Monaco blossoms under French tax changes

Monaco blossoms under French tax changes

New French property tax laws are pushing wealthy buyers away from the traditional Riviera resorts and into Monaco say local agency and accountancy experts.

Monaco is becoming an ever-more “popular choice of tax residence not only because there is no wealth or income tax but also because of its aspirational location on the coast, its high quality of life and its high levels of security,” Cecile Acolas of tax advice and residential planning consultancy Ellisium Partners commented.

“The June 2011 law reduced to 4.5% the registration tax charged on a typical Monaco property sale. Monaco in particular allows an investor to rent their property without any tax on the rental income and also to sell a property without paying Capital Gains Tax. It is also possible to own a property in Monaco through offshore companies and trusts without being penalised and providing a secure and discrete investment, which is good for clients wishing to protect their assets." she added.

Monaco continues to be a real magnet for international residential property investors with only 20% of the 35,000 residents Monégasque. Buyers from abroad favour modern apartments close to the Carré d'Or, the beach area of Larvotto, and in Fontvieille, a district reclaimed from the Mediterranean in 1981.

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A Place In The Sun