Notary and Registration Fees Related to the Acquisition of Real Estate or Real Estate Rights in Monaco
Monaco, located on the French Riviera, is a sought-after location for real estate investment due to its political stability, pleasant climate, and attractiveness as a financial centre. However, acquiring real estate in Monaco is subject to strict regulations and involves specific notary and registration fees. In this article, we will explore the main elements to consider regarding notary and registration fees when purchasing real estate or real estate rights in Monaco.
The Role of the Notary in Monaco
In Monaco, notaries play a crucial role in the real estate acquisition process. To date, the Principality has three distinct notary offices. One of their main responsibilities is to draft the deed of sale and to be present as a witness during its signing, thus guaranteeing its legal validity. They are responsible for verifying the legitimate ownership of the property by the seller, as well as ensuring that there are no major obstacles to the completion of the sale so that the transaction can be executed with unquestionable legitimacy.
When you decide to submit a purchase offer for a property in Monaco, it is imperative to appoint a notary, whose name will appear in the written offer. Once the purchase price has been agreed upon, a 10% deposit must be paid to the notary. This advance can be paid as soon as the offer is accepted or at the time of signing a preliminary sale agreement, particularly when suspensive clauses related to the acceptance of a mortgage loan by a financial institution are included in the purchase conditions. Once all the deeds are established and the sale is ready to be finalised, a final appointment is arranged for both parties to sign the transaction in front of the notary. It is also at this time that the balance of the purchase price, as well as the notary and agency fees, are settled.
Notary and Registration Fees Depending on the Nature of the Acquisition
Notary and registration fees in Monaco vary depending on the nature of the acquisition. Here are the applicable rates:
- Acquisition of a new property or property under construction: For this category of acquisition, the fees amount to 2.5% of the property’s value, divided as follows: 1.5% for notary fees and 1% for registration rights.
- Acquisition by an individual or a civil company registered in Monaco: In this case, the fees reach 6.25% of the property’s value. This amount is composed of 1.5% notary fees and 4.75% registration rights.
- Acquisition through the real estate dealer regime (professionals only): for professionals operating in this field, the fees are limited to 1.5% of the property’s value, covering only notary fees. However, it is essential to note that the property thus acquired must be resold within 4 years, otherwise a penalty of 6%, in addition to the transfer duties of 4.5%, will be applied to the property’s value.
- Acquisition of shares in a civil company registered in Monaco and holding real estate: In this situation, the fees are 4.75% registration rights, calculated on the value of the property, plus notary or lawyer fees.
- Acquisition through an offshore or foreign company: For acquisitions made through an offshore or foreign company, the fees amount to 10% registration rights on the property’s value, in addition to 1.5% notary fees.
- Acquisition of a property on a life annuity basis: When acquiring a property on a life annuity basis, the fees are calculated on the value of the capital (when it exists) and on the sum of 10 years of annuity (when it exists). These fees represent 6.25%, i.e., 1.5% for notary fees and 4.75% for registration rights. To these fees, real estate agency fees payable by the buyer will be added, established by the Monegasque Real Estate Chamber and which are 3% + VAT in force, currently 3.6% of the sale amount.
If the acquisition is financed by a mortgage loan, a registration right of 0.92% on the amount of the mortgage allocation will be expected. Depending on the type of financing, other costs may apply.
If the acquisition of real estate in Monaco piques your interest, we invite you to explore our most recent opportunities for property sales in the Principality.
