Viager in Monaco: buying, selling and valuation
Are you looking to buy a viager property in Monaco, or sell your apartment while continuing to live there? A viager sale provides for a life annuity and, where agreed, an initial lump sum known as the bouquet, under the terms of the deed.
Understanding the property’s value, the seller’s retained rights and the payment structure is essential. MONACO PROPERTIES can help you assess the options for your Monaco property.
Occupied viager or vacant possession: what is the difference?
With a viager occupé, the seller retains a right defined in the deed and can continue living in the property while receiving an annuity. The buyer’s valuation takes that retained right into account.
With a viager libre, the seller retains no right to use the property. The buyer can take possession immediately to live there or let it, subject to the rules applicable to that property.
DUH, usufruct and bare ownership explained
The droit d’usage et d’habitation (DUH) is a personal right of use and habitation. It allows the seller to occupy the home as provided in the deed, but does not allow them to let it and receive rent. Where a single DUH is reserved, use and habitation are not two separate deductions to add together.
Usufruct is broader: its holder may live in the property or let it and receive rental income, subject to applicable rules. Bare ownership is ownership without that usufruct.
| Question | DUH | Usufruct |
|---|---|---|
| May the seller live in the property? | Yes, as set out in the deed | Yes |
| May the seller let it and receive rent? | No | Yes, subject to applicable rules |
| What does the buyer acquire? | Ownership subject to the DUH | Bare ownership |
A sale subject to a DUH is therefore legally distinct from a sale of bare ownership with retained usufruct. If the seller moves out, usufruct may allow them to let the home; a DUH does not. The deed should address any early release of the property.
How is a viager price calculated in Monaco?
- Estimate the vacant possession value, without the seller’s retained right.
- Deduct the value of the retained DUH or usufruct.
- Allocate the value of the rights sold between the bouquet and the capital converted into a life annuity.
Value of rights sold = vacant possession value − value of the retained right.
The DUH represents the benefit of remaining in the home. It is not money paid to the seller and is not added to the bouquet.
Educational example: a €2,000,000 property, a €200,000 bouquet and a net rental benefit of €60,000 per year. Factors 20, 15 and 10 are illustrative assumptions, neither life expectancies nor an official scale. Age alone does not determine the price.
Worked example: the “age 70” column
With an illustrative DUH of €900,000, the rights sold are worth €1,100,000: €2,000,000 − €900,000. After a €200,000 bouquet, €900,000 remains to be converted into an annuity. Using the hypothetical factor of 15, the simplified calculation is €900,000 ÷ 15 = €60,000 per year, equivalent to €5,000 per month, before indexation.
The actual total paid is unknown when the deed is signed because payments depend on the lifetime of the beneficiary or beneficiaries. A life annuity is not a loan repaid over a fixed term.
How are the DUH, usufruct and bare ownership valued?
1. Establish the apartment’s vacant value
Valuation considers comparable sales in Monaco, neighbourhood, building, floor area, floor level, views, condition, terrace, parking and services. An average price per square metre cannot replace an individual assessment.
2. Value the personal occupancy right
An economic approach values the seller’s net rental benefit over the period of occupation:
DUH value ≈ annual net rental benefit × appropriate actuarial factor.
The factor accounts for survival probabilities and discounts future benefits to their present value. Age, number of beneficiaries, duration of the rights, expenses and deed terms affect the result. Rights continuing until the last survivor’s death must be valued accordingly.
3. Value usufruct and bare ownership
Usufruct includes the ability to earn rent and may therefore be worth more than a comparable DUH. Its economic value reflects potential net rental income, probable duration and expenses.
Economic value of bare ownership = full ownership value − economic value of usufruct.
Each case needs its own assessment. An illustrative percentage or a foreign tax scale is no substitute for a valuation suited to the property and Monaco’s legal framework.
How are the bouquet and annuity agreed?
The bouquet is paid at completion. It is optional, and no single percentage suits every transaction. The annuity is calculated from the remaining capital, the selected factor and payment terms.
All else being equal, a larger bouquet means a smaller annuity. Payment frequency, indexation, survivor provisions and payment security should be established in the deed with the notary.
Who pays expenses and repairs in an occupied viager?
It would be incorrect to assume that the seller automatically pays every expense. Allocation depends on the retained right, applicable rules and deed terms. For usufruct, Monaco’s Civil Code distinguishes maintenance repairs from major repairs, with exceptions. Running costs, works and insurance should be addressed before signing.
For the relevant rights and repairs, see the Monaco Civil Code, including Articles 481, 490, 491 and 510–520 (in French).
Find a viager property for sale or request a valuation in Monaco
Looking for a viager property in Monaco? Tell us your preferred area, required size, bouquet budget, affordable annuity and whether you need immediate or deferred occupancy. We can help you search for a suitable property.
Considering selling your apartment in viager? MONACO PROPERTIES offers a personalised valuation and an assessment of your options: DUH or usufruct, bouquet and annuity.
Contact MONACO PROPERTIES to find a viager property in Monaco or request a free property valuation.
Tel.: +377 97 97 33 97
WhatsApp: +33 6 40 62 65 76
Email: info@mpmonaco.com
