MONACO PROPERTY – TAX RULES

Income Tax

Income tax and Capital Gains tax are not applied to residents of Monaco unless they are a French national.  There are some exceptions to the law for French nationals so if this applies to you do double check.

Social Insurance Contributions

Social insurance contributions payable by employers and employees is high. The employer's contribution is between 28%-40% of gross salary including benefits and the employee pays a further 10%-14%.

Stamp Duty

It is mandatory to register transfers of Monaco property as stamp duty, capital transfer tax and registration fees are all payable.

Tax is also payable on the following property transactions:

·       7.5% of the registered value of real estate sold;

·       3% of the value of a registered mortgage;

·       1% on the registered value of a short term lease which value is determined according to set formulas;

·       6.5% on the registered value of a long-term lease which value is determined according to set formulas.

·       0.65% on mortgage subscription fee

Inheritance and Gift Taxes

Inheritance and gift taxes are only payable by residents on assets situated in Monaco unless left to charitable institutions.

The rates payable on transfers of Monaco property and other gifts is as follows:

·       Direct line spouses (wife, parents and children), nil;

·       Brothers and Sisters, 8%;

·       Uncles, Aunts, Nieces & Nephews, 10%;

·       Other relatives, 13%;

·       Unrelated persons, 16%.

VAT

Two rates of VAT apply; the normal rate of 19.6% and a reduced rate of 5.5%.  The standard rate of VAT is payable on sales of Monaco property whose construction was completed less than 5 years ago. Real estate which has been constructed more than 5 years ago and which has already had one purchaser who paid market value does not attract VAT.

Want a Monaco Property? Call HomeHunts

Click here to view our full range properties in Monaco