A haven for business owners, families, and expats in search of the high life, the Principality of Monaco has long been celebrated for its exceptionally high standard of living, its low taxation rate, and its booming real estate industry – the latter of which has recently been catapulted into the international limelight. We examine two of the factors that make the luxury real estate in Monaco such an alluring investment option for international buyers.
Monaco: the Lowest Property Tax Rate
Although they are charged for registering properties in their name (usually between 0.5% and 0.75% of property value), residents of Monaco pay no direct property tax; nor do they pay council tax of any sort. In a recent report on the world’s lowest and highest property taxes, it was also reported that residents of Monaco benefit from the lowermost tax rate for second homes: of the world’s top 15 cities, the Principality charges a rate of just 3.5% over a period of five years. Dubai offers the next lowest rate at 3.6%. In comparison, Miami charges residents 14.6% on their second homes. As many of Monaco’s inhabitants have two residences or more, this is a significant figure to bear in mind.
Most Expensive Real Estate in the World
The Principality also benefits from favourable property prices. Given that the Monaco property market is consistently buoyant, real estate in the Principality is a relatively safe bet for investors and businesspeople. Currently, Monaco enjoys the highest property prices in the world, setting the bar for the cost of each square metre. One million USD will buy 17.3m2 at present, which is higher than London, Hong Kong, and every other international business hub in the world. As could be expected of the world’s most expensive place to purchase a property, the Principality’s wealth density is higher than all other locations.
Monaco’s Demand for Real Estate
There are few projects in Monaco that are nearing completion, which is expected to raise housing prices further. However, as a result of the exceptionally high demand for real estate in Monaco, the government has taken action. An ambitious land reclamation project that will cost EUR 2 billion was recently started, which will see six hectares of land added to the existing 196. Roughly 120 new luxury apartments will be constructed on the land; they are expected to achieve sale values of approximately EUR 100,000 per square metre.
Monaco Properties for Sale: What’s on Offer?
Recently sold by La Costa Properties Monaco was this luxury apartment in the Golden Square. The property is a rare find in the Principality, due to its prestigious, central location near to the Casino de Monte Carlo and the fact that it has recently undergone a full refurbishment, which included the latest technologies and the use of the finest materials. The luxury apartment boasts panoramic views that stretch over the Mediterranean sea, while the building in which it is set benefits from an indoor swimming pool, a fitness room, a sauna, and 24-hour security. With two bedrooms, two bathrooms, one cellar, and a parking space, the apartment was ready to inhabit immediately. The property had an asking price of EUR 8.8 million.
Note: while every effort has been made to ensure the facts and figures listed in this article are correct, no assurance can be made against inaccuracies.