Monaco SCI: A Key Tool
for Structuring Real Estate Assets in Monaco

In Monaco, purchasing real estate is often part of a long-term wealth management strategy. For families and investors seeking to acquire, manage or transfer a property jointly, a Monaco real estate civil company, known as an SCI, offers a particularly suitable solution.

What is a Monegasque SCI?

A Monegasque SCI is a civil company established by at least two partners. It may own, manage and rent out real estate as part of a non-commercial activity. The property is owned by the company, while the partners hold shares in proportion to their respective interests. As a general rule, this structure is not suitable for commercial activities, such as the habitual purchase and resale of property or certain types of furnished rental activity.

Why set up an SCI in Monaco?

An SCI helps avoid the constraints associated with joint ownership. Its articles of association define the manager’s powers, the applicable majority rules and the conditions governing the transfer of shares. The management of the property therefore remains structured, even when the partners live in different countries or belong to different generations.

An SCI also facilitates the transfer of real estate assets. Rather than directly dividing an apartment or villa, the heirs receive shares in the company. This arrangement can simplify the distribution of the estate and ensure continuity in the management of the property.

The articles of association make it possible to anticipate the main situations that may give rise to disputes, including: the death of a partner; the admission of a new partner; the transfer of shares; the financing of renovation or maintenance work; disagreements concerning the management or sale of the property. The quality of the articles of association is therefore crucial. “A Monegasque SCI is not merely a tax-planning vehicle. Its primary purpose is to structure the ownership and transfer of real estate assets across several generations.”

How to set up an SCI in Monaco? 

The creation of a Monegasque SCI is based, in particular, on the following requirements: at least two partners; the appointment of a manager; the drafting of the articles of association; the registration of the company; its entry in the Special Register of Civil Companies. The articles of association must be tailored to the partners’ specific project. In particular, they define the manager’s powers, the decision-making rules, the conditions governing the transfer of shares and the procedures for a partner’s withdrawal from the company.

What are the obligations of an SCI?

A Monegasque SCI must comply with several administrative and reporting obligations. In particular, it must maintain accounting records, declare its beneficial owners and confirm each year that it is continuing its activities. The confidentiality of the partners is regulated: certain information is not freely accessible to the public, but it may be disclosed to the competent authorities and authorised professionals.

What is the tax regime for a Monegasque SCI?

Tax treatment depends on the circumstances of each company, including: the location of the property; the tax residence of the partners;  the nationality of the partners; the income received; the arrangements for transferring or reselling the property; the applicable tax treaties. When a Monegasque SCI owns a property located in France, it may also be subject to French reporting obligations, particularly in relation to the annual 3% tax on the market value of real estate. Setting up an SCI is therefore not an automatic tax solution. A tailored legal and tax analysis remains essential.

Monegasque SCI and inheritance

Holding a property through an SCI may offer advantages for inheritance planning, since the transfer concerns shares in the company rather than the property itself. In certain international situations, particularly when the property is located in France, tax treaties may play an important role. Their application nevertheless depends on numerous criteria, including the deceased’s domicile and nationality, as well as the legal nature of the company. Each situation should therefore be reviewed by a qualified notary or tax lawyer.

When is an SCI appropriate?

A Monegasque SCI is particularly suitable when: several people acquire a property together; the assets are intended to remain within the family; the transfer of ownership must be organised across several generations; the partners wish to define clear management rules; the investment forms part of a long-term strategy. It may be less appropriate for a straightforward acquisition by a single person, a short-term resale project or an activity of a commercial nature.

A wealth-planning tool that requires careful preparation

A Monegasque SCI provides a structured framework for acquiring, managing and transferring real estate assets in Monaco. Its effectiveness, however, depends on a clear strategy, carefully drafted articles of association and appropriate legal and tax advice. PIRAS Immobilier assists buyers in their search for properties in Monaco and facilitates coordination with the notaries, lawyers and wealth-management advisers involved in structuring their projects.