Does Monaco Have a Property Tax? (Complete Guide)

Seafront building in Monaco

Brief article summary:

Want to know whether Monaco taxes property ownership ? The answer can be summed up in one sentence: there is no annual property tax and no housing tax. What this guide clarifies, and what few articles quantify precisely, is the true cost of buying property.

Expect to pay around 6.25% of the purchase price in one-off acquisition costs: 4.75% in registration duties and 1.5% in notary fees, in addition to agency fees. On a €10 million property, that amounts to approximately €625,000 in acquisition costs.

The guide also covers how rental income and capital gains on resale are treated, as well as property purchases through companies.

Monaco’s Real Estate Tax System: Key Facts

Monaco offers an attractive fiscal environment for investors and residents, with no personal income tax and no property tax. This situation helps reduce the annual costs associated with owning real estate and allows you to focus on increasing the value of your assets.

Tax rules apply according to your resident status and the nature of the property, providing clarity in financial planning and long-term security. The transparency of the system also facilitates real estate transactions and property management.

What “No Property Tax” Really Means in Monaco

The absence of an annual property tax means you do not pay regular levies on your property. This significantly lightens the owner’s budget and allows more resources to be devoted to maintenance, renovation, or optimization of living space. However, it is important to understand that this exemption does not cover all costs associated with real estate.

Annual Holding Taxes That Do Not Exist

In Monaco, there is no residence tax, property tax, or local real estate levy. This absence of recurring charges simplifies the financial management of your properties and improves the net profitability of your investment. You can thus plan expenses more accurately and dedicate resources to projects that add value to your property.

Differences Between Local Taxes and Other State Revenues

Even though property taxes do not exist, Monaco generates revenues through other contributions, such as transfer duties during property purchases or certain taxes on economic activities. It is important to distinguish these one-time fees from annual charges to evaluate the actual cost of your investment. Understanding these differences ensures secure transactions and better budgeting.

Costs and Taxes When Purchasing Property in Monaco

Purchasing a property involves transfer duties and notary fees, calculated on the acquisition price. These costs constitute the first step of your investment and influence the profitability and financial planning of your project. Monaco has a transparent system that facilitates the assessment of these costs before purchase. Working with experienced professionals ensures an accurate estimate and avoids financial surprises.

The exact one-time cost of buying in Monaco

Buying property in Monaco carries no annual tax, but the one-time acquisition cost runs close to 6.25% of the purchase price, made up of registration duties around 4.75% and notary fees around 1.5%. Agency fees, typically 3% plus VAT paid by the buyer, come on top of this figure. For a €10 million apartment, this puts total acquisition costs, excluding agency fees, at roughly €625,000, and closer to €925,000 once a 3% plus VAT agency fee is included.

This structure differs meaningfully from countries that combine lower one-time fees with an ongoing annual property tax: a buyer moving from a market such as the UK or the US, where annual property tax can run 1% to 2% of assessed value every year indefinitely, should model Monaco's cost profile as front-loaded rather than recurring. Over a ten-year holding period, this generally favours Monaco financially compared with a market carrying meaningful annual property taxation, even before accounting for Monaco's absence of capital gains tax on resale for residents. The trade-off is liquidity at entry: the roughly 9% to 10% combined cost of registration duties, notary fees, and agency commission represents a larger upfront outlay than many markets require, which buyers should factor into financing and cash planning before making an offer.

Taxes Related to Real Estate Transactions

Every real estate transaction is subject to transfer duties, including registration fees and notary fees. These taxes vary depending on the type of property and its location in Monaco. Real estate experts assist in calculating these fees accurately, securing the transaction, and ensuring legal compliance. Integrating these costs into your overall budget provides a complete view of the investment and allows for informed decision-making with confidence.

garden

Rental Properties and Recurring Charges

Investing in a rental property in Monaco requires considering certain recurring costs related to management and maintenance. You are responsible for condominium fees, maintenance and insurance costs, as well as any improvement works.

These expenses are predictable and help ensure the longevity and value of the property. Working with an experienced property manager makes it easier to track these charges and optimize rental profitability while maintaining a high level of service for tenants.

Capital Gains and Wealth Implications Related to Real Estate

Monaco does not impose a capital gains tax on real estate for residents, making the resale of property more advantageous from a fiscal perspective. For non-residents, specific rules may apply according to international tax treaties. Estate planning around real estate allows you to maximize returns and anticipate impacts on inheritance or global investments.

Foreign investors and non-residents benefit from a favorable tax regime, with no local income tax. However, it is necessary to check tax treaties with their country of residence to understand potential obligations regarding income or capital gains.

In Monaco, there are no annual property taxes, unlike in other countries. Recurring costs are limited to condominium fees, insurance, and maintenance, with no direct state levy on the property itself.

Non-residents do not pay property tax in Monaco. The rules for owning and managing property are identical to those for residents, with the possibility of hiring a specialized agency to simplify administrative and financial management.

Rental income from a property located in Monaco is not taxed locally for residents. Non-residents should check their tax situation in their country of residence, as some international obligations may apply. Professional rental management ensures transparent reporting and optimization of this income.

Buyers pay approximately 6.25% of the purchase price in one-time costs: around 4.75% in registration duties and 1.5% in notary fees. There is no annual property tax on top of this. Including a typical agency fee of 3% plus VAT, total transaction costs land closer to 9% to 10% of the purchase price, all paid once at completion rather than spread across the ownership period, a structure that differs sharply from markets levying an annual property tax indefinitely.

No. Monaco levies no annual property tax, no residence tax, and no local real estate levy. Owners only pay recurring condominium charges, insurance, and maintenance costs, which are separate from state taxation and vary building by building depending on the services offered, security, concierge, pool, or parking among them. These charges, while not a tax, can still represent a meaningful recurring cost on larger or amenity-rich properties and should be budgeted alongside the absence of formal property taxation.

No. The registration duties, notary fees, and absence of annual property tax apply identically to residents and non-residents. Ownership rules and costs do not depend on residency status, unlike some countries that impose a surcharge or restrict certain property categories to non-citizens. A non-resident buyer in Monaco faces exactly the same acquisition cost structure as a resident buying an equivalent property.

Rental income is not taxed locally for Monaco tax residents. Non-residents should check their own country's tax rules, since income from a Monaco property may still be reportable and taxable where they hold tax residency, regardless of Monaco's own exemption. This distinction matters particularly for owners who rent out a Monaco property while remaining tax resident elsewhere: Monaco's favourable treatment does not automatically extend to their home country's tax authority.

Monaco does not levy a capital gains tax on property sales for residents, regardless of how much a property has appreciated since purchase. Non-resident sellers should check applicable tax treaties and their own country's rules, since Monaco's exemption does not automatically extend to tax obligations elsewhere: a non-resident owner may still owe capital gains tax in their country of tax residence on the profit from a Monaco sale, even though Monaco itself imposes nothing.

Yes. Purchasing through a civil company or foreign holding structure follows distinct fiscal rules from a direct individual purchase, and the specific rate and registration process depend on the structure chosen, the company's jurisdiction, and its ownership composition. This route is common among buyers seeking to separate personal assets from the real estate investment or to simplify future succession planning, but it requires tailored legal advice before signing, since an inappropriate structure can create unintended tax consequences in the buyer's home jurisdiction even when Monaco's own treatment remains favourable.

Other practical advice

Discover the full selection
Discover the full selection+33 668 78 99 43
Districts of Monaco - Complete Guide to Every Neighbourhood
Settling/Living in Monaco

Districts of Monaco

Read the guide
Buy a Second Home in Monaco - Complete Buyer's Guide
Property search

Buy a Second Home in Monaco

Read the guide
Why Hire a Property Hunter in Monaco ?
Property search

Why Hire a Property Hunter in Monaco ?

Read the guide
Balkin member on the phone with a client

It all starts with a discreet conversation

Your Monaco project deserves more than a transaction,
it deserves a trusted partner.

Speak with our team in confidence,  
and explore how we can assist you.
Arrange a private call
Arrange a private call+33 668 78 99 43