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PROPERTIES TRADER IN MONACO
The property trader is a trader who carries out real estate transactions, he acquires property to be renovated at discounted prices, carries out improvement work and then resells it and thus makes a profit. He thus benefits from the legal status of trader, and must therefore be registered in the Trade and Companies Register, keep his accounts and draw up annual accounts. To exercise this profession, no diploma is required, just the creation of the necessary legal structure.
This is not a regulated activity in Monaco but it is subject to a separate tax regime, in fact the property trader enjoys the privilege of being able to buy a property by paying only 1.5% instead of 6% notary fees, but is obliged to resell the flat within 4 years. Once this period has elapsed and if he does not obtain any additional time, he will have to pay the 4.5% of notary fees saved at the time of purchase.
There are currently around 300 property dealers active in the Principality of Monaco.
FLATS UNDER LAW 887
In the case of the purchase of a flat under Law 887, the flat may only be rented with a lease of at least six years, which may only be terminated by the tenant. In addition, the tenant will have to fulfil one of the following criteria:A tenant of Monegasque nationality A tenant domiciled in Monaco for more than five years and who has been working there for more than six months. A tenant who has been working for more than five years.
The amount of the rent is not regulated and may be freely defined in the lease between the owner and the tenant.
Flats for residential use built before 1 September 1947 have rents paid by the housing authorities in Monaco. Furthermore, these flats may only be rented to tenants meeting one of the following criteria:A tenant of Monegasque nationality A tenant domiciled in Monaco for more than forty years without interruption A tenant who has been working for more than five years A tenant born of a Monegasque parent A joint tenant, widow or widower of a Monegasque man A tenant divorced from a Monegasque and having had at least one child born of this union A tenant born in Monaco and who has lived there since birth
Doing business in Monaco offers many advantages. In addition to the dynamism of the Monegasque economy, being based in the Principality enables you to reach one of the most international and wealthy clienteles in the world. Anyone wishing to carry out a commercial, craft, industrial or liberal activity in the Principality of Monaco must be authorised to do so.
Buying or selling a property in Monaco is very easy. There are no restrictions for foreigners. The transaction can be concluded quickly and our team of real estate agents is at your disposal to assist you in all stages of your project to buy, sell or rent in Monaco and on the French Riviera.
Most of the investors in Monaco are looking to achieve yield on their investments in purchasing and reselling properties at a higher price in a time lapse of 1 to 4 years. But what about long term investors willing to build up an estate of properties that will provide them with regular incomes over a long period of time. Where should they invest and in which type of properties? The following table made from the current sale and rent prices of about 200 properties in Monaco shows that investments in Studios offer for most of the districts in Monaco, the highest yields. In the same way, the less popular districts such as the Condamine and Monaco Ville offer on average higher yields than the most popular ones such as the Carré d’or and Monte Carlo.