Cost of Living in Monaco
Due to the wealthy status of Monaco, the cost of living in the country for foreign nationals is also deemed to be very high. However, it is also possible for expats to live in a normal, middle-class existence in Monaco. The prices of everyday goods and services are said to be almost at par with French cities such as Paris.
Buying Real Estate
The real estate market of Monaco is not only considered to be very stable but also one of the most expensive in the world. The price of property in the country increases by about 10% a year during the past decade. One of the main reasons for the sky-high prices of real estate in Monaco is the limited supply of property, attributed to the small land area of the country. The prime residential market in Monaco is located in Monte Carlo, which is home to the world-famous Place du Casino. Meanwhile, Carre D’Or and Larvotto are also prestigious areas of real estate for sale. The majority of the foreigners who invest in a property in Monaco are British and Russians.
Among the popular celebrities that have properties in Monte Carlo include Bono of the band U2, tennis player Novak Djokovic, F1 driver Lewis Hamilton, actor Roger Moore, and The Beatles drummer Ringo Starr.
The government of Monaco does not have any restrictions on foreign nationals who are interested in purchasing a property in Monaco. The total cost of buying and selling real estate in Monaco is said to be between 15.62% - 16.62%, which includes real estate agents’ fee of 8%, VAT of 20.6%, and real estate transfer tax of 4.5%.
Average property prices:
- Apartment in city centre - USD$58,700 - 62,000 per sqm
- Apartment outside city centre - USD$38,090 - 40,000 per sqm
Foreign nationals who are moving to Monaco and planning to rent an apartment are advised not to go during tourist season because the prices of accommodations go as much as three times the regular price. Those who are looking for rental apartments can search through advertisements in local newspapers or the Internet. If you are familiar with the renting process in Europe, there will be no need for real estate agents, but if it is your first time and you do not have sufficient knowledge of the French language, the assistance of a real estate agent is indispensable – although this will incur additional charges and fees. Rental accommodations in Monte Carlo are the most expensive, due to the area being a prime location.
For expats looking for a more budget-friendly apartment, the bordering towns of France are a great option. Some of these towns include Beausoleil, Cap d'Ail, Eze or Roquebrune Cap Martin. These French towns offer apartments that are more affordable than the ones in Monaco, without compromising quality.
Average rental prices:
- One-bedroom apartment city centre - USD$6,000 - 6,200 pcm
- One-bedroom apartment Outside city centre - USD$4,190 - 4,300 pcm
- Three-bedroom apartment city centre - USD$16,330 - 16,500 pcm
- Three-bedroom apartment Outside city centre - USD$11,500 - USD$12,000 pcm
The prices for utilities in Monaco can be quite high, however, it is deemed to be more affordable than other similar places in Europe, such as Andorra.
Average utility prices:
- Basic utilities (Water, Gas, Electricity, Heating, Garbage) - USD$280
- Internet (10Mbps DSL) - USD$45
- 1 minute prepaid mobile local call - USD$.024
Dining out in one of the fanciest city-states in the world can be very expensive, but that doesn't mean that there aren't other options for food in Monaco.
Average food prices:
- Meal for two in an inexpensive restaurant - USD$65
- Three-course meal for two in a mid-range restaurant - USD$110
- McDonalds combo meal (fast-food chain prices) - USD$10.35
- One litre of milk - USD$3.30
- One dozen eggs - USD$3.25
- One kilogramme of chicken breasts - USD$16.35
- One bottle of domestic beer - USD$4.05
- One bottle of imported beer - USD$4.20
- One bottle of mid-range wine - USD$14
The transport costs in Monaco are pretty average for transport prices in Europe. It costs roughly the same as France, and since it's quite a small city-state, it doesn't take much to get around.
Average transport costs:
- Taxi flag-down rate - USD$11
- Taxi rate every 1km - USD$2.20
- One litre of gasoline - USD$1.77
- Monthly public transport ticket - USD$31
- One-way local transport ticket - USD$2.20
Monaco is popular not only as a premier tourist destination but also as a tax haven. Workers in Monaco enjoy competitive salaries that are tax-free. The country has low business taxes, hence the strong influx of foreign investment. However, Monaco levies social insurance taxes from employers and employees, which is said to be quite high. The employee pays about 10%-14% of their gross salary to social security, while employers pay approximately 28%-40%. Other forms of taxes levied in Monaco are real estate tax, inheritance tax, and value-added tax (VAT) which is set at 20.6%.
Expat Services in Monaco
Don't miss our Expat Services in Monaco