While you may assume that buying a home in Monaco automatically grants you residency, you’ll be surprised to find that it doesn’t. Having a Monaco apartment and holding a residence card are two separate transactions, and one doesn’t necessarily lead to the other.
After committing to buying property in Monaco, many buyers are surprised when they’re asked for a bank reference, and are required to take the accommodation suitability test, or have to adhere to an appointment timeline.
In this guide, we’ll go over requirements for gaining Monaco residency, as well as resident card categories, timelines, and tax distinctions.
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Does Buying Property in Monaco Give You Residency?
No, buying a property in Monaco does not automatically give you Monaco residency. However, it does satisfy one of the requirements for gaining residency.
There are distinct differences between owning Monaco property, holding a Monaco residence card, and being a tax resident. It’s common to conflate these, but they are, in fact, separate. Ownership is a transaction with its own legal steps, notaire involvement and costs, all covered separately in our guide to the buying process in Monaco.
What Are the Residency Requirements in Monaco?
It can take between 2 and 5 months to secure residency in Monaco. In order to become a Monaco resident, the applicant must satisfy the following conditions:
Proof of Accommodation
Showing proof of Monaco accommodation can include:
- Owning a property in Monaco
- Being a tenant
- Living with a close family member
If you are staying with another person, you’ll need a certificate of free accommodation that’s signed by the person you’re staying with, which can include a close relative or your spouse or partner. You’ll also need the tenancy agreement if the individual you’re staying with rents the home, or a property deed if they own the home.
If you’re purchasing property in Monaco and your proof of accommodation is ownership, the property must be habitable for the appropriate number of occupants.
Background and Financial Checks
It’s common to be asked to provide a police record certificate from your previous country or countries of residence. Additionally, you’ll need a reference letter from a Monaco bank. This typically requires that you make a deposit into the account.
Health Coverage
While proof of health coverage isn’t a required document when applying for Monaco residency, it’s still an important consideration for anyone moving to Monaco, especially if employment isn’t secured yet.
If you work in Monaco, you’ll likely become part of the health system via your employer. Sometimes, employees purchase private insurance in addition to their basic coverage for expenses that aren’t reimbursed by the Caisses Sociales de Monaco (CCSS).
If you’re moving to Monaco and don’t have employment, you won’t qualify for CCSS, as it’s tied to employment. That means you’ll need to find alternative health coverage, such as coverage through a spouse or private health insurance.
Monaco Residence Card Categories Explained
There are four types of residence permits for foreigners in Monaco:
- Temporaire: The temporary permit is the one most commonly given to first-time residents. You don’t need to have been a resident for a minimum period of time to qualify for this type of residency, and it’s valid for one year.
- Ordinaire: The ordinary permit is for those who have lived in Monaco for three years, and it’s valid for three years as well.
- Privilégié: The privilege permit can be issued once you’ve lived in Monaco for 10 years, and it’s valid for 10 years.
- Conjoint de Monégasque: This permit can be issued to the spouse of a Monegasque national if they’ve lived in Monaco for a minimum of one year. The permit is valid for 5 years.
These residence card categories reflect the length of your connection to Monaco, as well as how long you plan to stay in the Principality.
How Long Does the Monaco Residency Process Take?
The Monaco residency process requires a number of steps:
- Securing a property
- Setting up a bank account, making a deposit and getting a reference letter
- Submitting the application
- Making an appointment with the proper office
- Having the card issued
If you are a national of a European Economic Area (EEA), you don’t need to supply documents for a visa or long-stay permit in Monaco, as you have the right to free movement.
Non-EEA nationals, which include nationals of the United Kingdom and Northern Ireland, are not part of the EEA and must provide documentation for a visa or long-term permit. Note that in order to get a residence permit, you must already have a visa.
Non-EEA nationals who have been in France for a minimum of one year can apply for a residency transfer with the French Embassy in Monaco. For everyone else, the visa must be applied for via the French Consulate that’s closest to your place of residence. The exception is for foreigners who already have accommodation in Monaco, in which case they can appeal to the Ministry of the Interior to ask for permission to apply to the French Embassy in Monaco.
Residency and Tax: What Property Buyers Should Understand
Monaco does not impose personal income tax on residents, other than an exception for French nationals under the Franco-Monegasque Tax Convention of 1963.
It’s important to understand that a Monaco residency card does not equal tax residency in the buyer’s home country. Physical presence requirements and your home country’s rules will still apply.
Since the specifics surrounding Monaco residency and taxation are complex, it’s best to speak with a qualified tax adviser.
What Kind of Property Do Residency Applicants Buy?
Monaco measures less than 1 square mile, or just over 2 square kilometres. With such limited space, every address has influence on the market. Additionally, Monaco is an apartment-dominated market, and typical entry points vary by bedroom count. For example:
- A one-bedroom apartment in Monaco may start at €1,600,000, though most are closer to €2,750,000 and can go up to €5,200,000.
- There’s some price overlap with two-bedroom apartments, as some range from €3,850,000 to €5,900,000. However, depending on the property’s specifics, two-bedroom Monaco apartments can be priced upwards of €7,700,000 and as much as €20,600,000, which overlaps with the cost of three- and four-bedroom apartments.
- Three-bedroom apartments in Monaco have a broad price range between approximately €6,400,000 and €20,600,000.
- For a four-bedroom apartment, while there are few at the low end around €5,500,000, most will be between €16,500,000 and €33,000,000.
Those brackets shift with condition, floor level and view, so the apartments available in Monaco at any given moment give a more accurate picture than a range can.
Despite its petite size, Monaco has distinct differences between neighbourhoods, and different buyers will be interested in different areas.
For buyers after capital preservation, long-term value, and prestige, Carré d’Or and Larvotto are the best areas to focus on. Families will be drawn to Fontvieille, which offers modern amenities in a peaceful setting. La Condamine, which offers easy access to major events, is ideal for buyers who want to maximise rental income. If you’re after the best value without sacrificing a beautiful setting and panoramic views, consider Jardin Exotique or Moneghetti.
Monaco has limited stock of available properties, which makes off-market access especially important. By working with a buyer’s agent, you’ll be able to consider homes in the public market as well as those that are hidden from most buyers.
Common Mistakes Buyers Make When Pursuing Monaco Residency
In addition to owning property in Monaco, buyers must consider the administrative, financial and practical requirements of gaining residency in Monaco. Avoid these common mistakes to make your property purchase and residency application go smoothly.
Assuming the Purchase Triggers Residency
Buying property in Monaco does not grant residency. To become a resident, you have to complete the application process and show that, in addition to accommodations, you also have the financial resources needed to reside in Monaco.
Underestimating the Bank’s Onboarding Process
Opening a bank account in Monaco is an important part of the residency process, but bank onboarding comes with more steps than you might expect. For example, various types of documentation are typically needed to verify the buyer’s identity, prove their source of funds, and assess financial and wealth circumstances.
Buying a Property That’s Too Small for the Household
With Monaco being so small and available property being scarce, the size of the home you buy is a major consideration, as it can be difficult to find the right apartment for your needs. Families are especially impacted by this, as smaller homes are better suited to investment purchases or holiday escapes rather than housing multiple year-round occupants.
Treating the Resident Card as a Tax Outcome
While residency and taxes are related, they’re still distinct considerations. Gaining legal residency in Monaco doesn’t automatically guarantee that the buyer will have a certain tax position.
Home Hunts Supports Buyers Relocating to Monaco
At Home Hunts, we represent buyers only, and we can access the private market, giving each client a broader choice of homes to consider. We also introduce clients to trusted banks, notaires and tax specialists who will provide help and services throughout the process.
Instead of paying for our services directly, our buyer’s agent fee comes from the selling agent’s commission; our services don’t add any direct cost to the buyer.
Browse current Monaco listings or contact Home Hunts to discuss relocating to the Principality and finding a property that supports your application.
