The Short Answer: Transaction costs in Monaco depend entirely on the age of the property. For a standard resale apartment (“Ancien”), total acquisition costs are approximately 6.25% of the purchase price. However, if you purchase a new development (“Neuf”) or a property under construction (VEFA), these costs drop to approximately 2.5%. On a €5 million purchase, this difference saves you €187,500 in upfront taxes.
When browsing real estate listings in Monte Carlo or La Condamine, most buyers focus on the price per square meter. However, the “Frais de Notaire” (Notary Fees) can significantly impact your total capital requirement.
In Monaco, the buyer pays the notary fees. These are not just fees for the notary’s work; they are mostly government taxes collected by the notary.
Understanding the difference between the “Old” and “New” tax regimes is one of the easiest ways to optimize your investment.
The Standard Cost: Buying a “Resale” Property
Most properties in Monaco are considered “Resale” or Ancien. This applies to any apartment that has already been sold at least once or is more than five years old.
If you buy a classic apartment in the Monte Carlo Neighborhood, the transaction costs are calculated as follows:
- Registration Duty: 4.5% (Paid to the Government)
- Notary Fees: ~1.5% (Drafting of the deed)
- Total Cost: ~6% to 6.25%
Important Note: If you buy the property through a company (like an SCI) rather than in your personal name, the Registration Duty jumps to 7.5%, pushing the total cost closer to 9%.
The “New Build” Advantage
Monaco actively encourages the construction of modern housing. To support this, the government offers a reduced tax regime for properties that are:
- Newly built and never lived in.
- Sold “Off-Plan” (VEFA – Vente en l’État Futur d’Achèvement).
For these properties, the registration duty is drastically reduced.
- Registration Duty: 1.0%
- Notary Fees: ~1.5%
- Total Cost: ~2.5%
This applies to major new developments like Mareterra or L’Exotique in the Jardin Exotique Neighborhood.
The Real World Calculation
Let’s look at the numbers on a €10 million transaction.
Scenario A: The Vintage Penthouse (Resale)
- Purchase Price: €10,000,000
- Notary Fees (6.25%): €625,000
- Total Cash Needed: €10,625,000
Scenario B: The New Development (New Build)
- Purchase Price: €10,000,000
- Notary Fees (2.5%): €250,000
- Total Cash Needed: €10,250,000
The Saving: You save €375,000 in sunk costs simply by choosing a new building. This is capital that can be used for furniture, renovation, or your first year of living expenses.
The “Hidden” VAT Factor
There is one catch. While the notary fees are lower on new builds, the list price usually includes VAT (TVA) at 20%.
- Resale prices are net. There is no added VAT.
- New Build prices are usually displayed as “TTC” (Toutes Taxes Comprises), meaning the 20% VAT is already inside the asking price.
You do not pay the VAT on top of the advertised price, but it explains why the price per square meter for new builds is often higher. The benefit is that the transaction tax (the money that disappears to the state) is lower.
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Navigating the difference between “SCI purchases,” “Resale,” and “VEFA” can be confusing. The wrong structure can cost you 3% in unnecessary taxes.
We work with Monaco’s top notaries who can review your target property and provide a line-by-line estimation of the total acquisition cost before you make an offer.
Read Next
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- Market Insight: The Benefits of Buying Property in Monaco
Frequently Asked Questions
Who pays the agency fee in Monaco?
The agency commission is typically split. The buyer pays 3% + VAT, and the seller pays 5% + VAT. This is separate from the notary fees discussed above.
Does the 2.5% rate apply if I renovate an old apartment?
No. Simply renovating a kitchen does not qualify for the reduced rate. The property must be completely rebuilt from the structural shell to qualify as “New,” which is rare for individual apartment renovations.
Can I get a mortgage for the notary fees?
Generally, Monaco banks require you to pay the notary fees and the agency fees in cash. They will usually only lend against the value of the property itself.
Are notary fees fixed by law?
Yes. The notary fee scale is set by the Prince’s Government. You cannot negotiate the tax portion (Registration Duty), though there may be small variances in administrative disbursements.