The Principality is an independent sovereign state established in 1297, with a population of about 38,500 residents, and it is a full member of the United Nations.
Indeed Monaco has a lot going in its favor; the winters are mild, the summers are warm, the food is incredible, and there is a marina full of yachts and a coast lined up with luxurious residences!
It’s also one of the safest countries in the world, with practically zero crime, excellent school systems, well-established transportation avenues, and a thriving economy.
Add to that the fact that Nice Cote d’Azur Airport is just a 30-minute drive away; being a perfect base for travelling throughout Europe and the rest of the world.
It is no wonder that Monaco has long been a playground of the ultra-rich and one of the wealthiest countries in the world!
However, it is not just the spectacular setting that draws the rich to the shores of Monaco!
In fact, with exceptional political stability alongside close economic and financial relations with France, Monaco’s competitive banking and taxation systems provide a wealth of opportunity for the ultra-high net worth individuals.
Most importantly, the country’s tax policies have ensured that Monaco is the preferred destination for foreign investors to relocate their wealth and their families.
The most evident advantages over other competitor jurisdictions as follows:
(i) income tax for resident individuals is 0% and no requirement exists to prepare or submit tax returns nor to disclose worldwide income or assets;
(ii) corporate tax rate is 33.33%, however after various allowable deductions, the resulting figure ends up to an effective corporate tax rate under 6%.
(iii) directors’ fees paid to resident directors are free of income tax;
(iv) there is no capital gains nor wealth tax for non-French resident individuals;
(vi) there is no inheritance tax on Monaco based assets when the estate is divested to the husband, wife or children;
(vii) the residency application procedure is relatively straightforward;
(viii) no requirement exists to purchase property in Monaco nor is there a minimum property rental charge payable.
