Monaco (aka. Monte Carlo) is the second smallest country in the world in the french riviera after Vatican. Monaco is the richest country has the world’s second-highest GDP nominal per capita at US$153,177. The country has highest number of millionaires and billionaires per capita in the world, infact 30% of the country population was made up of millionaires. Monaco’s mild climate, scenery, and gambling facilities have contributed to the principality’s status as a tourist destination and recreation centre for the rich. In more recent years, Monaco has become a major banking centre and has sought to diversify its economy into the services sector and small, high-value-added, non-polluting industries.
The principality of Monaco state has no income tax, low business taxes, and is well known for being a tax haven. Monaco is not formally a part of the European Union (EU), but it participates in certain EU policies, including customs and border controls. Through its relationship with France, Monaco uses the euro as its sole currency. Monaco has never levied income tax on individuals, and foreigners are thus able to use it as a “tax haven” from their own country’s taxes, because as an independent country, Monaco is not obligated to pay taxes to other countries. The absence of a personal income tax in the principality has attracted to it a considerable number of wealthy “tax refugee” residents from European countries who derive the majority of their income from activity outside Monaco.
Monaco is not a member of European Union, Schengen and EU directives and measures do not apply in Monaco but gets benefits through France. There is no airport in Monaco, travellers must arrive through nearest airport is Nice, France. Residency in Monaco is in demand by wealthy families.
- Monaco is perfect for UHNW investors worldwide
- High confidentiality with multicultural and stable society
- Close proximity to French cities, Cannes, and Nice in the French riviera
- Excellent high standards of living,
- A very stable real estate market that offers significant opportunities to investors or to resident property dealers.
- High quality of sports, cultural, and education facilities.
- Low tax country in Europe.
To become resident in Monaco, one must be able to show sufficient means of investment to be able to afford the lifestyle, in particular, the rent and prices for real estate, which are comparable to big capital cities.
To qualify for residency, clients must invest the minimum investment required atleast
- Business – EUR 1 million in Companies (or)
- Bank Deposit + Property – EUR 1 million of which EUR 500,000 is needed to be deposited in a Monaco Bank, in addition to purchasing of sale deed of property worth EUR 500,000.
The property prices start from EUR 500,000 and upwards as the real estate has been in high demand. Accommodations are very expensive as a renting a small flat could cost a minimum of EUR 3,000 and above. In addition to that you have to spend atleast 6 months in a year. The residence permit takes about 1 month for EU nationals and about 3 months for non-EU nationals. A personal interview is a must to obtain Monaco residency. A long-stay visa (type D) for Monaco through the French Consulate closest to your most recent place of residence .
The main eligibility criteria to obtain residence permit are
- Proof of sufficient bank balance accompanied by bank reference.
- Proof for accommodation (rental lease contract or sale deed)
- Rent or owner of a house or apartment;
- Clean criminal police record record.(“Good character”).
- Work or business incorporation documents.
Once an application for a residence permit has been submitted, a “temporary” card valid for one year may be issued, for which there are no particular length of residency requirements. If you leave Monaco, you must surrender your residence permit.
The Residents Authority of the Government may request supporting documents proving, if you are.
- self-employed, or the manager or director of a company in Monaco or the surrounding area
- setting up a business in Monaco
- an employee in Monaco
- supported by someone else
- all other cases
Good character requirement: Prove by supplying a copy of your criminal records information or equivalent (“Certificato penale” + “Certificato dei carichi pendenti” in Italy, “Führungszeugnis” in Germany, “Copy of Police Records” in the United Kingdom, “FBI Background Check” in the United States, etc.), issued by the authorities of the last country or two countries in which you have resided in the five years prior to your arrival in Monaco.
The Monaco real estate market remains the most expensive in the world, averaging $50-100K per meter around the Golden square. The most prestigious area is the Carre D’Or” (Golden square) around the Place Du Casino. . This means for $1 million you would get only 10 square metre luxury property in Monaco. The property costs range from the lowest price per sq. metre for properties is 21,875 €, the average price 55,435 €, and the highest 115,385 € depending on the area..
You can expect the property registration costs as follows.
- Registration and notary’s fees are 4.5% of the selling price.
- Agent’s fee is typically 3% + VAT of the selling price.
- Deposit of 10% of the selling price is paid to reserve the property
- Lawyer fee to do background check. (2%-4%)
The rate of taxation for VAT is 20 % for property transactions.
Monaco levies no personal income tax, no wealth tax, no local tax, no property tax, and no capital gains tax on individuals. Corporate tax and inheritance tax are minimal in comparison to other countries.
After five years of living in the country
To be eligible for Monégasque citizenship, foreigners must live legally in Monaco for 10 years.
The Monégasque passport is issued to citizens of Monaco for international travel. In 2009 there were an estimated 6,000 passports in circulation. The Monegasque passport is one the rare and exclusive passports in the world, ranking 14th best in terms of world powerful passport rankings with visa free travel to 174 countries (US, UK, Canada, Europe etc)