Monaco SCI

SCIs in Monaco: Why are they interesting?

The project of an SCI in Monaco represents undeniable advantages in the management of your assets, especially in terms of inheritance tax. Discover our file to create a Real Estate Civil Company in Monaco.

 

What is an SCI in Monaco?

Basic principles of the Monegasque SCI

An SCI is a Real Estate Civil Company whose purpose consists in carrying out civil operations such as the management of real estate assets. It has the ability to buy real estate and put it under management. However, these properties must not be rented in furnished. Moreover, it may not carry on activities specific to merchants of goods. If it wanted to trade in real estate, it would have to evolve towards the legal form of the Limited Liability Company: SARL.

 

Operating procedures

To exist legally, this type of company must meet the following requirements:

  • It consists of at least two partners, with the status of natural persons or legal persons enjoying legal personality.
  • The partners have unlimited and non-joint and several liability.
  • A manager is appointed from the group of partners.
  • No minimum share capital is predefined.
  • The nationality of the partners is not necessarily Monegasque nor the place of residence

In the event of a debt, the liability of the partners is subsidiary. That is to say, a partner will not be able to settle the share of a debt of another partner. Each of them is obliged to settle the debts of the Company according to the number of shares he owns within the share capital.

 

The Monegasque legislative framework

For the operation of a Real Estate Civil Company, the legislative framework is as follows:

  • Articles 1670 to 1711 of the Civil Code
  • Law No. 797 of 18 February 1966 on Civil Societies
  • Law no. 1,385 dated December 15, 2011
  • Ministerial Order 2012-182 of 5 April 2012, pursuant to Law No. 1,385

 

What are the advantages of an SCI in Monaco?

It is advantageous for partners to set up as a Real Estate Civil Company in order to invest in offices, business premises or housing on the territory of the Principality. Indeed, the price per square meter in Monaco continues to grow: + 70% over 10 years. It is a very popular place for real estate investors. In question, the flamboyant setting of the place, but also the dynamism of the sector. Even if goods are scarce, the market remains constantly evolving to adapt to growing demands.

The second advantage is Monaco's tax policy. In direct filiation, the SCI offers the advantage of a rate applicable to 0% in case of legacy. The other rates applicable to inheritance or transfer vary between 8 and 16 per cent depending on the relationship between the deceased and his heir. Overall, taxation is more interesting in the Principality. To learn more, you can read our article on tax in Monaco.

As we will discuss below, tenants and the general public only have access to information relating to the location of the Société Civile Immobilière. The anonymity of the partners is preserved on Monegasque soil.

 

Agreements between the two States (France and Monaco)

1950 Convention

These tax advantages in relation to the settlement of successions come from an agreement signed between the France and Monaco on 1 April 1950.

 

Judgment of the Court of Cassation of 2 October 2015

In a judgment dated 2 October 2015, the Court of Cassation decreed that the shares of Monegasque companies, owners of buildings in France, whose owners are Monegasque residents who died in France and whose heirs are residents French cannot be taxed according to the duties applicable within France.

This judgment of the Court of Cassation thus benefits all residents of different nationalities according to the principle of non-discrimination. However, there is a reservation. The deceased must have been a resident of the Principality for at least five years.

 

Order of the French Council of State of 11 June 2003

A decree of the French Council of State dated 11 June 2003 allows persons residing in Monaco and whose nationality is neither French nor Monegasque not to be subject to flat-rate taxation.

 

Advantages in all cases

These principles nevertheless remain subject to each tax treaty concluded between the France and the State of the Monegasque resident's nationality. In the event that the said tax treaty is not advantageous for the resident, it remains profitable for the latter to own a property in France through a Monegasque Real Estate Company.

 

Why create an SCI rather than owning a property?

Creating an SCI is interesting when it comes to a real estate purchase project between several people. This legal form makes it possible to overcome the difficulties that could be linked to a joint real estate purchase.

The manager is able to make decisions even if disagreements exist between the partners. It will therefore be able to continue to operate despite these inconveniences. Nevertheless, it is essential to properly define the decision-making powers of the managing partner. Poor management would imply the responsibility of all partners.

This is still a very good option when you want to ensure an estate with several beneficiaries. The bequeathed property that is linked to this type of Company may not undergo any joint inheritance. The legatee thus avoids the pitfalls that could result from a legacy. In our case, the shares held by the partner are the object of the bequest and not the real estate.

 

What are the formalities for investing in an SCI?

The drafting of the statutes of the Société Civile Immobilière

Before creating a Real Estate Civil Company, it is necessary to draft the statutes that embody the bases of its operation. They may be drawn up either by notarial deed or by private deed. Future partners enjoy a certain freedom in the drafting of these statutes. Some essential data must be included:

  • Majority rules for voting in assemblies
  • The limits of the manager's mandate
  • The rules to be applied when selling or exchanging shares
  • Approvals in case of entry or exit within the Company

All partners are obliged to sign these statutes which must be registered within one month in private signature and under fortnight under deed before a notary of Monaco. After registration, it will be necessary to pay to the Trade and Industry Register fees in connection with their file:

  • A total sum of 65 €
  • 5 € per certificate of registration

When the SCI is thus created, it must be registered in the Special Directory of Civil Societies within two months.

 

Accounting management

During its financial year, all accounting operations must be recorded in a file showing the statement of revenue and expenditure. This must be kept at the address of the registered office, together with any other supporting document. Five-year bank account statements will also need to be archived there. The Monegasque authorities must be able to consult freely the various documents in this accounting file.

 

Petrini Exclusive accompanies you in your project in Monaco

Our Monaco Real Estate Agency works daily with Monegasque consulting firms and can help you choose the right formula. Each situation is unique it is for this raion that we invite you to contact us so that we can give you the best advice for the constitution of your new SCI. We accompany you in all your stages of purchase of goods in the Principality of Monaco. Our team is at your disposal. We have developed an extensive network of local and international relationships thanks to , which benefit our customers. Our customers deserve personalized service and exclusive attention.

These articles might interest you

074a6701 2
Real Estate Prices

Real estate prices in Monaco Monaco, located between France and Italy, offers an impressive real estate portfolio with very attractive m2 Monaco prices. Very dynamic, this sector records a constant increase in living space. Indeed, the numerous current and future projects guarantee a stable and prosperous real estate market.

copie de copie de copie de copie de copie de blue cyan 3d minimalist business blog banner 19
The list of the different banks in Monaco - Petrini

Why is it essential to know the financial institutions in Monaco before moving there? Before moving to Monaco, it is crucial to familiarize yourself with the list of different banks in Monaco. Understanding the different banks and their services will help you make informed decisions regarding your financial requirements and needs. Whether you are an individual or a company, knowing the options available to you will ensure you choose the right banking partner to meet your specific needs.

36
The notaries of Monaco

The notary in Monaco is a public and ministerial officer responsible for the development, authentication, registration and conservation of legal acts having the force of law. The legislation of the Principality of Monaco authorizes him to be replaced in his functions and consulting services by an assistant or a clerk of his office.

074a5061
Invest or create a company in Monaco

Choosing between investing or setting up a company in Monaco :The Principality of Monaco is a unique place in the world to start your economic activity through the creation of a company. Discover the advantages of setting up your business in one of the most beautiful financial centers in the world, which also attracts many investors. We invite you to explore the different types of companies in Monaco as well as the key information to create your business.

These properties might interest you

chambre bis moyen

2 630 000 €

One-bedroom apartment in the fontvieille district in the "Le Donatello" residence. This product is ideal for mixed use. The condominium fees include air conditioning, heating and water consumption.

Co-exclusive
petrini exclusive appartement vente margaret2

3 490 000 €

Discover this 3-room office completely renovated for mixed use, located in a luxury building with security service. With a total area of 82 square meters, it offers an entrance hall, a large living/dining room, an equipped kitchen, a bedroom, an office, a dressing room, a bathroom and a balcony of 10m² facing south with views of the city.

capture d ecran 2023 10 03 114452

11 000 000 €

In the Patio Palace residence, in the quiet Jardin Exotique district, discover this 3 bedroom apartment with a breathtaking view of the Principality. Three friendly bedrooms and airy living spaces invite you to a unique experience in the heart of Monaco!

boulevard de moulins monte carlo lacosta hd scaled 1682067877

700 000 €

Discover this charming boutique on two levels, located on the Boulevard des Moulins. With its showroom on the ground floor, a welcoming mezzanine and an attractive shop window, this space of 37 m2 total is ideal for an art or jewellery shop.

petrini exclusive le meridien 4p monaco monte carlo fontvieille10

7 950 000 €

Discover a magnificent furnished four-room apartment (3 bedrooms) for sale in the famous Fontvielle district. Located in the residence "Le Méridien" in Monaco, designed by the renowned architect Alexandre Giraldi, the apartment enjoys exclusive services such as a dedicated concierge and two underground parking lots in the building. The exceptional location in one of the most sought after districts will give you immediate access to the shops, the port of Fontvieille and the attractions of the city,

botticelli vente 4p petrini exclusive real estate moanco4

Price on request

Discover the exclusivity of the Le Botticelli residence, nestled in the heart of the peaceful district of Fontvieille. This fully furnished 3 bedroom apartment offers a unique living experience, with stunning views of the port and the Mediterranean Sea.

capture d ecran 2023 11 09 151004

2 550 000 €

Charming 1 bedroom apartment under renovation, ideally located in the shopping district of La Condamine, a few minutes from the Port of Monaco.

dsc0279

2 350 000 €

The Monte Carlo Star, a prestigious residence in the Principality, houses a charming studio enjoying absolute calm, a few steps from the Casino and the Port of Hercules. This exceptional property is sold with a large parking space for optimal accessibility. Residents can also enjoy a year-round indoor pool, adding a touch of relaxation and refinement.

capture d ecran 2023 10 20 143817

18 500 000 €

Discover this exceptional property in the "Carré d'Or" Monaco. This 4-bedroom apartment in Prince de Galles offers views of the sea and the city from its spacious terraces. Thanks to its sophisticated layout and top-of-the-range services, this property embodies Monégasque elegance in all its splendor. To learn more about this unique opportunity, contact us now.

ok3

3 940 000 €

We are delighted to present you a real estate jewel for sale, located in the prestigious district of Fontvieille in Monaco, within the popular residence "Le Grand Large". This two-room apartment, completely renovated with high-end materials, offers a luxurious and refined living environment, with a surface area of 62 m². Every detail has been designed to combine elegance, comfort and functionality.

capture d ecran 2023 10 02 111349

4 950 000 €

Discover this splendid furnished one bedroom apartment at Le Méridien Monaco, a residence designed by the famous architect Alexandre Giraldi. Enjoy an exceptional living environment with immediate access to shops, the port of Fontvieille and the city's attractions, while enjoying exclusive services such as a dedicated concierge service and underground parking.

petrini exclusive monaco monte carlo13

190 000 €

One Monte Carlo stands out as an exceptional residential complex located in the heart of the Carré d'Or, offering an incomparable level of luxury. In addition to its privileged location in the immediate vicinity of the Grand Casino de Monte Carlo, it offers a full range of high-end services for its residents. These include a 24-hour concierge and valet service, as well as exclusive access to the Thermes Marins' pool and fitness room.

Port Monaco

Subscribe to our newsletter and discover our
exclusive Off Market properties.

Language :
Interested in :
(* : Required information)