A foreigner resident in Monaco can buy a property in the Principality. The fact there is no nationality criteria encourages many foreign nationals to settle in this country. Many are attracted by its tax regime. Residence permit holders are exempt from income tax. However, this exemption does not apply to French residents who are covered by the Franco-Monegasque tax treaty.
A real estate market open to foreign nationals
The Principality does not impose any nationality restrictions on the purchase of property. Foreign resident status in Monaco is not a barrier to property investment. Foreign nationals have the same rights as Monegasques when it comes to buying property.
Establishing your principal residence in Monaco offers undeniable advantages. The Principality has an international reputation for its advantageous tax regime and exceptional quality of life. This is why many foreigners want to know how to become a property owner in Monaco.
To invest in Monaco, international buyers require the services of a local estate agent and a notary. Our estate agents have in-depth knowledge of the dynamics of prices on the Monegasque market. Their financial and legal expertise is essential in unearthing exceptional properties for sale at the right price in the heart of the Principality.
Compared with France, the Monegasque market offers added opportunities. Buying an apartment or villa in Monaco opens the door to obtaining a residence permit. Issued by the Monegasque authorities, this permit entitles the holder to numerous tax benefits.
Buying a property to obtain a Monegasque residence permit
Owning property in Monaco is one of the requirements for obtaining a residence permit. This residence permit is available to all foreign nationals, including French nationals. It is essential if you wish to live in the Principality for more than 3 months a year.
To obtain foreign resident status in Monaco, the following conditions must be met:
- Provide proof of good character by supplying an extract from the criminal record or equivalent.
- Guarantee sufficient income from salary, assets or proof of support from a relative.
- Have a home in Monaco, whether you rent an apartment, own your own home or are staying with a relative.
Do you meet the residence conditions? Would you like to know how to become a resident in Monaco? Under Monegasque law, nationals of a European Economic Area country simply need to submit an application to the relevant authorities for residency.
Nationals of other countries must provide a long-term visa. The French consulate closest to your last place of residence has jurisdiction in this matter. For foreign nationals who have lived in France for more than a year, Monegasque law only requires a transfer of residence.
The benefits of having a residence permit in Monaco
Monaco’s tax system is one of the many advantages of living in Monaco. The provisions relating to taxation apply to all residents, including foreign residents. In fact, a foreign resident in Monaco enjoys the same advantages as a resident of Monegasque nationality.
Under Monegasque law, residents are exempt from direct taxation. This means that they do not pay income tax or wealth tax. The income of residents with a residence permit is not subject to withholding tax either.
However, this exemption does not apply to French residents who are subject to the provisions of the 1963 Franco-Monegasque tax treaty. Under this law, residents of French nationality remain liable for income tax in France.
To find out more about the tax treaty between France and the Principality, read Taxation in Monaco: the Guide. Our Coletti Real Estate agency can also help you with your real estate plans. Contact us and take advantage of our financial and legal expertise to establish your residence in Monaco and become a fully-fledged Monegasque resident.
