Understanding the Real estate investment vehicles and taxes in Monaco 

Monaco has long been considered a tax haven due to its favorable tax laws and policies. Monaco law doesn’t impose an income tax on individuals acting within their private activities. Also, there is no wealth tax and capital gains tax for people, and no local taxes. So several people choose to call this jurisdiction home because it’s a high-profile tax haven. 

Although Monaco doesn’t tax individuals on their income and corporations which make most of their profits within the country tax-exempt, there are some important taxes imposed on real estate. 

Tax on the purchase and ownership of property in Monaco 

In Monaco, property registration, title registration, and notary fees together are taxed at 6% if the property is purchased by a person or a Monaco company owned by physical persons. But if the property is purchased by other types of companies or by foreign companies, it will be taxed at 9%. 

Taxes associated with the purchase of real estate in Monaco 

For new construction or new build properties in Monaco, 20% VAT is due instead of registration tax. Generally, the sale of a building plot and a new building by a taxable person acting as such, are subject to 20% VAT. 

But the sales of old buildings and land are exempt from VAT. The seller may choose to elect VAT on exempt transactions under specific conditions. 

Also, if these transactions are carried out by a non-VAT taxable person, they remain outside the scope of VAT, and an election for VAT is not available. 

Monaco Investment vehicle in real estate and the taxes related to it 

The Monegasque SCP – Société civile particulière (Monaco non-trading civil company) . 

Monegasque SCP is a non-commercial institution that enjoys several tax benefits due to a special tax regime in Monaco. The SCP can buy and rent real estate, it is also well suited for the development of property assets for private and family needs. 

Taxes that apply on a real estate property in Monaco 

• Transfer Duty 

In Monaco, registration duties (e.g, transfer tax) are charged upon transfer of ownership of Monégasque real property. 

Shares transfers of companies (Monégasque SCP) owning properties in Monaco are subject to a 4.5% tax, but 7.5% on the market value for any other purchaser. 

• Tax on the acquisition of shares in a company owning real estate in Monaco 

Acquisition of shares in a Monegasque SCP owning real estate in Monaco incurs a 4.5% tax on the share price if the purchaser is a private person or a qualifying Monegasque SCP, but 7.5% on the share price for other purchaser. 

• Capital gain taxation on disposal of real estate or shares in a company owning real estate in Monaco 

There is no capital gain taxation for individuals Monegasque tax residents. And no withholding tax on the sale carried out by a foreign company or an individual that is not a tax resident of Monaco. But capital gains are taxed on a sale carried out by a Monegasque resident company subject to corporate income tax in Monaco. 

If you are planning to purchase a real estate property in Monaco, note that due diligence must be carried out. These generally include municipal search, utility search, land registry search, company search, survey/valuation, and phase one environmental survey. This due diligence is important to the overall success of the transaction. In order to avoid undue difficulty, it’s best to let a professional handle all these. But fret not, your Damalion expert can assist. 

Are you planning to buy a property or set up your investment company in Monaco? – Let’s go ahead and contact your Damalion expert now and let us help. 

Understanding the real estate investment vehicles and taxes in Monaco – how acquisitions work, what taxes apply in 2025, and practical steps for buyers and investors.

For private investors, family offices, holding companies, SPVs and international groups • We help you scope the deal, prepare a clear profile, and coordinate with independent professionals. Acceptance and outcomes remain at the sole discretion of institutions and authorities.

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Key points at a glance

• No personal income tax for Monaco residents (specific rules apply to French nationals). No wealth tax and no annual property tax.
• Corporate income tax at 25% applies to businesses carrying out commercial/industrial activities that generate more than 25% of turnover outside Monaco or earn certain IP income.
• Property transfers usually attract registration/transfer duties. New builds are generally subject to 20% VAT instead of registration duty.
• Shares in a property-owning Monegasque company can also trigger transfer duties.
• Clear documentation and due diligence help move transactions forward efficiently.

Common ownership and investment vehicles

Vehicle	Overview	Typical use	Tax notes (2025)
Direct ownership (individual)	Buyer holds title in personal name.	Primary/secondary residence; long-term hold.	No personal income/wealth tax. Transfer duty on acquisition; no annual property tax. Capital gains tax generally not levied on individuals in Monaco; local rules in seller’s home country may apply.
Monegasque SCP (Société Civile Particulière)	Non-trading civil company used for holding and managing real estate.	Family asset holding; co-ownership; succession planning.	Share transfers typically attract 4.5% duty for qualifying purchasers (e.g., individuals or qualifying Monegasque SCPs) and 7.5% for others. Not a commercial company; no CIT unless carrying on taxable activities.
SARL / SAM (commercial companies)	Operating entities; can hold or develop assets.	Development, leasing, service activities around property.	25% CIT when more than 25% of turnover is outside Monaco or where certain IP income is derived. Capital gains realized by CIT-liable companies are taxable.
Foreign SPV (e.g., Luxembourg)	Cross-border holding structure with substance in home state.	Portfolio ownership, financing, co-investment.	Tax depends on home state rules and treaties. Monaco does not levy withholding on outbound dividends/interest under domestic law.

Main taxes and costs on property transactions

• Transfer/registration duty (existing property): commonly applied on deeds of sale; rate depends on the legal form and parties.
• VAT (new builds, certain land/building sales): standard rate 20% instead of registration duty where applicable.
• Share deals (company owning Monaco real estate): transfers of SCP shares typically 4.5% for qualifying purchasers; 7.5% for others.
• Notary and registration costs: payable on completion, based on schedules in force.
• Lease duty: leases may attract a fixed percentage duty on annual rent under applicable rules.
• Inheritance and gifts: duties depend on the relationship (0% in direct line; higher for distant relatives and non-relatives).
• No annual property tax: Monaco does not levy a recurring property/council tax.

Practical steps for buyers and investors

1. Define the profile. Purpose, budget, financing, timeline, intended use (own use or rental).
2. Choose the holding method. Direct title, SCP or corporate vehicle; consider cross-border effects.
3. Run due diligence. Title, land registry, planning, utilities, corporate checks for share deals.
4. Confirm taxes and costs. Registration or VAT, share-transfer duty, notary and professional fees.
5. Sign and complete. Execute agreements, pay duties, register title or transfer shares.

Related reading

• Original Monaco real estate taxes article
• International Real Estate — sale & investment services
• Real estate fund structuring services
• More articles in Real estate

Frequently asked questions

Do Monaco residents pay personal income tax?

Monaco does not levy personal income tax on residents for private activities. French nationals living in Monaco are generally taxed by France under the 1963 bilateral arrangements.

Is there an annual property tax?

No. Monaco does not levy an annual property or council tax on owned real estate.

What is the corporate income tax rate?

The standard corporate income tax rate is 25% for businesses within scope (notably commercial/industrial activities deriving more than 25% of turnover outside Monaco and certain IP income).

When does a property purchase attract VAT instead of registration duty?

New builds and certain taxable supplies by VAT-registered sellers are generally subject to 20% VAT instead of transfer/registration duty.

What duties apply to share deals in a property-owning SCP?

Transfers of shares in a Monegasque SCP that owns Monaco real estate typically attract 4.5% duty for qualifying purchasers (such as individuals or qualifying SCPs) and 7.5% for others.

Are capital gains on property taxed in Monaco?

Individuals who are Monaco tax residents are not subject to Monaco capital gains tax on disposals of property or of shares in property-owning companies. Companies subject to Monaco CIT are taxed on their profits, including gains.

Are there withholding taxes on outbound dividends or interest from Monaco companies?

Monaco domestic law does not levy withholding tax on dividends or interest paid by Monaco companies.

How are inheritance and gifts taxed?

Duties apply based on the relationship between parties; transfers in direct line (ascendants/descendants/spouses) are exempt. Higher rates apply for more distant relations and non-relatives.

What documents are required for a real estate acquisition?

Valid ID, proof of address, proof of funds; for entities, constitutional documents, registers and signatory powers. For share deals, corporate records and financial statements are reviewed.

Is financing available for non-residents?

Availability depends on lender policy, borrower profile and collateral. Banks may require enhanced due diligence and additional documentation.

Can a foreign company own Monaco real estate?

Yes. Ownership through foreign entities is possible, subject to registration and applicable duties. Cross-border tax considerations should be assessed.

Does Monaco have a wealth tax?

No. There is no wealth tax in Monaco.

Are leases subject to tax?

Leases may attract a registration duty calculated as a percentage of rent, according to the applicable rules and lease type.

Does the 25% turnover test apply to all companies?

It applies to commercial/industrial activities. In addition, companies deriving profits from certain IP (patents, trademarks, processes, literary or artistic property) fall within scope regardless of turnover distribution.

Do French nationals benefit from Monaco’s no-income-tax rule?

French nationals resident in Monaco are generally taxed by France on worldwide income under the 1963 arrangements, subject to specific exceptions set in those rules.

Are notary fees fixed or variable?

Notary fees follow regulated schedules and vary by transaction value and type of instrument. They are payable on completion.

Is title insurance common practice?

Transactions rely on notarial assurances and public registers. Title insurance is less common but may be considered depending on risk appetite and lender requirements.

What due diligence is standard in Monaco?

Land registry/title verification, planning and zoning checks, utilities confirmations, company searches for share deals, surveys/valuations and environmental screening as relevant.

Can transactions be completed remotely?

Many steps can be handled remotely with notarized and apostilled documents, subject to bank and notary requirements. Some steps may still require presence or a local proxy.

Who decides on bank onboarding and financing?

Each bank applies its own risk and compliance framework. Decisions are case-by-case and at the bank’s sole discretion.

10 Best Things to Do in Monaco, Monaco in 24 Hours

Maximize a tight schedule with official, easy-to-reach highlights clustered around Monte-Carlo and Monaco-Ville.

1. Casino de Monte-Carlo — Belle Époque landmark and gaming rooms. Jump to map
2. Oceanographic Museum of Monaco — marine science museum on the cliff.
3. Prince’s Palace (Palais Princier) — State Apartments + daily Changing of the Guard.
4. Monaco Cathedral — resting place of past Sovereigns.
5. Japanese Garden — calm landscaped park by the sea.
6. Larvotto Beach — city-beach promenade and swim spot.
7. Jardin Exotique (Exotic Garden) — panoramic cacti garden (check reopening status).
8. Monaco-Ville (Le Rocher) — old town streets and viewpoints.
9. Port Hercules — harbor walk and yachts.
10. Grand Prix Route Highlights — quick stroll past the Fairmont Hairpin and tunnel.

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