High wealth investors seeking luxury real estate without the burden of capital gains tax, look to Monaco. The Principality offers much in terms of quality of life, in addition to exemption from income and real property taxes. Reforms imposed on Paris residents in 2012, of up to 75 per cent of total gains, has driven many new residents to the Principality, as French citizens perform an economic protest in response to what has been articulated as unfair taxation of the rich.
Monaco Property Prices
If luxury surroundings are said to be worth their weight in gold, the Principality certainly fulfills this promise. The median price for Monaco real estate per square metre is presently USD $57,600 to $63,700, or USD $5,350 to $5,920 per square foot. In 2013, the escalation of property prices in Monaco was double to quadruple that of other real estate markets globally. At present, suggest real estate analysts, USD $1 million buys about 16 square meters in a prime district, and this is moderate in terms of accommodation and resale value.
In 2013, investors were paying up to €70,000 per square meter. New build options offering luminous spatial arrangements and added amenities are in hot demand for this reason, as older Monaco properties often share similar spatial constraints as that of Paris. While no luxury is too much of an expense so to speak, property buyers are making concessions to remain in the historical part of the city, and it is paying off in resale.
Buildings located in the centre are older. If renovation or rehabilitation of an apartment or villa is in order, it may be listed at a fraction of the cost of new construction housing. Understanding Monaco real estate prices is fairly simple: premium and luxury properties are subject to predictable upward price inflation.
Hidden Property Costs
Property purchases weighted with additional costs and a commission rate of per cent is normal in the region. Buyers should beware that all Monaco property agents assess administrative fees to processing of conveyances and property title.
Most Monaco real estate transactions carry a 6 per cent fee base, with additional major costs in utility bills. Electricity service costs from €400 per month in Monaco. The offset is that there are not property taxes. Parking costs approximately €250-300 per month, which is surprisingly inexpensive relative to neighbouring markets. After one year in Monaco, UK citizens may apply for a Carte de Sejour; the official Surete Publique document given to long-term residents.