Monaco Mortgage Guide: Factsheet and FAQ

• Fact Sheet Overview
• Key Facts (Eligibility, Types, Process, Features)
• Key Numbers (LTV, Rates, Deposit, DTI, etc.)
• Key Costs & Taxes (Purchase & Annual)
• Equity Release & Refinancing
• Tax Advantages & Considerations
• Key Considerations (Docs, Insurance, Risks, Structures)
• Illustrative Example Scenario
• Next Steps
• FAQ (Monaco mortgages): eligibility, LTV, rates, interest-only, docs, timing, insurance, structures, taxes, currency, letting, tax treatment, capital gains, resale, moving, legal updates, home-bank finance, revaluation

Fact Sheet: Monaco Mortgages for Non-Residents (HNWIs)

Full country guide: Monaco Mortgage Guide 2026 (country guide) — full article

Key Facts:

Full country guide links: Monaco mortgage eligibility | Monaco mortgage types | Monaco mortgage process

Eligibility:

Monaco Mortgage Guide (country): Eligibility & requirements for a Monaco mortgage

• No restrictions on foreign ownership; non-residents eligible for Monaco mortgages.
• Banks require strong financial standing and thorough due diligence.
• Monaco applies strict anti-money-laundering checks (source of funds, source of wealth).

Mortgage Types:

Monaco Mortgage Guide (country): Types of Monaco mortgage loans | Monaco mortgage rates: fixed vs variable | Monaco interest-only mortgage vs repayment mortgage

• Fixed-Rate Mortgages (Monaco): Stable monthly payments.
• Variable-Rate Mortgages (Monaco): Linked to Euribor + margin.
• Interest-Only ("In Fine") Mortgages (Monaco): Common for HNWIs; principal repaid at term-end, often secured by pledged assets.

Mortgage Process Timeline:

Monaco Mortgage Guide (country): Step-by-step Monaco mortgage application process

• Pre-approval (optional, ~1-2 weeks).
• Property search & signing preliminary contract (10% deposit required).
• Formal Monaco mortgage application & underwriting (4-6 weeks).
• Mortgage offer and 10-day cooling-off period (mandatory).
• Closing (Acte de Vente) with notary (~8-12 weeks total).

Mortgage Features:

Monaco Mortgage Guide (country): Typical Monaco mortgage terms (duration) | Monaco Mortgage Guide (country): Monaco mortgage LTV & deposit rules

• Loan terms typically shorter (5-15 years), up to 20-25 years possible.
• High down payment (equity contribution) typically required (30%-50%).
• Loans commonly denominated in EUR; multi-currency loans rare but available.

Key Numbers:

Full country guide: Monaco mortgage LTV & down payment | Monaco mortgage interest rates

Key Costs & Taxes (Beyond Mortgage):

Full country guide: Monaco Mortgage Guide (country): costs, fees & taxes for Monaco property purchases

Property Purchase Costs:

• Existing Properties (Monaco): ~6% total (notary fees ~1.5% + transfer tax ~4.5%).
• New-Build Properties (Monaco): 20% VAT included in price + ~2.5% notary & registration fees.

Agency Fees:

• Typically 3% of the property price (+20% VAT); often buyer pays.

Mortgage Registration Fees:

• Approximately 0.5%-1% of loan amount.

Mortgage Arrangement Fees:

• Typically ~1% of loan amount; negotiable based on relationship with bank.

Insurance:

• Life Insurance (Monaco mortgage): Often required; premiums depend on borrower’s age & health.
• Home Insurance (Monaco property): Mandatory; typically a few hundred euros annually.

Equity Release & Refinancing in Monaco:

Full country guide links: Monaco mortgage refinancing & maintaining your loan | Monaco mortgage early repayment penalties & fees

Equity Release:

• Limited; primarily through private banking and asset-backed lending arrangements in Monaco.
• Rarely exceeds 30% LTV without significant pledged collateral.

Refinancing:

• Possible, especially to capture lower interest rates on Monaco mortgages.
• Early repayment penalty typically capped at 3% or 6 months' interest (whichever lower).

Tax Advantages & Considerations:

Full country guide: Monaco Mortgage Guide (country): tax considerations for Monaco property ownership

• No Annual Property Taxes (Monaco): Monaco levies no ongoing property taxes or council taxes.
• No Capital Gains Tax (Monaco): No tax on profits from property sales (except French nationals subject to French CGT).
• Rental Income Tax (Monaco): If rented, 1% tax on rental income.

Key Considerations:

Full country guide: Monaco Mortgage Guide (country): key considerations, risks, AML, documents & structures

Documentation Required:

• Passport, proof of address, bank statements (3-6 months).
• Comprehensive income verification (pay slips, tax returns, company accounts).
• Full disclosure of liabilities and source of funds.

Asset Requirements:

• Banks frequently require substantial assets deposited with them in Monaco.
• High-net-worth borrowers may leverage asset-backed lending (interest-only Monaco mortgages).

Foreign Currency Risks:

• Monaco mortgages generally EUR-denominated; consider currency fluctuation risks if income/assets in other currencies.

Ownership Structures:

• Personal ownership common; SCI (civil property company) used occasionally for estate planning.
• Complexities arise with corporate structures, impacting taxes, lending, and legalities.

Resale Considerations:

• Highly liquid market but expect high transaction costs (~6%-10% of Monaco property value).
• Early loan payoff penalties common for fixed-rate Monaco mortgages.

Illustrative Example Scenario:

Full country guide: Monaco Mortgage Guide (country): example mortgage calculation & cost breakdown

• Property Purchase: Monaco apartment, €2 million.
• Mortgage: 60% LTV (€1.2M), 20-year fixed-rate, 3%.
• Monthly Payment: ~€6,650 (Capital + Interest).
• Deposit & Fees: Approx. €800k deposit + €120k notary & tax + €72k agency fees (~€992k total upfront).
• No annual property taxes; ongoing insurance & mortgage payments are the main ongoing costs.

Next Steps:

Full country guide: Monaco Mortgage Guide (country): application steps & timeline

• Engage Traverse for a set of personalised Monaco mortgage options.
• Pre-arrange funds for down payment and associated fees (significant cash liquidity required in Monaco).
• Carefully review loan structures (interest-only vs. amortising) aligning with financial strategy.
• Factor in Monaco residency implications (if applicable) and consider asset management benefits.

FAQ: Mortgages in Monaco

Full country guide: Monaco Mortgage Guide 2025 (country guide) — full article

Who can get a Monaco mortgage?

Monaco Mortgage Guide (country): who is eligible for a Monaco mortgage?

Mortgages in Monaco are available to both residents and non-residents without nationality restrictions. Monaco’s banks require applicants to demonstrate significant financial stability, strong income, and substantial assets. The principality imposes strict due diligence, including comprehensive anti-money-laundering checks. Typical requirements include a solid financial profile, a low debt-to-income ratio (ideally below 35%), and extensive documentation verifying income and assets.

Foreign buyer conditions: Non-residents are eligible but often face stricter terms. Typically, lenders require higher down payments (30–50%) and lower loan-to-value ratios (LTVs). Some banks might require non-residents to pledge additional assets or place substantial deposits under the bank’s management. Being a non-resident or foreign national isn't restrictive, but it can impact lending terms and result in slightly higher interest rates compared to residents or EU nationals.

Maximum Loan-to-Value (LTV)?

Monaco Mortgage Guide (country): maximum LTV and deposit for Monaco mortgages

How much can you borrow? Monaco banks usually offer conservative LTVs, commonly ranging from 50% to 70%. Buyers typically contribute a down payment of between 30–50% of the property price. Exceptionally, banks might offer up to 100% financing for ultra-high-net-worth individuals who pledge significant additional collateral, such as liquid assets or investment portfolios.

Example: A €2 million apartment typically requires a down payment of €600,000–€1 million (30–50%), with the remainder financed by the bank (€1–1.4 million).

Banks adjust LTV depending on the borrower's financial strength, residency status, pledged assets, and property liquidity.

Typical Interest Rates?

Monaco Mortgage Guide (country): typical Monaco mortgage interest rates (fixed vs variable)

Current rates: Mortgage rates in Monaco align closely with European trends. As of 2024–2025, average fixed rates range between 3%–4%, and variable rates typically are set at Euribor + 1% to 2%.

Fixed vs. variable:

• Fixed-rate Monaco mortgage: Guarantees stable payments over the loan term.
• Variable-rate Monaco mortgage: Adjusts according to Euribor plus a bank margin.
• Hybrid or capped Monaco mortgage rates may be available occasionally.

Rates depend significantly on your relationship with the bank and whether you hold additional assets with them.

Interest-Only Mortgages?

Monaco Mortgage Guide (country): interest-only ("in fine") Monaco mortgages

Are interest-only loans available? Yes, interest-only ("In Fine") loans are quite common in Monaco, especially among high-net-worth clients. With these loans, borrowers only pay interest monthly and repay the entire principal at maturity.

• Typically offered for 5–10 years.
• Usually secured by pledged assets or significant collateral.
• Commonly requires maintaining substantial funds or investments with the lender.

Required Documentation?

Monaco Mortgage Guide (country): Monaco mortgage documents required (application step)

What paperwork do you need? Monaco lenders demand extensive documentation:

• Identification: Passport, proof of address.
• Income verification: Payslips, tax returns, or company financial statements (last 2–3 years).
• Bank statements: Typically covering at least 3 months.
• Existing liabilities: Loan and mortgage statements.
• Asset documentation: Evidence of financial assets (bank/investment statements).
• Property details: Preliminary purchase contract.

All documents should be comprehensive and might require translations into French or English.

Time to Get a Mortgage?

Monaco Mortgage Guide (country): Monaco mortgage timeline (step-by-step)

How long does it take? Mortgages in Monaco typically take 8–12 weeks from application to funding:

• Pre-approval: 1–2 weeks (optional but advisable).
• Formal application and underwriting: 4–6 weeks.
• Cooling-off period: Mandatory 10-day reflection period.
• Closing: Usually within 2–3 months after preliminary agreement.

Life Insurance?

Monaco Mortgage Guide (country): Monaco mortgage offer & insurance requirements

Is life insurance required? Life insurance, covering the full loan amount, is typically required by Monaco lenders.

• Policies usually must cover death or disability.
• Premiums vary based on borrower’s age and health.
• Banks may offer their own group policies, though external providers are acceptable.
• Home insurance is also mandatory.

Buying Through a Company or Trust?

Monaco Mortgage Guide (country): buying via company/structure & Monaco mortgage lending

Can I use a company or trust? Using companies or trusts for purchasing Monaco real estate is possible but complicated:

• Monaco recognises personal ownership and local civil property companies (SCI).
• Foreign trusts or offshore companies are typically discouraged due to transparency concerns.
• Banks may offer less favourable terms (lower LTV, higher rates) where structures are complex.

Taxes?

Monaco Mortgage Guide (country): Monaco purchase taxes, notary fees & mortgage costs | Monaco Mortgage Guide (country): Monaco tax considerations during ownership

What taxes apply when buying a home in Monaco?

• Transfer tax & notary fees: Approximately 6% for resale properties (1.5% notary + 4.5% tax).
• VAT (TVA): 20% on new-build properties, typically included in the price, plus ~2.5% for reduced notary and registration fees.
• Agency fees: Typically 3% (+20% VAT) usually borne by the buyer.

Currency Fluctuations?

Monaco Mortgage Guide (country): multi-currency Monaco mortgages & FX risk

How does currency risk affect me? Monaco mortgages are primarily denominated in euros. Currency risk arises if your income or assets are in other currencies.

Renting Out the Property?

Monaco Mortgage Guide (country): Monaco rental tax and ownership considerations

Can I rent my mortgaged home? Yes, but inform the lender and insurer. Rental income incurs a 1% tax in Monaco.

Tax Benefits of a Mortgage?

Monaco Mortgage Guide (country): mortgage tax treatment in Monaco

Are there tax deductions for having a mortgage? No personal income tax in Monaco means no mortgage interest deductions for individuals.

Capital Gains Tax?

Monaco Mortgage Guide (country): capital gains tax position for Monaco property

Will I owe tax when I sell? No Monaco capital gains tax for most buyers (except French nationals subject to French rules).

Restrictions on Reselling?

Monaco Mortgage Guide (country): early repayment penalties on Monaco mortgages

Can I resell soon after buying? Yes. However, early repayment penalties on fixed-rate Monaco mortgages may apply.

Moving to Monaco?

Monaco Mortgage Guide (country): Monaco residency notes for property buyers

Does owning property help with residency? It can support an application, but it does not automatically confer residency.

Recent Legal Changes?

Monaco Mortgage Guide (country): AML rules, compliance and legal considerations for Monaco mortgages

Have there been recent legal changes? Monaco updates AML and transparency standards regularly; banks remain strict on documentation and source-of-funds.

Using Financing from a Home Country Bank?

Monaco Mortgage Guide (country): financing options for Monaco property

Can I get a loan from a foreign bank for a Monaco property? Generally no; most buyers use Monaco banks or asset-backed loans abroad.

Revaluation of the Property?

Monaco Mortgage Guide (country): refinancing and revaluation for Monaco mortgages

Does the bank revalue the property later? Typically only at refinancing; not routinely during the mortgage term.