Monaco has a long history of attracting HNWIs to relocate. A consequence of a benign and stable tax regime, superb global communications via Nice airport, world class health-care and an enviable Mediterranean lifestyle in the heart of Europe. It is therefore of little surprise that it is an attractive place to take residency.

For prospective newcomers to Monaco the idea of purchasing a property in the first instance can, however,  be a daunting one. High capital values, amongst the highest in the world, and expensive transactional costs can dissuade prospective residents, which is why the rental market is so vitally important to Monaco’s overall prosperity.

Why is it the case?

The key word is FLEXIBILITY. Prospective new residents need to have a property in which to live in order to apply for a residency card. It is not necessary, however, to buy, and a one year rental suffices. Having the flexibility of a rental means that prospective residents don’t feel ‘trapped’ in the event that matters do not evolve as anticipated. It is often the case that some new residents do not see Monaco as a ‘forever’ relocation and having the flexibility of a rental allows them to plan their lives accordingly. For others who build their lives, both domestic and commercial, in Monaco, the prospect of going on to purchase a property makes much more sense.

Having a vibrant, and, above all, flexible rental market, makes a compelling case for Monaco as THE destination of choice for those looking to relocate.

So how does it all work in practice?

Having found a property you wish to rent, the process is to submit an offer, in writing, usually through an agent, setting out the level of rent you wish to pay and any other conditions you wish to stipulate. If the offer is accepted and countersigned by the landlord, you will be required to make a payment representing the rental deposit of (usually) three months’ rent, plus a 10% agency fee + VAT based on the annual rental. Once the offer is accepted, should you not proceed for whatever reason, you will forfeit the deposit and agency fee.

There are other costs to bear in mind:

1. Registration duty at 1% of the annual rent plus service charges.
2. Stamp duty at 1€ per page of the lease
3. Bailiff fees- this is for an official report on the condition of the property at the start of the lease and another on the condition in which it should be returned at the end of the lease.