Registration fees payable on transfers of property assets and rights
The Department of Tax Services would like to draw attention to the briefing note concerning the introduction of Act no. 1.381 of 19 June 2011 on registration fees payable on transfers of property and property duties published in the Journal de Monaco on 1 July 2011, which redefines the rules relating to registration fees payable on transfers of property assets and rights.
In view of the questions which may arise from those concerned as a result of the publication of these new provisions, the Government has provided for the measures and steps set out below to be put in place. Those liable for the new fees can make use of these provisions, both for handling ongoing business during the transition period, and to assess individual situations.
Ongoing business during transition period (1)
For a period of two months from the entry into force of the law, transactions covered by the law which would have been concluded prior to this date but which would not have been subject to the registration procedure may continue to benefit from the registration fees in place prior to this law if they are more favourable.
Subject to respect for the spirit of the law, and to confirmation of full transparency and that there is no intention to evade the payment of transfer fees to the detriment of the acknowledged interest of the Monégasque Treasury, the Department of Tax Services has been instructed to apply the provisions of the law in an enlightened and measured way when conducting preliminary assessments of individual situations which those concerned are invited to submit to the Department.
While the list of such situations which has so far complied is by no means exhaustive, the benefit of the provisions outlined above may be applicable, in particular, in the following cases:
- In the determination of the basis for the assessment of registration fees in the event of transfer of a minority of shares in Monégasque sociétés anonymes which hold real rights to property assets located in the Principality
- In the reorganisation or restructuring of real estate holdings within the same family as well as in any other situation likely to result in an accumulation of taxes
- In the transfer of shares or any other transactions involving the capital of Monégasque commercial or industrial companies where the property assets or rights are directly linked to the company’s operations in Monaco.
In order that a decision can be made on their application as quickly as possible, those affected are invited to formally submit a clear and detailed account of their situation, accompanied by the necessary evidence to confirm the validity of their case.
Once a case has been examined by the Department of Tax Services, it will be sent to the Ministry of Finance and Economy for approval.
Finally, as a point of clarification concerning the requirement to provide the mortgage office with a copy of the details of any change in company head office, only a special extract containing solely a note of the new head office will be copied into the Registry of Mortgages.
(1) Individual situations which cannot be handled in the time period outlined may exceptionally be submitted to the Department of Tax Services by 30 September 2011 at the latest.