Moving to Monaco - Viviani Champfleury Barco
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Moving to Monaco

Why move to Monaco:

With 68% of its population foreign-born and over 130 nationalities, Monaco is one of the most welcoming and diverse countries in the world. This attractiveness can be explained by a combination of 3 factors:

1. Safety

With a “very high” safety rating in the international benchmarking database Numbeo, Monaco is one of the safest places to live in the world. The safety of the residents is guaranteed by a large police force (1 policeman / 71 residents, more than four times the European Union average) and 24hour CCTV covering the whole territory with 600 cameras.

In addition, many of the buildings in Monaco benefit from internal CCTV systems and 24 hours concierge service.

2. Quality of life

Monaco benefits from a unique geographical position. Located on the sunny Mediterranean coast, with an average of 300 days of sunshine a year, the Principality enjoys long warm summers and mild winters. With one of the rare deep-water harbors of the French Riviera, its Yacht Club, designed by Sir Norman Foster, and its stunning Oceanographic Museum, commissioned by Prince Albert I in 1889, Monaco has a profound relationship with the Mediterranean. In summer, residents can enjoy the sea through the Larvotto beach or the renown Monte-Carlo Beach Club. In winter, they can also enjoy nice skiing destinations in the South Alps less than an hour and a half drive.

Monaco is located only 20 minutes away (7 minutes by helicopter) from the Nice International Airport, France’s largest airport outside Paris. With over 100 direct destinations, Nice airport is connected to the world.

Like any cosmopolitan place, Monaco offers plenty of world-class experiences for its locals and tourists in just two square kilometers. Restaurants are an essential part of Monaco’s lifestyle as families and friends regularly meet out for lunch or dinner. The range of choices is impressive, from the acclaimed 3 Michelin stars Louis XV which helped propel the career of Alain Ducasse, to a large number of local and authentic restaurants spread across the various districts. The numerous hotels offer a variety of options to grab a drink, from the iconic American Bar at the Hotel de Paris to the cozy Lobby Bar at the Metropole Hotel. The Sass Café or Jimmy’z have seen countless celebrities dancing all night long. The Opera, designed by Charles Garnier in 1879, and the Compagnie des Ballets de Monte-Carlo offer world-class performances to their audiences.

Monaco’s surroundings also provide extensive entertainment opportunities, from the 3 Michelin stars Mirazur restaurant in Menton, voted numerous times as the best restaurant in the world, to the stunning Maeght Foundation in Saint-Paul de Vence. The region also hosts numerous global events all year long such as the Monaco Formula 1 Grand Prix, the Monte-Carlo Tennis Masters, the Monaco Yacht Show or the Cannes Film Festival.

Health and Education are also set at a very high level in the Principality and adds to an exceptional standard of living. The Princess Grace Hospital has been awarded the highest rating by the French Health Authority. Both the public schools and the International School of Monaco, offering classes in English, have an impressive success rate for their respective diplomas.

3. Light tax regime

Monaco is widely known for the light tax regime of its residents. With no personal income or capital gain taxes, the tax regime of the Principality has been and remains very attractive.

 

However, this light tax regime hasn’t come at the expense of fiscal orthodoxy. Monaco is one of the rare countries in the world with no public debt. Thanks to its sovereign fund (Fonds de Réserve Constitutionnel), the Principality benefits from a strong financial independence.


Becoming a resident in Monaco

Viviani Champfleury Barco has extensive experience accompanying its clients through the administrative process of applying for a residency permit. Applicants must provide the following documents:

  • Proof of ownership or rental agreement of a property located in the Principality.
  • Sufficient financial resources (through the form of a remuneration, a salary or sufficient savings with a banking establishment in Monaco providing the necessary letter of reference).
  • Good character (proof of which should be supplied by providing a copy of criminal records information from the country or last two countries of residence for the five years before your arrival in Monaco).
  • Non-EEA citizens must also apply for a long-term visa for Monaco, issued by the French authorities.

Once the application is completed, an appointment with the Residents Section must be set. During this appointment, the documents submitted are checked and the file registered. The approval depends on the outcome of the investigation ran by the Monaco authorities.

Buying a property in Monaco

There is no restriction refraining foreigners from buying a property in Monaco.

An acquisition starts with a written purchase offer with the details and description of the desired property, the price, the terms and timing of the transaction. The offer must be backed by a down payment (typically 10% of the purchase price). Once accepted, the offer becomes a firm commitment for both parties and the down payment should be remitted in the account of a public notary who will draft the bill of sale. If the buyer was to withdraw from the transaction, the down payment would be granted to the seller.

The applicable fees for the purchase of a property are:

  • Registration and notary fees: usually 6% of the amount of the transaction price but can vary depending on the ownership structure of the buyer (includes the registration, stamps and legal fees).
  • Broker fees: 3% + VAT of transaction price.

Monaco rental laws

If the majority of the apartments in the Principality is free of law (s), properties built before September 1, 1947 are, with rare exceptions, subject to one of the following two laws:

 

Law 887 Law 1235 amended by the law 1291 & 1377
The tenant must be
  • Parents or children, or their spouse, of the owner or his spouse
  • Monegasque nationals
  • People residing in Monaco for more than 5 years and been in a job in Monaco for more than 6 months
  • People working in Monaco for more than 5
  • Monegasque nationals
  • People born to of Monegasques parent; the spouses, widowers or widows of Monegasques; people divorced of a Monegasques, fathers or mothers of children born from this union
  • People born in Monaco, who have lived there since birth, provided that one of their parents also resided in Monaco at the time
  • People who have lived in Monaco for at least 40 years without interruption
Rent Free + usual indexation clause Supervised by the Rent Arbitration Commission
Lease term 6 years, cancellable annually according to the sole will of the tenant. The owner has a right of repossession for himself and his family 6 years, cancellable within 3 months by the tenant. The owner has a right of repossession for himself and his family
Mandatory rental No but declaration of vacancy is needed Yes

 

These laws generally generate a discount on the purchase price per sam but negatively impact the rental yield.

 

Lien : Légimonaco