Many buyers ask themselves the question too late: should you purchase in your own name or through a company? In Monaco, this choice determines what you will pay at acquisition, how you will manage the property, and what will remain to pass on to your heirs. According to the IMSEE, more than one sale out of two exceeds €20 million in the Principality. At these price levels, choosing the wrong structure can cost several hundred thousand euros. Monegasque SCI, French SCI, holding company: this guide provides the keys to choosing the structure that best suits your needs.
In Monaco, the majority of property purchases are made in an individual's own name. If you are moving to the Principality, buying a property to live in, and your heirs are your children or spouse, direct ownership is simple and tax-efficient. Monaco applies no inheritance tax in the direct line of descent. This represents a significant saving compared with many other European countries.
Several profiles of buyers have an objective interest in using a company.
1- You are buying with other people. Without an SCI, you own the property through joint ownership. Each co-owner can block a decision, refuse a sale, or complicate rental management. An SCI allows you to define the rules in the articles of association and avoid these deadlock situations, which can eventually turn into disputes.
2- You are an entrepreneur exposed to professional risks. By holding your property through an SCI, you create a clear separation between your personal assets and your real estate holdings.
3- You have an international family. Parents in Monaco, children living in France, Italy, or Switzerland. Without an appropriate structure, the succession rules of several countries may overlap and generate double taxation.
4- You value confidentiality. In Monaco, information relating to the shareholders of an SCI is not publicly accessible, unlike in France where it appears in registers open to everyone.
The Monegasque Société Civile Immobilière is governed by Articles 1670 to 1711 of the Monegasque Civil Code. Its purpose is exclusively the holding and management of real estate assets; it cannot carry out any commercial activity. An SCI whose activity is reclassified as commercial would lose its legal and tax advantages. modernised several of its rules regarding governance and incorporation procedures.
To create one, at least two shareholders are required (individuals or legal entities, residents or non-residents, with no nationality requirement) and there is no minimum share capital imposed by law. The maximum duration is 99 years. The articles of association are freely drafted and then registered with the RCI (Trade and Industry Register of Monaco). Accounting obligations are simplified. A simple statement of income and expenses is sufficient, with no mandatory annual certified balance sheet.
The Monegasque SCI has three advantages that the French SCI cannot reproduce.
The first is confidentiality. The names of the shareholders are not published in Monegasque public registers, except upon official request from the competent authorities.
The second is its wealth management flexibility. Unlike a French SCI which is limited to real estate assets only, a Monegasque SCI can hold movable assets: financial portfolios, shares in other companies, and cash. This feature opens a very interesting window for succession planning. If more than 50% of the SCI’s assets are movable, the shares may be transmitted under Monegasque law where inheritance tax in the direct line is zero rather than under French rules.
The third is management flexibility. The articles of association can be fully customised: who makes decisions, under what conditions shares can be transferred, and how the manager’s powers are defined. This helps avoid situations where a shareholder can suddenly block a sale or an important management decision.
Monaco is one of the rare jurisdictions in the world where inheritance tax in the direct line is zero: between parents and children, between grandparents and grandchildren, and between spouses. This rule is set out in the Monegasque Civil Code (Articles 602 to 760) and applies to assets located within the territory of the Principality, regardless of the domicile, residence, or nationality of the deceased. For transfers between unrelated third parties, the applicable rate is 16%. This is one of the strongest wealth planning advantages of Monaco for international families.
A word of caution is necessary, however. These advantages apply only to assets located in Monaco. For assets located in France, French tax rules continue to apply, regardless of the structure used. The allocation of taxing rights between the two countries is governed by the Franco-Monegasque Convention of 1 April 1950, which is based on the geographical location of the assets.
By holding your property within an SCI, you can transfer your wealth without ever moving the underlying asset. You can gift shares to your children during your lifetime while retaining management control, and continue managing the property as before. This approach allows you to anticipate succession without losing control, and to integrate heirs into the structure gradually, according to terms freely defined in the articles of association.
It also helps avoid one of the most common issues in real estate inheritance: post-inheritance joint ownership. When several heirs become co-owners of the same property without a legal framework, disagreements over sale or management can paralyse family assets for years. The SCI resolves this issue in advance through its articles of association.
A fundamental principle of international tax law applies: it is the location of the property that determines the applicable tax regime, not the country where the company holding it is based. A property located in France is taxed in France, whether its owner is a Monegasque company, a Luxembourg entity or a Cayman structure.
Concretely, if your Monegasque SCI holds a property in France, all French taxes remain due: property tax, taxation of rental income, and the French Real Estate Wealth Tax (IFI) for shareholders who are French tax residents. The structure does not change these obligations.
Another important point of attention should not be overlooked: any foreign legal entity holding real estate in France is, in principle, subject to the annual 3% tax on the market value of the property. To be exempt, the Monegasque SCI must file a specific declaration every year before 15 May (form n° 2746-SD), stating the identity of the shareholders and the value of the property. This requirement, governed by Articles 990 D to 990 G of the French General Tax Code, generates recurring administrative costs, in addition to the legal domiciliation in Monaco. These are real costs that must be included in your budget from the outset.
The French SCI is simple to set up, costing less than €1,000, and its rules are well understood by most French lawyers and notaries. It can theoretically hold a property in Monaco, and some buyers prefer it for its administrative simplicity or because it can make access to mortgage financing easier with a French bank.
However, its tax limitations are significant when it is linked to a Monegasque asset. If the SCI is subject to personal income tax, the shareholders must declare their share of income in their French tax return. This mechanism mechanically reduces the benefit of residing in Monaco. If it opts for corporate tax, profits are taxed at company level and then taxed again upon dividend distribution. This double taxation reduces the overall profitability of the investment.
The key difference between a Monegasque SCI and a French SCI lies in their succession treatment. Shares in a Monegasque SCI are considered movable assets according to French Supreme Court case law (Court of Cassation ruling of 2 October 2015, no. 14-14.256). If the shareholder has not been a French tax resident for more than five years, the transfer of their shares follows the law of their country of residence. This is the real advantage of the Monegasque SCI for international families.
Let’s take the example of an Italian national residing in Switzerland who is a shareholder in a Monegasque SCI owning a villa in France. Upon their death, the succession of their shares follows Italian law or the law of their choice, not French civil law. A French SCI, on the other hand, remains fully subject to French succession law without exception, including forced heirship rules.
The Société Civile Particulière (SCP) in Monaco is often confused with the SCI, but it goes further. Its asset scope is much broader. It can simultaneously hold both real estate and movable assets, such as offices or commercial premises in the Principality. It is a wealth planning tool designed for families whose assets exceed several tens of millions of euros and whose members are based in multiple countries.
The SCP is more costly, more formal, and more demanding to manage than an SCI. It is not suitable for an isolated property purchase. However, for an international family looking to consolidate all its assets under a single structure and organise multi-generational wealth transfer, it can be the most powerful tool available in Monaco.
Some investors consider acquiring property through a foreign holding company, such as a Luxembourg, UK, or other jurisdictional structure. This approach was once popular for its discretion. It is still possible in Monaco, but the Monegasque tax framework has made it less attractive.
Law No. 1.381 of 29 June 2011, as amended by Law No. 1.548, establishes a simple principle: the more transparent your structure is, the lower the entry taxation. A Monegasque SCI whose shareholders are clearly identified by the tax authorities benefits from a 4.75% registration duty rate. A holding company whose beneficial owners remain opaque is taxed at 10%. On a €20 million property, the difference exceeds one million euros at acquisition. Opaque structures come at a cost.
The SOPARFI (Société de Participations Financières) is a Luxembourg holding company that benefits from favourable tax exemptions on dividends received from subsidiaries held at at least 25%. It can hold real estate anywhere in the world, including Monaco. However, in the context of an isolated acquisition in Monaco, it is classified as a non-transparent entity and is subject to the higher 10% registration duty rate.
Its value is mainly justified for a family group with assets in multiple countries, seeking to consolidate them under a holding structure with an economic rationale. For a standalone property acquisition in Monaco, the Monegasque SCI remains the more suitable option.
Below are the entry costs depending on the acquisition structure, as resulting from Law No. 1.548 of 6 July 2023, applicable since 1 October 2023.
Beyond registration duties, several additional items must be included in your acquisition budget. Agency fees are freely set by Monegasque real estate agencies and are subject to VAT. A deposit is paid upon signing the preliminary agreement. If you withdraw after the offer has been accepted, this deposit is forfeited.
If you finance the acquisition through a mortgage loan, an additional mortgage registration duty applies. Its amount is set under Monegasque law and varies depending on the loan amount.
For the SCI itself, you must also anticipate recurring annual costs: legal domiciliation, accounting services, and general meetings. These amounts vary depending on the service providers chosen and must be factored into your calculations from the outset.
This is the most common mistake. Many French buyers believe that by moving to Monaco, they automatically escape all tax obligations in France. This is incorrect. Under the Franco-Monegasque Tax Convention of 1963, French nationals who settled in Monaco after 13 October 1962 remain subject to French income tax on their worldwide income, exactly as if they were still living in France. This rule also applies to income generated by a Monegasque SCI in which they are shareholders.
If you are French, the legal structure you choose in Monaco will not change your tax situation in France. Before setting up any structure, you should consult a Franco-Monegasque tax lawyer. Nationals of other countries are treated differently, but they must also verify the applicable tax treaties between Monaco and their country of residence.
A Monegasque SCI holding a property in France remains subject to all French tax obligations related to that asset. The principle of territoriality applies: it is the country where the property is located that determines the applicable tax law, not where the company is registered. Concretely, property tax, rental income taxation, and any applicable French real estate wealth tax (IFI) follow French rules, regardless of the structure used.
Upon resale, the transfer of shares in a real estate-rich SCI generates a taxable real estate capital gain in France. The standard rate is 36.2% for French tax residents: 19% income tax and 17.2% social contributions. For non-residents of France who are affiliated with a mandatory social security scheme in an EEA country or Switzerland, social contributions are reduced to a 7.5% solidarity levy, bringing the total rate to 26.5%.
Holding period allowances apply beyond five years. Full income tax exemption is achieved after twenty-two years of ownership, while full exemption from social contributions is reached after thirty years.
Here are three typical profiles illustrating how the choice of structure is made in practice.
If you are a non-French Monegasque resident, buying to live in the property and wishing to pass it on to your children, the Monegasque SCI is the most suitable tool. It offers confidentiality, succession flexibility, and benefits from the most favourable registration duty rate.
If you are a French resident relocating to Monaco and purchasing your primary residence. In most cases buying in your own name is simpler and equally effective. Since Monaco does not apply inheritance tax in the direct line, there is no need for an SCI to protect your family.
If you belong to an international, multi-resident family with members based in different countries and a desire to organise succession outside French forced heirship rules, a Monegasque SCI with movable assets is the most robust solution, provided it is structured with the assistance of a specialist lawyer.
Can you buy property in Monaco in your own name or is a company mandatory?
Both options are possible. Monaco imposes no restrictions on the form of acquisition and makes no distinction between residents and non-residents. Purchasing in your own name is perfectly valid. Using a company structure serves patrimonial, succession or management objectives, not a legal requirement.
The difference is primarily fiscal. A transparent Monegasque SCI is subject to a 4.75% registration duty upon acquisition. A foreign holding or opaque structure is subject to a 10% rate. On a €10 million property, the difference exceeds €500,000 at entry. The Monegasque SCI imposes, in return, full transparency regarding the identity of its shareholders with the Direction des Services Fiscaux.
For assets located in Monaco, yes, in the direct line. Monaco applies no inheritance tax between parents and children, grandparents and grandchildren, or between spouses, in accordance with the Monegasque Civil Code. This principle applies to assets located within the territory of the Principality, regardless of the nationality or residence of the deceased. For assets located in France, French tax rules continue to apply independently of the structure.
Yes. The Principality does not require residency to set up a Monegasque SCI. However, the company must be registered in Monaco, and its shareholders, who must be exclusively individuals, must be disclosed to the Monegasque Tax Authorities in order to benefit from the transparent tax regime. Assistance from a Monegasque notary or lawyer is essential to incorporate the structure in compliance with all legal requirements.
Three key professionals. 1- The Monegasque notary is the public officer who secures the transaction and calculates the applicable duties. 2- The tax lawyer, ideally with dual Franco-Monegasque expertise, analyses the implications in each jurisdiction. 3- The chartered accountant handles the ongoing compliance obligations of the company once it has been incorporated. These three roles are distinct and complementary.
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