Off-market real estate properties in Monaco: what they are and how to get access

Monaco continues to captivate global investors and high-net-worth individuals with its unparalleled luxury, safety, and a tax-friendly environment; as a result, the real estate market in Monaco is extremely competitive and expensive.

Nevertheless, there are still some opportunities thanks to what are known as off-market properties.

In this article, we will explain what are these properties in the Principality and why they represent an exceptional opportunity for discreet buyers.

NEW REPORT

The report “The definitive guide to living in Monaco” is now available, with detailed information on Monaco’s tax framework, residence and society.

Click here to download it for free.

The Monaco real estate landscape

Monaco is one of the smallest countries in the world, occupying only 2 km² and home to fewer than 40,000 inhabitants, yet it boasts one of the most expensive real estate markets globally.

This exclusivity is driven by a high demand from millionaires seeking to relocate their tax residence for low or no taxes, secure living conditions, and a stable social and economic environment.

Real estate prices in Monaco have surged dramatically, with the average price per square meter surpassing €55,000 and reaching nearly €60,000 in the coveted Monte Carlo district, while Jardin Exotique remains the most affordable at around €35,400 per square meter.

According to government statistics from 2022, several districts experienced a year-over-year increase in transaction volumes, with La Condamine leading the growth due to its attractive quality/price offer, even though Monte Carlo and La Rousse continue to dominate market demand.

New constructions

The new construction market in Monaco is very limited, representing only about 5% of total sales in 2021, and many of these projects are sold “off-market” because of their exclusivity and the country’s spatial constraints.

Meanwhile, the rental market remains among the most expensive worldwide, with average rents reaching approximately €91.08 per square meter per month; studios or one-person apartments rent for €3,000–€6,000 monthly, second-hand family housing for €5,000–€15,000, new family housing for €15,000–€40,000, and villas or luxury properties even commanding rents up to €200,000 per month.

To scarcity of land is so severe that it has led to projects like Le Portier (aka “Mareterra”), that aim to add an extra 15 acres to the Principality by 2026, easing spatial constraints slightly.

What are off-market properties?

Off-market properties are those that are not publicly listed on conventional real estate platforms. There are different reasons why the seller, whether a real estate professional or the owner, may choose not to make public his interest in selling a property:

For privacy reasons
To avoid attracting other real estate agencies
For the certainty that the property will be easily sold anyway
To priorize trusted and qualified potential buyers

For one or more of the above reasons, there are constantly properties that are only marketed through trusted networks and top real estate agencies in the Principality, ensuring that only serious and qualified buyers gain access.

Therefore, it is a great advantage for a buyer to have the necessary network of contacts to access such off-market properties: this guarantees access to a larger catalogue and a better quality-price ratio.

At MonacoAdvisers we work with a vast network of real estate agents with continuous access to multiple off-market listings, so if you are looking to purchase a home in Monaco, do not hesitate to contact us with your needs.

Can a foreigner buy a property in Monaco?

Yes, foreigners can purchase property in Monaco, although the process is notably strict: international buyers must provide extensive documentation to verify the origin of funds and comply with anti–money laundering rules.

Although the requirements can be stringent, experienced local agents and legal experts guide buyers through each step of the process. Collaborating with these professionals is crucial to ensure a successful transaction in a market that demands both discretion and adherence to regulatory standards.

Real estate taxes and transaction costs

Understanding the costs associated with purchasing property in Monaco is essential for any investor. The taxation framework in the Principality is relatively complex, with various fees and duties that must be factored into the overall investment.

For new properties, Value Added Tax (VAT) is typically levied at 20%, similar to the French system, while older properties may be subject to a transfer duty of 4.5% for private individuals and 6.5% for other buyers. Notary fees usually range between 1% and 3% of the purchase price, reflecting the importance of legal oversight in property transactions.

In addition, real estate agent fees are customarily around 5% (plus VAT) for the seller and approximately 3% (plus VAT) for the buyer. Buyers should also anticipate additional due diligence costs, including legal fees and comprehensive KYC documentation required under strict anti–money laundering regulations.

Becoming a resident and its advantages

As you probably already know, the Principality, despite having disappeared from practically all international lists of tax havens, maintains a very advantageous tax system. A Monegasque tax resident will not have to pay income tax, nor taxes on dividends, capital gains or interest. In the case of a donation or inheritance to a very close relative, he will not have to pay taxes either.

But it is worth clarifying that a non-resident who acquires a home in Monaco does not automatically become an administrative resident, much less a Monegasque tax resident.

However, there is good news: if you have the purchasing power to own a home in Monaco, you probably meet the requirements to obtain residency as well.

Without wanting to stray from the subject of this guide, in general terms you should know that the usual procedure to obtain administrative residency involves proving your financial sufficiency to a bank through a substantial (at least €500k) deposit or investment.

The bank’s support and a few simple requirements (no criminal record, a few formalities, etc.) are all you need to obtain a residence permit. This administrative permit, in turn, opens the door to tax residency (we are not going to go into details here either, for more information read the guide on tax residency in Monaco).

NEW REPORT

The report “The definitive guide to living in Monaco” is now available, with detailed information on Monaco’s tax framework, residence and society.

Click here to download it for free.

How to buy an off-market property in Monaco

Purchasing an off-market property in Monaco requires a tailored approach that differs from conventional real estate transactions. Buyers must engage with reputable agencies that have exclusive access to off-market listings and understand the nuances of private transactions.

The process begins with a detailed discussion of your needs, including budget, location, and specific property features. Once your criteria are defined, agents leverage their extensive networks to present you with a curated selection of off-market opportunities that match your requirements.

Private viewings are arranged to ensure that only serious buyers are exposed to these exclusive properties. Your agent will negotiate on your behalf, guiding you through the offer and due diligence processes while ensuring that all legal and financial documents are in order.

Thinking of buying a property in Monaco?

Monaco’s real estate market continues to thrive despite its tiny size and limited space. The exclusive nature of off-market properties, combined with the principality’s tax advantages and high standard of living, makes it an attractive destination for both residents and investors.

If you have been considering a move to Monaco or looking to expand your property portfolio, now is the time to explore off-market opportunities: our team of experienced agents is ready to guide you through the process and help you access the very best off-market properties in the Principality.

Please, feel free to contact us today for a confidential consultation by sending an email to [email protected] or through the form.

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