Monaco is notoriously known as a playground for the rich and famous due to its appealing combination of warm Mediterranean weather, tight security and of course, the advantageous tax system it offers its residents, all of which support the Monaco property prices.
A recent report revealed that the luxury property market in Monaco has regained momentum with an uplift of up to 10% for the best properties.
Adding to this, last week’s breaking news that big spenders AS Monaco are considering making a bid for the world’s most expensive footballer, Cristiano Ronaldo, fans of the world’s top player might be thinking it’s an ideal time to purchase an overseas property.
Monaco is, in fact, less than two square kilometres in size, but contains some of the world’s most expensive real estate. Prices vary widely according to the location of the property, the building, and the size of the apartment or house. Prices are also quoted by the square metre and can range from €50,000 per square metre (or higher in some cases) to the average of €25,000 per square metre.
New builds and good quality, well refurbished existing buildings are very much in demand and it is these properties that have seen the biggest uplift in prices, with the Carre d’Or and Larvotto areas being the most expensive.
Mortgages are available to purchase property and the minimum loan value is set at €500,000, with no maximum. The loan to value rate is up to 80% on repayment, and 70% on interest-only mortgages, with the interest rate starting at 2.20% in Euros.
There are no specific restrictions on foreign buyers, but they must have a minimum income of €100,000 per annum. Monaco also allows buyers to purchase a property in either their own name, or in a company name, as long as it is UK, French, Isle of Man, British Virgin Islands, Luxembourg or Swiss registered.
The affordability restriction in Monaco is a maximum of 33% of someone’s total net monthly earned income which can then be used to repay any new or outstanding debt.
It is also worth mentioning that there is a relatively new law in Monaco that cuts registration tax on sales to 4.5%, with the added bonus that investors can rent out property in the tiny principality without having to pay tax on rental income.
The Principality has acquired a reputation as a serious business centre with a most favourable tax system and, as tax authorities around the world become increasingly aggressive, it is no surprise that many are taking advantage of all that Monaco has to offer!