Monaco Mortgages

Enness specialises in creating bespoke mortgage arrangements for high-net-worth individuals. The team has a proven track record brokering mortgages of all kinds in the Principality, including very complex and extremely high-value transactions.

Given Monaco is home to one of the world’s most expensive property markets, if you want to buy a home in the Principality, it pays to think about financing early. Around $1 million will buy you just 15 m² of prime real estate, and even the more modest properties are likely to cost several million euros. Especially for ultra-prime property, you will either not want or will not have the capital available to purchase cash. It is also worth noting that depending on your personal situation and background, it may be more efficient from a tax perspective to use a mortgage than to purchase in cash.

If you find a property to buy in Monaco, you will find things move with exceptional speed. There are almost always more buyers than sellers, and there is often a lot of competition for properties. Transactions can complete in just a couple of weeks and liquidity is essential. Few buyers will wait around for you to liquidate assets to complete a purchase, even if you’re buying at the very top end of the market. Mortgages are commonplace to ensure liquidity. Enness will negotiate and secure financing for you in parallel with the very demanding Monaco timeframes.

Enness does not offer package deals or standardised financing. Instead, you can expect a mortgage vehicle that’s built to meet all your requirements. Enness will also be able to identify and bring forward the details, assets and particulars of your situation that will help lenders offer the most competitive mortgage, no matter the cost of your property.  

Securing finance in Monaco isn’t necessarily straightforward given the speed with which you will need capital and, often, how much financing you need to secure the property.

There are many unique characteristics of the Monaco finance sector, but when it comes to buying property in Monaco, some highlights include:

• On properties valued up to €5 million, it is possible to arrange 85% finance with no assets under management
• With as little as €1 million pledged under an asset management arrangement, it is possible to finance a €5 million property acquisition fully
• Where finance requirements exceed €5 million, there is great flexibility with assets under management requirements of between 20% and 50% of the loan value
• For outright purchase, refinance and equity release, interest-only mortgages are available with a term of between five and ten years 
• Capital and interest repayment mortgages can often exceed 20 years in length
• The Monaco lending market facilitates all currencies
• Hybrid financing instruments taking in the fixed-rate, variable-rate, tracker and capped interest rates can add more flexibility and are readily available

Despite the number of private banks and lenders who operate in Monaco, getting the best deal for any sort of Monaco finance is usually a case of who you know.

Even for families or individuals who have been based in Monaco for many years and have personal banking relationships in the Principality, it can take a seasoned player to unlock the most competitive or advantageous finance.

Enness’ reputation will open doors for you, and with lending often time-critical, your broker will have both the track record and the connections to close the deal quickly all while securing you the best rates.

Knowing which details to bring to the table is also essential when it comes to buying a house in Monaco. Your income and liquidity will play a part in what lenders will offer you. However, Monaco – and its lenders – understand and appreciate worldwide assets, luxury assets, global real estate and wealth like no one else. Enness knows what lenders want to see and the finer details that can push Monaco finance from attractive to ultra-competitive.

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 negotiating property finance in Monaco, having a local presence is invaluable. Enness operates from the heart of the Principality with a multilingual, well-connected team. Your broker will leverage your global assets as collateral, optimise your cash flow to secure lower interest rates, and deliver the most competitive financing solution efficiently.

Whether you are purchasing a Monaco property or refinancing, Enness brings experience working with both local and international commercial and private banks. As an independent broker, Enness has access to all lenders offering Monaco finance and will approach the right institutions on your behalf. Whether you require a traditional mortgage or a complex arrangement involving overseas assets, trusts, or companies, Enness will build the financing structure to suit your needs seamlessly.