Making a Monaco real estate investment: Guide to financing options

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Buying real estate in Monaco is a popular investment for the world’s richest individuals, with many choosing to either permanently reside in the Principality or invest in property as part of a long-term wealth strategy.  

Monaco’s economic and political security, robust financial infrastructure, tax-efficient status, enviable location, luxury lifestyle, and vibrant property market have all contributed to the Principality boasting the world’s most exclusive real estate market. To own property in Monaco is the ultimate investment and the reserve of the world’s richest individuals.

Due to vast demand and Monaco’s limited land mass – the second-smallest country in the world, second only to the Vatican – the Principality is now home to the world’s most expensive real estate. Indeed, according to the 2024 Real Estate Observatory Report, the price per square metre for resales in 2023 averaged just over 51,000 Euros, putting the mean average price of a Monaco property at 5.7 million Euros.

For many, the primary way to invest in Monaco is through a traditional mortgage secured through a Monaco bank. Here, we examine financing options, including Monaco mortgages.  

What Monaco real estate financing options are available? 

Traditional Mortgage Loans

The most common route for international buyers and Monegasques seeking to buy a property in Monaco is through traditional property financing options such as a Monaco mortgage.

These are typically available from financial institutions such as a Monaco private bank, many of which offer flexible lending terms and tailor-made solutions. A Monaco real estate investment can be made under a legal entity or in an individual’s name. 

Various types of mortgages are available, including: 

Fixed-Rate Mortgage

Fixed-rate mortgages offer a fixed rate of interest throughout the loan’s term. This consistency means that the borrower’s monthly principal and interest payments do not change, providing predictability and stability. Various term rates are often available. 

Adjustable-Rate Mortgages

Adjustable-rate mortgages, also called variable-rate mortgages, floating mortgages, or revisable-rate loans in French, mean that the interest rates are not fixed; thus, the amount of interest paid on the loan can fluctuate. With an ARM, the interest rate is initially fixed for a set period of time, after which the rate changes based on the performance of a specific benchmark. These are attractive loans as often the initial rates are lower than fixed-rate loans.  

Mixed Rate Loan

A mixed-rate loan, or capped adjustable mortgage, is a combination of a fixed-rate mortgage and a variable-rate mortgage. These types of loans typically offer a lower fixed interest rate for the first few years, followed by a capped variable rate, offering a balance between flexibility and predictability. 

There are various fees charged by Monaco banks for taking out a Monaco mortgage, including the bank’s processing fee, typically around 0.25% to 0.5% of the loan amount, notary fees (for the registration of the property at the mortgage office), typically around 1% of the loan amount, and, if requested, a valuation fee, which can range from 1,000 to 5,000 Euros. 

Bridging loans 

Bridging loans are a popular Monaco property financing option, providing a more short-term solution until other assets are liquidated. These loans are available from banks and financial institutions, either in Monaco or from overseas financial institutions, often in the investor’s home country, with varying terms and conditions depending on the country and the investor’s financial status.  

These types of loans provide quick access to funds and are a popular financing solution in fast-moving real estate markets like Monaco when funds are needed quickly to secure an investor’s property of choice.

The loan essentially works to bridge the gap until the investor can release funds from other investments, such as the sale of another property, a luxury collectible, funds, or stocks and shares. This enables investors to avoid liquidating high-yielding assets prematurely while still being able to make their Monaco investment a reality. 

A downside to bridging loans is that they often have higher interest rates and much shorter repayment periods, which make them a costlier loan option in the long run.

Government-sponsored financing options for Monaco real estate investments

There are several government-sponsored financing options, including loans for Monegasque nationals and civil servants, as well as loans for home improvements and maintenance. Two of the primary options include:

Loans for Monegasque nationals 

Loans are available for Monegasque nationals who wish to acquire a property for their family in Monaco’s private housing sector. Loans are available up to a maximum of 762,000 Euros, and individuals must commit to paying at least 15% of the property’s value. The monthly payment of the loan must not exceed a quarter of the household income. The interest rate is set at 4% (although there are exceptions if a child is born during the loan amortisation period), the maximum term period is 25 years, and the loan must be paid off by the age of 65. 

Loans for civil servants in Monaco 

A government-sponsored loan is available for civil servants wishing to acquire property, with an interest rate set at 5% for a maximum loan duration of 15 years. There are some exceptions where the interest rate can be reduced, but it is not possible for the rate to be lower than 2%. The loan amount – capped at 91,000 Euros – must not exceed 80% of the value of the property. The monthly payment of the loan, which is deducted from the applicant’s monthly salary, must not exceed a quarter of the household income and must be settled by the age of 65.

What is the process for taking out a Monaco mortgage? 

The process for taking out a Monaco mortgage involves several key steps. These typically include: 

  • Pre-approval, which involves the bank assessing your financial situation 
  • Mortgage loan application, including proof of income, employment status, and current financial status
  • Conditional offer, including details of the bank’s loan terms and repayment plan
  • A reflection period of up to 10 days from the receipt of the offer, in line with French legislation
  • Finalization and loan disbursement, including acceptance of the terms and conditions of the loan. The loan amount is typically available for up to four months.
  • Closing, including covering any costs associated with securing the Monaco mortgage, including bank and notary fees, as noted above. 

What documents will I need to take out a Monaco mortgage?

To take out a Monaco mortgage, you will need several documents. These may include: 

  • Valid passport as proof of identity 
  • Certificate of family composition, which details the members of your household
  • Legal proof of marital status, such as a marriage certificate (or divorce certificate if relevant)
  • Any prenuptial agreements or similar legal document
  • Proof of address, such as a recent utility bill
  • Employment contract, including the three last pay slips
  • Past tax returns (up to two years)
  • For self-employed individuals, your unique tax or business number, your professional status, accounts up to the past three years, and a certified letter from your accountant attesting to your income 
  • Documentation pertaining to any real estate ownership and current property tax obligations
  • Property evaluation by a notary
  • The sales or reservation contract on the property you wish to acquire
  • Bank statements for the last three months
  • A list of all assets that may influence your borrowing capacity
  • Current rental agreements on any other properties you own and rent out
  • Any additional proof of income, for example, pensions and dividends
  • An amortization schedule on the repayment of any other loans
  • All bank details 

It’s important to note that the above is a guide, and every financial institution will request documents based on each unique loan scenario. 

What is the property acquisition process? 

Once you have found your ideal Monaco real estate investment, the acquisition process is relatively straightforward. The key steps include: 

  • Submitting a written offer and agreeing on the sales price and terms and conditions
  • Instructing a Monaco notary 
  • Signing the pre-purchase agreement, or Compromis de Vente, and paying the required deposit
  • Conducting land registry searches, which is carried out by the Monaco notary
  • Contract completion and transfer of the final sales amount, including the settlement of costs and fees associated with the property acquisition
  • Registering the sale of the property, which is carried out by the Monaco notary 

You can learn more about the property acquisition process in our guide to buying Monaco real estate

Who can buy a property in Monaco?

The appeal of making a Monaco real estate investment is that there are no restrictions on foreign ownership. This means that anyone with sufficient financial means can invest in Monaco real estate. 

Beyond the investment opportunities that real estate offers, investing in Monaco property also provides a route to becoming a resident of Monaco, including eventually acquiring citizenship.

It is important to note that non-residents making a Monaco property acquisition must pay a higher purchase tax than residents and secure a certificate of residence from the Monaco government. 

How can La Costa Properties Monaco help with a Monaco real estate investment?

La Costa Properties Monaco is a leading real estate agency in Monaco that helps connect investors both in Monaco and internationally with their ideal property, either as their primary residence, holiday home, or investment portfolio. As a member of the prestigious Chambre Immobiliere de Monaco, we adhere to the highest standards of professionalism.

 As one of the Principality’s best Monaco real estate agencies, we have access to a superb selection of Monaco properties for sale, from chic studios to voluminous penthouses in some of the most sought-after and exclusive residences and districts. We can also connect investors with off-market listings that are not publicly available. Find a property in Monaco today; contact our real estate team and start your Monaco real estate investment journey.  



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