New Year + New Tax Reforms = New Investors to the Monaco Property Market

    ST TROPEZ, FRANCE, March 01, 2012 /24-7PressRelease/ -- Introduced in January this year (2012), the new French property tax laws implemented by President Sarkozy have induced wealthy buyers to look past the usual French Riviera hotspots and onto Monaco.

Accountancy experts believe Monaco is quickly becoming a favoured destination for affluent buyers because of its separation from France and the new, harsher French property tax laws. Of course its location on the French Riviera and its proximity to the Italian Riviera only adds to its allure.

The new French tax reforms have led those buying in the region to investigate the long-standing tax incentives available when buying luxury property in Monaco.

In June 2011 the Monaco authorities set out to reduce the property registration tax payable on the purchase of property for sale in Monaco; they achieved this by reducing it by 40% to just 4.5%. They also allow owners to rent their luxury property in Monaco without incurring taxation on rental income. Owners may also sell their property without having to pay expensive Capital Gains Tax.

Cecile Acolas of Ellisium Partners, a tax and residential consultancy firm, expands on the many other benefits of owning a luxury real estate in Monaco.

"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. Holding a Monegasque property through offshore companies and trusts could also allow clients tax advantages in Monaco. For instance, it is possible to transfer properties in Monaco to your spouse or children upon demise without paying inheritance tax - whereas in most European countries inheritance tax is quite high."

Cecile explains, "the use of offshore structures as a means of holding real estate in Monaco is common. The objective is usually part of general estate and succession planning or asset protection, as well as for tax planning reasons. On a transfer of ownership the purchaser acquires the shares in the offshore entity, thus indirectly acquiring the principal or sole asset, the real estate in Monaco. By this means, the registration taxes escaped the Monaco authorities. Law 1381 (29th June 2011) which is now in force substantially reduces the tax payable by individuals purchasing a property in their own name or through a Monaco SCI, while slightly increasing the tax on a purchase through an offshore entity. Previously, such a transaction taking place offshore escaped tax but, in a move to try to bring greater fairness, such transfers will now be subject to tax."

Monaco has long been a favoured real estate market for international investors and this looks set to only increase. Some of the most popular regions for investors to search for property for sale in Monaco have been in the region of Carre d'Or, Fontvieille and the beach area of Larrotto.

Whilst in previous years international buyers were predominantly French the industry has seen a steady rise in British, American, German and Russian buyers.

Lorenza von Stein's multilingual property consultants offer an incomparable facility to buyers and sellers of luxury property in Monaco. This is thanks to a professional team whose expertise in the Monegasque property market is second to none, handpicking only the most exclusive property for sale in Monaco and Monte Carlo.

For further information on how Lorenza von Stein can assist you in your search for property for sale in Monaco please visit the website at www.lorenzavonstein.com or contact the Monaco office on +377 97 97 97 02 77 to arrange a meeting with one of their knowledgeable Monaco estate agents.

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