Monaco Property Tax Guide: Transfer Tax ~5-7%, Taxe Foncière 2026
Monaco's property tax system features significant transfer costs (registration fees of approximately 5-7% on purchases) and an annual taxe foncière on land value. There is no wealth tax on real estate holdings. Property values in Monaco are among the highest in the world. Here is how property tax works in 2026.
Property taxation in Monaco is governed by Monegasque law and the Franco-Monegasque customs union. The Direction des Services Fiscaux (DSF) administers property-related taxes. Monaco's property market is one of the most expensive globally, with average prices exceeding €50,000 per square meter for prime locations. The transfer tax (registration fees) is a significant cost for buyers, but there is no annual wealth tax on property holdings and no tax on deemed rental value. Capital gains on property sales →
Real-world example: A buyer purchases an apartment in Monaco valued at €5,000,000. Registration fees at ~5.5% = €275,000. Annual taxe foncière: approximately €2,000-5,000 depending on property characteristics. If sold after 5 years at €6,000,000, CGT for individuals = €0 (no CGT in Monaco). Compare to France: registration fees ~7-8% (€350,000-400,000), annual taxe foncière similar, but IFI wealth tax at up to 1.5% on total real estate above €1.3M, and CGT at 36.2% on gains. Rental income taxation →
Property Transfer Tax (Registration Fees)
- Standard rate: Approximately 5-7% of the purchase price, including notary fees, registration duties, and mortgage registration if applicable
- New properties: Reduced rates may apply for off-plan purchases (VEFA — Vente en l'État Futur d'Achèvement)
- First-time buyers: No specific first-time buyer exemption in Monaco (unlike some French schemes)
- Components: The fee includes notary fees (~1-2%), registration tax (~4.5%), and cadastral fees
The transfer tax is paid by the buyer at the time of sale. It is calculated on the purchase price stated in the notarial deed. Given Monaco's high property prices, these fees represent a significant absolute cost but are comparable to French registration fees.
Annual Property Tax (Taxe Foncière)
- Taxe foncière: Annual tax on land value (bâti — buildings, and non-bâti — undeveloped land)
- Basis: Calculated on the cadastral rental value (valeur locative cadastrale), which is much lower than market value
- Rates: Relatively modest compared to property values — typically €1,000-10,000 per year for most residential properties
- Liability: Paid by the owner as of January 1 of the tax year
- Taxe d'habitation: Monaco does not impose the French taxe d'habitation on residents (abolished in France for primary residences)
Taxe foncière is the only recurring property tax in Monaco. It is calculated on a notional rental value that is significantly below market rates, making the effective rate very low as a percentage of property value (typically 0.02-0.1% of market value annually).
Notary and Legal Fees
- Notary fee: Regulated fee based on property value, approximately 1-2% of purchase price (included in the ~5-7% total)
- Registration duty: Approximately 4.5% of purchase price (the main tax component)
- Mortgage registration: Additional fee if financing the purchase with a mortgage loan
- Cadastre fee: Fee for cadastral surveys and title registration
Buyers should budget approximately 7-10% of the purchase price for total transaction costs including taxes, notary fees, and legal advice. This is similar to France and higher than many other jurisdictions.
Do foreigners pay the same property tax as residents?
Yes. Monaco applies the same property tax rules to residents and non-residents. There are no additional surcharges on foreign buyers. Non-residents purchasing Monaco property pay the same registration fees and taxe foncière as residents. Monaco does not discriminate between domestic and foreign property buyers.
Is there a tax on rental income from property?
Rental income from Monaco property is not subject to Monaco income tax for non-French residents (0% PIT regime). French nationals may be subject to French income tax on rental income under the 1963 treaty. There is no specific rental income tax in Monaco. Detailed rental income guide →