Monaco Mortgages

If you wish to buy property in Monaco, there are, in theory, very few "official" restrictions that will limit your ability to purchase real estate in the Principality. However, it should be noted that there are some subtle barriers to entry that you will need to consider and plan for, especially if you want to live in Monaco.

If you wish to purchase a property in Monaco for investment purposes and you don’t plan on living or moving your residence to the Principality, there are almost no barriers to entry. Monaco has a very international outlook, and there are no restrictions – beyond property price – on foreign real estate ownership. If you can find the real estate you want to buy and it fits your investment goals, few other regulations will constrain you from purchasing a property in Monaco. Financing a property sale in the Principality is likely to be more challenging, especially if you are buying luxury or prime real estate, which generally comes with a significant price tag.  

Rules are similar if you want to live in the Principality and want to buy a property in Monaco to allow you to do so. Where other countries typically want you to secure residency before you purchase property, this system is reversed in Monaco. You will only be able to apply for Monaco’s permanent residency card if you can show authorities proof that you (or a close relative, e.g., husband and wife, cohabiting couples, parents and children) have secured housing. This can either be through long-term rental (at least one year) or if you have bought a property in Monaco. If you are a director in a company that owns Monégasque real estate, this would also suffice.

You will also need to prove you can comfortably afford to live in Monaco in addition to a property purchase or rental. Specialist firms will be able to help you with precisely what this entails. Generally, however, you will need to deposit a significant sum in a Monaco bank at the time of your residence application if you want to reside in Monaco and you aren’t gainfully employed in the Principality. Employment in Monaco (either as an employee or through ownership of a Monaco company) or support from a family member is also considered proof of being financially secure enough to get a residence card.

So, can foreigners buy property in Monaco? In short, yes. As always, you should work with immigration specialists who will advise you of fuller requirements and considerations. However, the property cost is a serious limitation for most people when it comes to Monegasque real estate, rather than administrative or legal requirements as can be the case in other countries.

Buying property in Monaco can be tricky for other reasons for foreigners. The real estate market is exceptionally competitive given the popularity of the Principality and the fact that there are often more would-be buyers than there are sellers. Expect competition for property, even at the top end of the market. Liquidity and being able to move forward quickly with a transaction are keys to success.

You will want to think about finance for your Monaco property well ahead of time. Monaco is essentially a sellers’ market, and that is unlikely to change anytime soon. With properties regularly selling for multiple millions of euros, making sure you have capital readily available to you to buy a property is especially important. Whatever your reason for buying in Monaco, you are likely to have specific requirements for your property. Given demand far outstrips supply, your ideal property to buy in Monaco will rarely come up twice in a short space of time. In other words, be prepared to move quickly and decisively when you find what you are looking for. Working with Enness early to get in principle mortgage finance offers from lenders will help you keep things moving when you find the Monaco property you want to purchase. As a result, you will find that you may have the edge over other interested buyers.

When it comes to negotiating any kind of financing in Monaco, there is no substitute for having feet on the ground. Therefore, Enness has a multilingual and well-connected team that operates from the Principality. Your broker will be able to utilise your worldwide assets that you can use as collateral, use your cash flow to minimise interest rates and deliver the best deal to you in an extremely time-efficient manner.

If you wish to buy property in Monaco, you will benefit from Enness’ experience with both local and international commercial and private banks. Enness’ independent status also means that your broker will be able to approach any lender that offers Monaco finance on your behalf. They will also be able to go directly to the institutions that will offer you the best mortgage deal. Whether you are looking at a relatively traditional mortgage arrangement or one involving overseas assets, trusts and companies, Enness will structure the deal around you and your needs.