The city-state of Monaco on the French Riviera can be a very exciting and rewarding place to live. Bordered by France on three sides and the Mediterranean Sea on the other side, Monaco imposes no income tax and, as a result, has attracted many wealthy individuals. The state is particularly well-known for its gambling industry, the annual Monaco Grand Prix and fascinating history, though purchasing a property in the country can require looking out for various pitfalls.
Why choose to live in Monaco?
The Principality of Monaco, to use its full name, has seen its economy grow significantly since 2010. For example, the country’s GDP grew by 9.6% and 7.2% in, respectively, 2013 and 2014. Furthermore, Monaco is, politically, both neutral and very stable – and also happens to be amazingly safe. Furthermore, it has a pleasant climate and an absence of capital gains or property taxes.
It is little wonder, then, that Monaco is popular as a place in which to live; however, you need to be cautious if you want to join its residents, as demand for Monaco housing far exceeds supply.
There’s a big financial expense to Monaco residency
While the last decade has seen Monaco’s population increase by over 20%, a mere 2% of new build property stock was made during that time. Furthermore, 61% of Monaco apartments are only available for renting, leaving the remaining 39% as open market.
Naturally, then, Monaco property can be very expensive to buy – though various other factors can also influence the property prices. Those factors include the locations, parking availability, facilities, finish quality, and views that you can enjoy with different apartments. Another factor is an apartment’s size – which, in Europe, is measured by the number of bedrooms, not overall rooms.
This is pointed out by Hello Monaco, which notes that studios lacking a sea view are priced from €1.5 million. A similar property can be €3.9 million in price if it does include a sea view, while – depending on the size and view – a four- or five-bedroom apartment can sell for between €13.3 and €67 million.
Steps for taking to close in on a Monaco property purchase
It is very rare for a Monaco property to be sold privately; the country’s real estate market is largely managed by agencies. To start your search for the right accommodation, you can get in touch with Monaco Relocation Services, a company which delivers a range of services for people seeking to relocate to Monaco. Working alongside esteemed licensed Monaco agencies, the company can help you find a property that effectively meets your requirements.
Monaco Relocation Services can also assist in organising viewings and the provision of legal advice. When you make the financial outlay for a property purchase, there will be a 3% agency commission to pay on top of that, along with notary fees and other tax of 6%. Therefore, you will pay 9% more for a property than you would have done had those extra charges not applied.