A conference was held at the Fairmont Hotel on Wednesday, October 20.
It was during the third breakfast conference of the Junior Economic Chamber of Monaco that Alain Vivalda, President of the Monegasque Real Estate Chamber, and Stéphane Valeri, President of the National Council, drafted Bill 252 relating to the regulation the profession of property dealers in the Principality.
This bill has already been adopted by the National Council on May 10, but the Prince’s Government will have to vote on it no later than November 17.
Better supervise the profession of property dealers
We don’t understand opportunity merchants
150 real estate agencies in Monaco, 317 real estate dealers in 2021, compared to ten ten years ago, and 428 sales on average made each year. It is by these numbers, ” who speak for themselves and who see the existing problem »That Alain Vivalda introduced his argument.
For the President of the Monegasque Real Estate Chamber, the problem is not only the number of professionals authorized to practice in the Principality, but their qualities and skills: “ We believe that this profession of property merchant becomes a professional profession. We are not saying fake goods dealers who are only there to speculate, without revaluing the good. We are not releasing opportunity traders who use the advantageous system to legally benefit from a low surplus value. ”
Comments corroborated by Stéphane Valeri: ” It is unhealthy to let people not pay transfer taxes, not make real estate agencies work and always sell and resell a property that is not transformed. ”
This practice, based solely on speculative bubbles, is both harmful for the profession, for the sector and for the Principality, according to Alain Vivalda. The President of the Chamber however wished to greet the merchants of goods present in the real estate room, who contributed to the realization of works carried out by the local companies which marked the standing of the building and which avoid the works which are necessary. eternalize or the degradation of common areas.
20 million euros of losses per year
Reserved for Monegasques since January 2020, the profession of property dealer must also be regulated to guarantee fairness between professionals. Among the current advantages of the profession: exemption from VAT (under conditions), exemption from transfer taxes (if the property is returned before four years) and the absence of a minimum amount required for the work.
The President of the National Council recalled that there was in fact a legal vacuum, from which too many opportunists took advantage, in order to benefit from these advantages. According to Stéphane Valeri, the tax losses linked to these abuses are estimated at 20 million euros per year. The National Council therefore voted on a text proposing the modification of the tax regime for property dealers.
If the text is adopted, professionals will have to restructure the property up to at least 5%, within five years. Those will pay 2.25% registration fees, against 5% for those who do not deal with this clause. Property dealers who call on Monegasque companies will also benefit from VAT exemption on their work for the next acquisition to be transformed.
The Prince’s Government must now decide. If the bill is validated, it should enter into force no later than spring 2023.
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