Why does a property in Monaco protect your wealth

In Monaco, you don’t just buy a flat with a view of the Mediterranean. You acquire an asset of a special kind: a property whose value lies not only in its location, of course, but also in everything that surrounds it. A secure, stable environment, and a tax system which, for over a century, has not eroded what you own or what you pass on to your heirs.

This is often what surprises buyers from abroad. At first, the focus is on the price per square metre. Then, as the project takes shape, it is the fundamentals that really matter: the property’s yield, the cost of ownership, and its value when it comes to passing it on. This is where Monaco stands out. Here’s why.

An asset that the tax system protects

The starting point is well known, but one rarely appreciates the full implications. Since a decree issued by Prince Charles III in 1869, Monaco has not levied income tax on resident individuals. This is a long-standing principle, deeply rooted in the very history of the Principality.

For a property owner, this has very tangible practical implications. No tax on wealth. No property tax nor residential tax. Capital gains realised when reselling a property are not taxed in Monaco. And in the direct line, between parents and children as well as between spouses, the inheritance rights to < a34> the property situated within the Principality shall be void.

Take these factors together and your view of a purchase changes. The property in which you live is also an asset that you retain without any tax burden year after year, which can generate some rental income, and which is passed on to your children without being reduced in value during the transfer. Few of the markets in Europe offer this continuity over the long term. It is this, rather than the prestige of the address, that ensures the continuity of families from one generation to the next.

A clarification to avoid any misunderstandings: French nationals are subject to a special scheme. Under the terms of the Franco-Monegasque tax convention of 1963, they remain, except in long-established cases, long-standing, are liable to tax in France on their income. For them, a project in Monaco is still being prepared with a dedicated tax advisory team, and we know where to direct them.

A small area, because there is a lack of land in

Taxation explains why people hold on to property in Monaco. The question remains as to why this property does not lose its value. The answer can be summed up in one word: scarcity.

The Principality covers an area of just a little more than two square kilometres. The land area is not increasing, or if so only slightly. The extension into the sea of Mareterra, inaugurated at the end of 2024, took several years of construction work to add six hectares to the territory. This illustrates the effort required in Monaco to create more space. Faced with this supply, international demand is not waning. This gap is supporting the prices just as much as anywhere else. In 2025, the average price stands at around 57,500 euros per square metre according to the IMSEE, at a historically high level.

In addition to its scarcity, the property market offers an environment that investors seek: everyday security, political stability and legal certainty in transactions. This explains why Monegasque property is often referred to as a safe haven. It is not just another investment, but an asset held precisely because it withstands the cycles that disrupt neighbouring markets.

What type of asset best preserves its value

All of this applies to the market as a whole. But within Monaco, all the properties do not be behave in the same way, and that’s where practical advice from the field makes all the difference.

A flat with an unobstructed, permanent sea view retains its value better than a property where the view may be blocked by future development. A high floor, a south-facing aspect, a spacious terrace: these are all criteria which, in Monaco, are not merely matters of comfort but factors of scarcity within scarcity itself. The block of flats also matters. A well-maintained building with manageable service charges is always easier to sell.

Understanding these nuances neighbourhood by neighbourhood, building by building, is what the job is all about. Two properties at the same price per square metre do not offer the same protection over time.

And what about the residence, in the midst of all this?

Buying a property and taking up residence are two separate processes. It is perfectly possible to purchase a property in Monaco without being a resident there, and many people do so. For those wishing to settle there, obtaining a residence permit is subject to a few clear conditions: having a place to live in the Principality, providing evidence of sufficient funds held with a Monegasque bank, and presenting a clean criminal record. The process is well-regulated and simpler than is often feared.

The cost of an acquisition

Planning your budget in advance helps avoid surprises when it comes to signing the contract. Since the reform came into force on 1 October 2023, registration fees on an existing property amount to 4.75 per cent when the purchaser is a natural person or a fully transparent entity. In addition to these fees, there are the notary’s fees and the estate agent’s commission. For a new-build property sold off-plan, the rules are different and registration fees are significantly reduced. This is yet another reason why new-build properties in Monaco have become so attractive since the arrival of Mareterra.

Frequently Asked Questions

At Agence Continentale, we understand the value of land

Since 1948, Agence Continentale has been supporting those and those who choose Monaco, whether to live there or to invest there. We know every neighbourhood, every building, and what makes a18> ensures that a property retains its value when others lose theirs. It is this knowledge, patiently built up, which we put at the service of your project.

Please contact us to discuss this: +377 93 50 54 64, info@continentale.mc