Monaco Real Estate Inheritance: Complete Procedure Guide

Published on October 4, 2025 and written by Cyril Jarnias

Real Estate Succession in Monaco

Monaco, a prestigious Mediterranean enclave, requires particular attention due to its unique legal and tax specificities. For anyone considering transferring real estate assets in this exceptional setting, understanding the nuances of the complete procedure is essential.

Key Steps in Real Estate Succession

From designating heirs to tax implications, including notarial formalities, each step carries crucial importance to avoid potential pitfalls.

Tradition and Modernity

This article will guide you through the complexities of this universe, where tradition and modernity converge to create a legal framework that is both elaborate and rigorous.

Specifics of Real Estate Succession in Monaco

The Monegasque legal framework for real estate succession is marked by notable specificities. Monaco applies Law No. 1.448 of June 28, 2017 concerning private international law, which establishes a unity rule: the applicable succession law is that of the deceased’s domicile at the time of death, defined as the principal establishment, aligning the Monegasque system with European standards while avoiding conflicts of law. The Monegasque Civil Code also provides strong protection for certain heirs (particularly children) through the hereditary reserve (Articles 780 and following), guaranteeing them a minimum share in the succession even if the deceased had written a contrary will.

The real estate market in Monaco is distinguished by its very limited size and extreme exclusivity. The limited land space makes each property rare and particularly expensive, increasing the patrimonial importance of real estate successions in the Principality. The high value of properties can thus generate significant issues during their transfer.

Tax Regime for Real Estate Successions in Monaco

From a tax perspective, Monaco offers an attractive regime:

• Direct line (parents-children) or between spouses: 0%
• Between siblings: 8%
• Between uncles/aunts/nephews/nieces: 10%
• Between other collateral relatives or non-relatives: up to 16%

Real estate successions are therefore largely exempt or lightly taxed for close family transfers. Properties located on Monegasque territory are subject exclusively to local inheritance taxes, regardless of the deceased’s or heirs’ place of residence. However, it should be noted that for certain movable assets held by a French national deceased in Monaco, there is a strict condition: having resided in Monaco for at least five years before death to avoid potential application of French tax law on these assets.

Differences Between Residents and Non-Residents

Status	Applicable Law	Taxation on Real Estate Located in Monaco
Monegasque Resident	Unified Monegasque law (since 2017)	Local inheritance taxes only
Non-Resident/Foreign Deceased	Determining effective domicile; potential international convention	Local taxes if property located in Monaco

Steps of a Real Estate Succession in Monaco

• Mandatory appointment of a notary.
• Establishment of a notarial certificate confirming heir status.
• Official valuation of assets comprising the estate.
• Distribution certificates issued to legitimate heirs.
• Distribution compliant with legal shares protected by the hereditary reserve.

Summary List of Steps

• Official opening after death
• Notarial designation
• Legal confirmation of heir status
• Precise inventory and asset valuation
• Possible payment of due tax duties
• Effective transfer according to legal rules

Recent examples illustrate several challenges:

“With the increasing arrival of foreign investors holding multiple nationalities or having lived in different countries before settling in the Principality, succession situations sometimes become complex regarding the combined—or even competing—application of several national legal regimes. Some families have fully benefited from the zero rate on real estate transferred between direct relatives despite substantial assets; conversely, some disputes arise when proof of actual domicile is not established with certainty at the time of death.”

This context creates as many major tax opportunities as technical risks, particularly for those with significant international stakes involving properties located in the Principality.

How to Inherit Real Estate in Monaco

The legal conditions for inheriting real estate in Monaco are primarily based on Monegasque law, which applies exclusively to properties located within the Principality’s territory, regardless of the deceased’s or heirs’ residence or nationality.

Applicable Legislation

Real estate properties located in Monaco are subject solely to Monegasque inheritance taxes. This means international successions must respect bilateral conventions between Monaco and other states (notably France), according to which real property is taxed only in the state where it is located.

Furthermore, in matters of succession, Monaco protects certain direct heirs through a hereditary reserve ensuring they cannot be completely disinherited. This protection mainly concerns children and is provided for in the Monegasque Civil Code (Articles 780 and following).

Rights of Direct Heirs

Surviving spouses and direct descendants benefit from total exemption from inheritance tax on real estate in Monaco. For other categories: civil union partners (4%), siblings (8%), uncles/aunts/nieces/nephews (10%), and unrelated beneficiaries up to 16%.

Administrative Procedures Upon Opening a Succession

The procedure begins with the mandatory involvement of a local notary who establishes a notarial certificate confirming heir status. This document then allows obtaining the necessary distribution certificates to legally justify the right to inherit.

Main steps include:

Step	Description
Death Declaration	To be made with competent authorities in Monaco
Official Opening	Succession opened at deceased’s domicile or according to territorial jurisdiction
Notarial Involvement	Appointment of a specialized Monegasque notary to establish notarial certificate
File Preparation	Provision of supporting documents: death certificate, property title, possible will, etc.
Certificate Obtainment	Distribution certificates issued by notary to heirs

Generally Required Documents:

• Death certificate
• Property title(s)
• Documents proving family relationship with deceased
• Will if existing
• Marriage certificate or PACS if applicable

These documents are essential to officially initiate the succession transfer.

Specific Will Drafting

It is strongly recommended that anyone wishing to organize their real estate succession in Monaco draft a will compliant with local law to avoid any subsequent disputes. Indeed, only a will respecting Monegasque legal rules will be fully valid before its courts.

Essential Role of Local Specialized Notary

Using a notary based in Monaco greatly facilitates all these procedures thanks to their in-depth knowledge of local legal and tax specificities as well as their direct access to necessary registers. They also play a central role in tax optimization during asset transfer.

Inheritance Taxes for Foreigners in Monaco

Monegasque inheritance laws are defined by Articles 602 to 760 of the Civil Code. They are characterized by differentiated application depending on the nature of assets:

• Real estate located in Monaco: systematically subject to Monegasque law, even if owned by a foreigner.
• Movable assets (bank accounts, securities, personal items): governed by the deceased’s national law.

Since the recent reform, it is now possible for any person (including resident foreigners) to choose in their will that their succession be governed by the law of their nationality rather than that of Monaco. This option is particularly appreciated by families from common law countries wishing to avoid strict application of reserved heir rights imposed on descendants in the Monegasque civil law system.

Heir Type	Tax Rate on Succession Share
Direct Descendants	0%
Siblings	8%
Uncles/Aunts/Nephews/Nieces	10%
Distant Relatives	13%
Unrelated Persons	16%

Note:

• These rates apply without distinction between foreign and local heirs for properties located in Monaco.
• In case of inheritance shared between foreign and Monegasque co-heirs, a mechanism allows local heirs to deduct a value equivalent to assets located abroad from which they would be excluded under foreign local law.

Administrative and Legal Procedures for Foreigners:

• Filing death certificate with the Court of First Instance.
• Possible establishment of a notarial act if the deceased left a will or if the succession composition is complex.
• Inventory of concerned real and movable properties.
• Payment of due taxes before effective asset transfer.

Concrete Examples of Tax Adjustments:

If the beneficiary can prove that equivalent tax has been paid in another country on all or part of received assets, some bilateral conventions sometimes allow avoiding double taxation or provide for a tax credit under specific conditions.

International Conventions That May Influence Successions:

Monaco has not signed many bilateral agreements specifically relating to inheritance taxes but applies certain tax conventions that can limit double taxation in specific cases depending on the concerned country.

European nationals should note that EU Regulation No. 650/2012 does not directly apply to Monaco but may have indirect impact during cross-border processing with Member States applying this regulation.

To ensure succession optimization, it is highly recommended that foreigners with significant assets in the Principality—particularly real estate—consult specialized counsel to judiciously articulate their will with their international personal situation.

The Role of the Notary in an International Succession in Monaco

Notaries in Monaco must possess specific skills in private international law, particularly the ability to recognize, interpret, and apply foreign laws in the context of an international succession. This expertise is indispensable as the Principality attracts an international clientele whose assets are often composed of properties located in multiple countries.

Required Competencies:

• Mastery of the Monegasque private international law code, which provides for application of a single law to the entire succession (that of the deceased’s last domicile) or, upon express choice (professio juris), that of the testator’s nationality.
• Ability to verify content and effects of foreign laws that may apply to various asset components.
• In-depth knowledge of foreign succession mechanisms (e.g., limited or non-existent recognition of certain acts such as spousal gifts or pacts on future succession).

Inter-Jurisdictional Facilitation:

• Notaries regularly collaborate with legal and tax correspondents located in various countries to obtain exact interpretation of applicable legislations.
• They ensure coordination between Monegasque and foreign administrations to guarantee each step respects local and international legal requirements.

Concrete Example:

Situation	Notary’s Actions
Real Estate in France	Ensures act respects both French and Monegasque law; solicits French notary for local registration.
Bank Accounts in Switzerland	Requests succession certificate compliant with Swiss law; verifies if European Certificate of Succession is necessary.
Heirs Residing in United Kingdom	Informs about British tax implications; adapts distribution according to applicable tax regime.

Specific Challenges:

• Simultaneous management of different procedures (tax declaration in France, civil distribution in Monaco).
• Anticipation or resolution of potential conflicts of law concerning hereditary reserve or public policy.
• Consideration that certain measures recognized in Monaco do not always produce their effects in all concerned states.

International Tax Issues:

• The Monegasque code does not directly regulate tax aspects: thus all tax consequences specific to involved jurisdictions must be anticipated (different transfer taxes according to each state).
• Some tools used to optimize tax transmission may be ineffective outside Monaco.

Protection of Heirs Residing Abroad:

The notary’s central role also consists of legally and materially securing individual rights of non-resident heirs, both through precise information about their respective rights and ensuring their equitable representation during succession settlement.

In Summary:

• Sharp technical competence, strong international network, and constant adaptation are essential to enable the Monegasque notary to effectively accompany international clients while ensuring regulatory compliance, legal security, and cross-border asset optimization.