage these things, you will need to employ the assistance of a real estate agency or a broker, as well as a notary. In Monaco, real estate agents are regulated and must be certified by the relevant local authority. A notary, on the other hand, will help ensure a compliant and smooth transaction for the sale. Both will help you with your offer letter, which outlines your intention to purchase a property, and includes relevant details such as the description of the property, the purchase price, and the lock out date.

Sales contract provisions

When you have decided on a property, your sales contract must cover the following provisions:

  • Full identities of the seller and purchase, including individual matrimonial status
  • Full description of the property, as well as easements or special status as necessary
  • Property history over the last 30 years, at least
  • Guarantee against hidden defects; and
  • Price

Typically, during this phase, you will need to give a downpayment of 10% of the total price, which will be held in escrow until closing.


Once everything has been hashed out and agreed upon, the notary prepares the purchase contract, and you will need to complete the payment of the balance. Fees owed to the real estate agent and your notary will also be sorted at this stage; agent’s commission is typically 3% of the price of the property, and notary fees and other taxes will add an additional 6%. New construction will impose a 20% vat in lieu of registration tax.

Choosing a real estate agent in Monaco

To help you handle every phase of the process, working with a trusted real estate company is not only recommended—it is a must. In choosing, look for the following markers.

Scope of experience. Your real estate team in Monaco will play a direct role in the success of your home purchase, and it is imperative that you work with a group of people who have had extensive experience in helping foreigners settle in the city-state.

Quality of service. Your realtors must also have a history of delivering excellent service to satisfied clients. The way they do business will represent the kind of experience that you will have, and it is vital that your chosen company meet your standards.

Availability of properties. Finally, work with a team that has a comprehensive listing of available real estate properties, including luxury homes for sale in Monaco. This will ease the selection process, as well as help you know as much as you can about featured properties so you can inform your decision-making.

A trusted name in French Riviera and Monaco luxury real estate, Spark and Partners specializes in connecting clients to their dream homes in the region through personalized guidance and excellent customer service. It was founded and run by Monegasque businessmen, and has since grown to employ 19 individuals working in three locations, who offer deep knowledge of real estate prices and market insights, and can assist you in six languages.

The company has also recently obtained a fully French-regulated real estate license to manage, rent, and sell properties on the French Riviera. Their agents also have an extensive network that offers exclusive peeks into homes for sale in Monte Carlo and other areas in the city-state, as well as off-market apartments and villas.

Entrust your real estate investment to only the best because you deserve the best. Schedule a consultation with Spark and Partners at +377.97.777.000/+334.22.471.212 or hello(at)spark-estate(dotted)com. You may also connect with them on Instagram and Facebook.

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