Property law change signals new wave of expat investments
A new film reportedly starring Nicole Kidman as Princess Grace of Monaco is currently in production, focusing on the dispute that arose between France and Monaco in 1962 over the unequal tax arrangements of the respective countries. As a result, many wealthy French families were moving to Monaco to take advantage of the more beneficial tax regime.
Never, it seems, has a film been more timely. A June 2011 change in Monegasque law has reduced registration tax on sales of property from 7.5 per cent to 4.5 per cent, as well as allowing owners to let property without having to pay tax on the income. Moreover, comparative tightening of the French rules for properties owned by companies and trusts, as well as that country’s byzantine inheritance laws and potentially heavy capital gains tax, have all conspired to once again make Monaco the more attractive option for new investors from abroad.
Monaco has been an attractive proposition for wealthy individuals for many years, of course, with its combination of sea, sun and shopping, and now this change in the law appears to be coinciding with an upturn in interest from foreign buyers, after a period of stagnation. With prices at up to €50,000 per square metre, buying property can be an expensive business, but the new law does much to sharpen the appetite for such transactions.
For more information on Law 1381 and the effect it might have on your property investment decisions, see a fuller article here