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Monaco Real Estate - tax system changes require action before June 30th 2012 - does this apply to you?

Contributed by EBC Corporation SAM
17 March, 2012


June 2011 saw a number of changes in the tax system applying to real estate transactions in Monaco. As part of this change in the tax system there are several actions that need to be made before 30th June 2012 and this article aims to outline briefly the changes in the law and the actions required.

The Law 1.381 affects the sale and purchase of shares of non-transparent companies/legal entities (NTE’s) and by individuals and Monaco SCP’s (i.e. SCI) which hold or acquire Monaco real estate.

Before the new law came into effect it was possible to buy and sell shares in foreign companies that owned property in Monaco, such as offshore companies, without giving rise to transfer duties. These share transfers were usually made through private agreements and di not need to be registered with the Monaco tax authorities thereby avoiding transfer duties.

The changes introduced by the new law concern (a) the rates of registration duties and (b) with the implementation of new obligations applicable to certain companies or legal entities whose main assets consist of Monaco real estate.

A full list of the current registration duties and details of all of the reports, exceptions and penalties can be found on our as a download

However here are the actions that you need to take before 30th June 2012.

  • NTE’s must appoint an approved fiscal representative before 30th June 2012. 
  • To take advantage of the 1% duty rate on transfers from an NTE to individuals or a Monaco SCI, where the beneficial owner(s) is the same, this must be done before 30th June 2012. 

As an approved/authorised fiscal representative in Monaco I can now act as the Monaco representative of an NTE, so if this article applies to you and you need further guidance or explanation then please don’t hesitate to look at the full tax system changes implications on the website or contact me, Richard MacLellan richard.maclellan@ebc-trust.com
How can EBC help you?

  • Richard Maclellan is on the official list of approved/authorised fiscal representatives in Monaco and is now able to act as the Monaco representative of an NTE.
  • EBC is also able to form and administer offshore companies and Monaco SCI’s.



 


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