Monaco is one of the most sought-after destinations in the world for investors and homeowners—and for good reason.

Every morning, the Monegasque streets are cleaned, the crime rate is extremely low, there’s excellent health care, fantastic schools, and overall, a very safe and secure environment for families.

And let’s not forget the tax incentives—a big reason why many people move or buy an investment property in Monaco.

The remainder of this article will explain the advantages of buying a luxury property in Monaco, whether you intend to live there yourself or rent it out for investment purposes.

Monaco has an excellent economy

The Monaco economy is strong—it relies heavily on tourism and banking. In fact, Monaco citizens can't gamble or work at casinos, including the ever-so-popular Monte Carlo casino.

The casino is majority-owned by the government, creating tax revenue so that citizens do not need to pay any income tax. And as you likely already know, this is one of the biggest advantages of living in Monaco.

No real estate tax

There is no real estate tax in Monaco, making it a popular asset for property investors. Despite this, rental properties are taxed at 1% of the annual rent plus other charges.

But for those who plan on living in Monaco, having no estate taxes is definitely favorable.

Top holiday destination

If you do decide to rent out your luxury property in Monaco, despite rental taxes, it’s still a very profitable investment location.

This is because Monaco is a top tourist destination, especially for the wealthy.

You may even choose to live in Monaco for three months of the year to access tax benefits, and rent out your property during the remainder of the year to create a profitable source of income.

Rent out your luxury property

As previously mentioned, you may choose to rent out your luxury property. For example, you can rent a villa on sites such as Booking.com or Airbnb. Short-term rentals allow you to rent the property as needed, vs. a long term rental, enabling you to stay in the property when you’d like.

No property or capital gains tax

Another tax benefit to living in Monaco—there are no property or capital gains taxes. Again, this makes it a very desirable location for investors and those looking to buy a luxury home. If you plan on staying long-term, you’ll save even more money, even if you decide to move home after a few years.

Can a foreigner buy a house in Monaco?

Yes! Foreigners can buy properties in Monaco. In fact, a lot of people move to Monaco to buy a property, whether to live or for investment purposes.

When purchasing a property, you will benefit from various tax incentives, making it a lucrative investment opportunity.

Why do people buy houses in Monaco?

There are lots of reasons why people buy houses in Monaco, including:

● Tax benefits

● Excellent healthcare

● A desirable Mediterranean lifestyle

● It's a very safe place with little crime

● An excellent investment opportunity

Aside from the main benefits listed above, Monaco is also one of the best places to live. It’s friendly, safe, and has an excellent economy. The streets are clean, the food is great, and the location is excellent. There’s a reason so many celebrities reside in Monaco!

Let us help you find your next luxury property in Monaco

Finding the right property in Monaco can be challenging. And because the demand for luxury property is so high on the coast, the prices can often be higher compared to similar square footage.

But again, you’re paying for the benefits of living in Monaco as well, not just the property itself.

So, if you need a helping hand to buy a luxury property in Monaco, whether a permanent residence or an investment property, contact the team at Bespoke Life today.

FAQs

Why are houses in Monaco so expensive?

Numerous factors influence the price of houses in Monaco, including the limited land mass—there’s very little room for new construction, and of course, the tax benefits creating more competition.

How much is an average house in Monaco?

The average price per square meter in Monaco is approximately $55,800.

Is Monaco very expensive to live?

Monaco is an expensive place to live. However, the tax incentives make it more lucrative for people. At a certain point, it makes more sense to live there for tax purposes than it would not to live there.

Buy luxury property Monaco

Advantages of Buying a Luxury Property in Monaco in 2025