Every Monaco transaction has two numbers. The first is the price agreed between buyer and seller, recorded in the notarial deed and reported in official statistics. The second is what the buyer actually transfers on completion day. The difference between those two figures, in a market where apartments routinely trade above €30,000 per square metre, is substantial enough to change the financial logic of an acquisition entirely.
For a resale apartment purchased by an individual buyer, total acquisition costs typically land at between 9.5% and 11% of the purchase price when all mandatory fees, regulated commissions, and professional advisory charges are added together. On a €5 million property, that is an additional outlay of €475,000 to €550,000 before a single piece of furniture crosses the threshold.
Understanding each component, its legal basis, and the timing of payment is not optional due diligence. It is the foundation of any credible financial plan for a Monaco purchase. Buyers considering properties for sale in Monaco should build these costs into their initial budget, not discover them at the notary’s office.
In Monaco, the notary collects two distinct charges at the signing of the authentic deed of sale: their own professional fees and the registration duties owed to the Principality’s tax authority, the Direction des Services Fiscaux. These are invoiced together but serve different purposes.
When a natural person or a société civile particulière (SCP) registered in Monaco acquires an existing resale property, the combined charge amounts to 6.25% of the purchase price. This breaks down as 4.75% in registration duties (droits d’enregistrement) and 1.5% in notarial fees. These figures are documented by multiple Monaco real estate legal firms including Savills Monaco and Segond Immobilier and reflect rates set under Monegasque law updated by Law No. 1.548 of October 2023.
The practical consequence of that law is significant: since October 2023, real estate transactions subject to VAT no longer benefit from full exemption from registration duties. Only a 50% exemption now applies to such transactions. Buyers using legal structures should verify how this change affects their specific purchase before proceeding.
For new or off-plan properties (vente en l’état futur d’achèvement, or VEFA), the tax treatment shifts. The sale price is subject to 20% VAT, which is typically embedded in the price rather than added on top. The buyer owes only 2.5% in combined notarial and registration fees: 1.5% notary fees and 1% registration rights. This more favourable regime is designed to encourage investment in new construction and represents a meaningful reduction relative to resale costs.
The acquisition structure has a direct and significant impact on the registration duty rate. A foreign or offshore company acquiring Monaco real estate pays 10% in registration duties plus 1.5% notary fees, bringing the total to 11.5%. A foreign company that meets certain disclosure conditions regarding its beneficial ownership pays a reduced rate of 7.5%, giving a combined total of 9%. These differentials make entity selection a critical financial decision, not a purely administrative one.
Acquisition of shares in a Monaco civil company that holds real estate incurs 4.75% registration duty calculated on the value of the underlying property, plus notary or lawyer fees separately.
These costs are due and payable at the signing of the authentic deed of sale. Before that moment, the buyer will have paid a 10% deposit into the notary’s escrow account at the time the preliminary agreement or formal offer is accepted. This deposit is not an additional charge; it is credited against the final purchase price. It does, however, represent a significant cash commitment at an early stage of the transaction.
The notary’s role in Monaco extends well beyond paperwork. To understand the full scope of what the notary handles on behalf of buyer and seller, including land registry searches, anti-money laundering checks, and deed registration, read our dedicated guide to the role of notaries in Monaco.
Real estate agency fees in Monaco are regulated by the Chambre Immobilière de Monaco and are not freely negotiable in the same way as in other markets. The buyer-side commission is set at 3% of the sale price plus 20% VAT, giving an all-in rate of 3.6%. The seller-side commission is typically 5% plus 20% VAT (6% total), though seller mandates can vary.
On a €5 million resale apartment, the buyer’s regulated commission alone amounts to €180,000. On a €10 million purchase, it reaches €360,000. These are not negotiable deductions; they are the standard for all accredited agencies in the Principality.
It is worth noting that in some off-market or developer-direct transactions, agency fees may be structured differently, or the commission may be embedded within the listed price. In such cases, buyers should always request written confirmation of who bears the agency fee and at what rate before making any offer. Clarity on this point before signing a preliminary agreement prevents disputes at the deed stage.
While the notary handles the legal mechanics of the transfer, an independent Monegasque lawyer provides a different kind of protection. Their role is due diligence on behalf of the buyer: verifying that no mortgages, debts, or legal encumbrances are registered against the property; reviewing the co-ownership regulations (règlement de copropriété); and advising on structuring implications if the buyer is acquiring through a corporate entity.
Monegasque legal fees for property acquisitions are not set by a tariff and depend on the complexity of the transaction. For straightforward residential purchases, buyers should budget between €5,000 and €15,000 for independent legal counsel. Complex structures, cross-border tax advice, or properties with regulated tenancy status will push this figure higher.
A tax advisor may also be engaged separately, particularly for buyers who are not yet Monaco residents or who are restructuring their global holdings around the acquisition. The cost of this advisory work varies considerably based on the adviser’s scope and the buyer’s existing structure.
Beyond the core registration duties absorbed within the 6.25% figure, buyers should be aware of ancillary administrative costs. The transcription of the deed of sale in the Monaco land registry (Division des Hypothèques) is included within the notarial fee calculation. However, additional disbursements for searches, land registry extracts, and document processing are typically billed by the notary as out-of-pocket expenses on top of their percentage fee.
These disbursements are generally modest in the context of the overall transaction, but they should be requested as an itemised estimate from the notary before completion. Experienced buyers ask for a full funds-required statement at least ten days before the deed signing to avoid last-minute funding surprises.
Monaco property transactions are predominantly cash purchases, particularly at the upper end of the market. Nonetheless, some buyers do finance part of the acquisition through Monaco-based banks or international lenders with Monegasque operations.
If a mortgage is used, a specific registration fee applies: 0.92% of the mortgage amount is payable as a registration duty on the mortgage assignment (inscription hypothécaire). This is documented by Barnes Valeri Agency among other Monaco real estate firms. Bank arrangement fees, appraisal costs (frais d’expertise), and legal fees for drafting the mortgage deed add to this base charge. Foreign buyers using cross-border financing should also factor in potential currency hedging costs and additional compliance documentation requirements imposed by Monaco-based lenders.
Once the deed is signed and the keys are handed over, a cluster of practical costs follows. Connecting utilities requires individual contracts with the relevant Monaco providers. New residents will need to establish accounts for electricity (SMEG), telecommunications, and potentially gas. While connection fees are relatively modest in absolute terms, they require advance planning to ensure services are active on occupation.
Buildings with concierge services typically require a key deposit or access deposit at the point of move-in. In premium buildings with 24-hour security and managed entry systems, these deposits can range from a few hundred euros to several thousand. Buyers of furnished or part-furnished properties should also budget for any adjustment to contents insurance, which is mandatory in Monaco.
The charges de copropriété, often referred to as service charges or syndic fees, are the ongoing annual cost of owning within a co-owned building. They cover the maintenance of common areas, building insurance, concierge services, elevator maintenance, security systems, and communal utilities. In Monaco’s luxury residential stock, these charges also commonly include amenities such as pools, gyms, and landscaped gardens.
Based on published industry ranges, annual service charges in Monaco’s luxury residential market typically run from €10,000 to €30,000 or more per year, depending on the building, the unit size, and the level of services provided. Prestige buildings with doormen, valet parking, and private gardens sit at the top of this range. Simpler buildings with basic concierge and standard maintenance sit closer to the floor.
Before purchasing, buyers should request the last three years of charges de copropriété statements and the minutes of recent co-ownership general assembly meetings (assemblées générales). These documents reveal not only the current annual charge but any planned major works or special assessments that may significantly increase the annual cost of ownership.
Monaco levies no annual property tax. This is one of the Principality’s most cited fiscal advantages, and it is genuine. Owners of residential property in Monaco pay no equivalent of France’s taxe foncière or the United Kingdom’s council tax, regardless of whether the property is their primary residence or a secondary holding.
What this means in practice is that the recurring ownership cost consists primarily of service charges and building insurance, rather than a government levy on property value. For high-value assets, this distinction is substantial: a comparable property in central London or Paris would attract annual property-related taxes running to tens of thousands of euros per year. Monaco’s absence of such levies is a durable structural advantage for long-term holders.
That said, buyers should not conflate the absence of property tax with the absence of ongoing fiscal obligations. Monaco residents who earn income from letting their property, or who hold property through certain corporate structures, will have specific reporting obligations. The tax framework for Monaco residency and its interaction with property ownership is a separate subject that warrants dedicated professional advice. Those weighing the broader financial implications of owning versus renting in Monaco can explore the question in our comparative guide to living in Monaco: buying versus renting.
In addition to recurring service charges, buyers in co-owned buildings may be subject to contributions to the building’s capital reserve fund (fonds de réserve). This fund covers major capital expenditure: facade restoration, roof replacement, lift modernisation, or the installation of new building systems. The fund level and planned contributions are decided by the syndic and approved at the annual general assembly.
Special assessments (appels de fonds exceptionnels) can arise when a building undertakes major works not fully covered by the existing reserve. In an older Monaco building that has recently changed hands in a buoyant market, there is a non-trivial risk that deferred maintenance will be addressed soon after acquisition. A buyer who has not reviewed the building’s maintenance schedule may inherit an unexpected large-scale cost within the first year of ownership.
The following worked example uses published, verified rates to illustrate the cost structure of a typical acquisition by an individual buyer. It is illustrative, not exhaustive, and does not constitute financial advice.
Scenario: Individual buyer (natural person), resale apartment, price €5,000,000.
The effective uplift above the agreed price in this scenario is approximately 10.1%. For a buyer using a foreign company structure, the registration duty alone rises to 10% or more, pushing total acquisition costs above 16% of the purchase price.
On an ongoing basis, the same buyer should expect annual service charges of €15,000 to €25,000 depending on the building, with no annual property tax to add on top.
Monaco’s cost structure is well-defined but unforgiving of late discovery. The difference between a buyer who models total acquisition costs at the outset and one who focuses exclusively on the headline price is a planning gap of several hundred thousand euros. Given the absence of a cooling-off period in Monegasque transactions after a formal written offer is accepted, the window for financial recalibration is narrow.
If you are at the financial planning stage for a Monaco property purchase and would like a clear conversation about how these costs apply to your specific situation and structure, contact the Baldo Realty team. We work on a discreet, client-first basis and can help you think through the full acquisition picture before committing to a search.
The information in this article is provided for general informational purposes. It does not constitute legal, tax, or financial advice. Rates and regulations may change. Readers should seek independent professional advice before making any property acquisition decisions.
