- “Gazumping” is very rare in Monaco since there are laws / penalties to cover both the buyer and seller pulling out of accepted Offer
- There is no cooling off period under Monaco Law once an Offer is accepted.
- “Subject to finance” clauses in Offers have to include specific details and numbers to avoid them simply being used as an easy way out for buyers.
- Unless you speak fluent French, you are legally obliged to have (and pay) for a translator to attend your Sales transaction.
- Stamp duty when you purchase a property in Monaco is;
◦ 2.5% for a new build property.
◦ 4.5% for an existing property.
◦ 7.5% if you wish to purchase using an offshore structure.
- There are also 1.5% Notary fees on top when purchasing.
- All estate agents fees are set by the Monegasque Chamber of Real Estate and are the only element of a purchase that accrue VAT:
◦ 3%+VAT when buying.
◦ 5%+VAT when selling.
- Including a mortgage when buying will cost an extra 1% of the mortgage amount in registration fees (and another 1% to de-register if you ever resell).
- You only pay notary fees and stamp duty when buying a property – sellers pay neither.
- In Monaco, full sales transaction can happen very quickly (3 days is our record) although the typically timeframe is usually a few months, especially if bank finance is being included.
Despite the significant cost of transaction in Monaco, the good news is there are zero capital gains or other property taxes and the average property price increase across all property types for the past ten years is 52% according to the Monaco Statistics office (www.imsee.mc).
Icon Property are determined to bring more simplicity and transparency to the Monaco Real Estate market. We have a straight-talking in-house lawyer Margaux Hesse who helps our clients achieve the most efficient and cost effective transactions. (Margaux@icon-property.com)