A significant share of high-end acquisitions in Monaco are made through a Société Civile Immobilière (SCI) rather than in a buyer's own name. This is not an incidental choice: it answers real needs around confidentiality, wealth transmission and joint management, particularly relevant for an international clientele. Here is how a Monaco SCI actually works, and when it makes sense.
What a Monaco SCI is
An SCI is a legal structure that allows several people, individuals or entities, to jointly hold and manage one or more properties. In Monaco, setting one up requires no prior authorisation from the authorities, unlike commercial companies: it falls under articles 1670 to 1711 of the Monaco Civil Code, and its formation is notably simpler than in many other jurisdictions.
Conditions for setting one up
A Monaco SCI must have at least two shareholders, with no nationality or residence requirement: a foreign investor can take part in its formation without any geographic restriction. The law sets no minimum share capital, and the articles of association can be drafted freely, whether signed before a notary or as a private deed. Shareholders can, for instance, limit the manager's powers or set specific terms for the transfer of shares. Once drafted, the articles must be filed with the relevant Monaco authorities.
The practical advantages
Confidentiality is the argument most often raised, and it holds up: unlike a French SCI, information on the shareholders of a Monaco SCI is not publicly accessible, except on official request from a competent authority such as the French tax administration.
Wealth transmission is also made easier. Holding a property through an SCI means transferring shares rather than the physical property itself, which avoids the heavier process of a sale or restructuring at the time of succession, and can be organised according to the owner's wishes during their lifetime.
Joint management also becomes simpler. For a purchase made among family members or several investors, an SCI avoids the deadlocks typical of co-ownership, where every decision requires unanimous agreement. The SCI's articles of association set out the decision-making rules and the distribution of costs among shareholders in advance.
The applicable tax treatment
For a resale property bought by a Monaco SCI, registration duties amount to 4.75% of the price, the same rate as for a purchase made in an individual's own name. This is worth distinguishing clearly from a purchase through a non-transparent foreign company, which faces a considerably heavier tax burden. A Monaco SCI, by contrast, is recognised as a transparent structure by the authorities, which explains its favourable treatment.
Costs to plan for
Setting up a Monaco SCI typically costs between €2,000 and €4,000, including notary or legal fees. Annual accounting is also mandatory, generally running between €1,500 and €4,000 a year depending on the complexity of the assets held. It is also worth bearing in mind that shareholder liability remains unlimited, even though it is not joint: each shareholder answers for debts in proportion to their share in the company, but not for those of the other shareholders.
How we help
The choice between buying in your own name or through an SCI depends on your personal wealth situation, the number of buyers involved, and your transmission objectives. Our team connects you with specialised Monaco notaries and lawyers to structure your acquisition under the best possible conditions. Considering a joint purchase or a wealth transmission strategy in Monaco? Let's discuss it together.
