BUYING IN MONACO WITH AN SCI
When considering a property acquisition in Monaco, one of the first questions is whether to purchase in your own name or through a legal structure such as an SCI (Société Civile Immobilière). While most transactions are carried out in the buyer’s personal name, there are cases where using an SCI can provide additional flexibility in ownership, succession, or asset management. This article explores the main differences between the two approaches and outlines when each might be appropriate.
BUYING IN YOUR OWN NAME
In Monaco, the majority of acquisitions are made in the buyer’s personal name. This approach is simple to implement, fiscally advantageous for Monaco residents, and well suited to personal use. It covers a wide range of situations, whether the property is intended as a primary residence, a second home, or an individual rental investment.
Purchasing in your own name also brings clarity for inheritance planning. The absence of inheritance tax in direct lineage simplifies transmission, making this option particularly attractive for families establishing themselves in the Principality. In addition, holding property in your own name aligns with residency applications, as it provides straightforward evidence of housing in Monaco.
BUYING IN MONACO WITH AN SCI
An SCI is not a Monegasque vehicle but can be created in France or abroad, including jurisdictions such as Luxembourg or Switzerland. Once established, it can be used to acquire property in Monaco. This structure introduces more complexity but also offers specific advantages depending on the buyer’s profile and objectives.
An SCI is often chosen when several family members or partners wish to co-own a property. The company framework makes it possible to set clear rules for decision-making, management, and the allocation of costs. It can also play a role in succession planning, as company shares may be transferred progressively to heirs, allowing for tailored solutions while retaining control.
Some buyers also consider an SCI for asset protection. Since the property is held by a company rather than directly in an individual’s name, it may provide an additional layer of separation in cases such as divorce or disputes. The statutory flexibility of an SCI allows the appointment of managers, the inclusion of approval clauses, and adaptation to international circumstances.
POINTS OF CAUTION
Despite its benefits, an SCI is not always the most practical solution in Monaco. Creating and maintaining the structure involves legal and administrative formalities, including accounting requirements and transparency obligations regarding beneficial ownership.
Taxation is another key consideration. A French SCI, for example, may be subject to French corporate or income tax, which could offset the advantages of Monaco residency. For those seeking to establish their primary residence in the Principality, purchasing in one’s own name often remains the most efficient option, as it avoids unnecessary complexity and supports the residency process.
CHOOSING THE RIGHT STRUCTURE
Deciding whether to buy in Monaco with an SCI or in your own name depends on your personal situation, your asset strategy, and your long-term objectives. Each structure has different implications in terms of taxation, inheritance, management, and residency.
At Dameno Monaco Real Estate, we work closely with clients and their trusted legal or tax advisors to determine the most suitable approach. Our role is to ensure that the property transaction is handled with precision, discretion, and full alignment with the buyer’s strategic goals.
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MONACO PROPERTY PURCHASE FAQ
Is it common to buy property in Monaco with an SCI?
No. Most acquisitions are made in the buyer’s personal name. An SCI is generally reserved for specific situations such as co-ownership or succession planning.
Can a foreign SCI purchase property in Monaco?
Yes. An SCI can be established in France or abroad and used to acquire Monaco real estate, but the legal and tax consequences must be carefully reviewed.
Does an SCI provide tax advantages in Monaco?
Not necessarily. In some cases, an SCI may trigger taxation in the country where it is incorporated.
Which option is better for residency applications?
Purchasing in your own name is generally more straightforward when applying for a residence card in Monaco, as it provides clear evidence of housing.
