Beautiful Monaco, nestled on the edge of the Mediterranean, is a lot more than just a holiday destination for many Europeans. It’s also a popular target for permanent relocation thanks to its financial situation. The city-state of Monaco has some impressive financial credentials: It has the lowest poverty rate in the world, the highest GDP per capita, and a truly outrageous proportion of millionaires and billionaires. The standard of living in Monaco is extremely high and has been for decades.
What are the financial attractions that make Monaco a haven for the wealthy? These are the key draws:
* No Income Tax
Citizens of Monaco enjoy the world’s lowest tax bracket, ensuring that more (in fact, all) of their take-home pay is theirs to do with as they please. The city-state’s unemployment rate is an astonishing zero percent, so this tax policy affects every citizen in a positive way. Income is considerably above European averages, so most residents are enjoying very healthy compensation.
* No Tax On Capital Gains
Residents of Monaco do not pay capital gains tax. This is one of the factors driving the petite country’s property market to such heights. Property in Monaco is amongst the world’s most valuable, with the average square metre trading hands for an astonishing 65,600GBP.
* No Wealth Tax
Although the UK does not have a wealth tax itself, this form of taxation is increasingly common in continental Europe. Such taxes are imposed by France, the Netherlands, and Switzerland. This makes Monaco an attractive destination for relocation and asset transfer – rich French citizens are particularly enthusiastic about coming to Monaco for this purpose.
* No Inheritance Tax
One’s heirs pay no tax on estates in Monaco. Inheritance taxes can be vast in other European nations.
* Favorable Location
All of the continent’s major cultural and financial centers – Paris, London, and Zurich – are easily accessible from Monaco. It’s a convenient place from which to run a business, and it also features an extremely comfortable climate.
* Financial Security
Though Monaco’s personal financial restrictions are minimal, the rules and regulations applied to businesses and banks are much more thorough.
The strict regulations governing businesses and branches operating in Monaco don’t serve to drive off any companies. Those that choose to operate in Monaco enjoy very favorable business tax rates, more than making up for the regulatory complexities of the city-state.
Though Monaco is a member state of the European Union, becoming a resident takes considerably more than simply relocating to the city-state. Monaco has a vested interest in preserving and maintaining its high social and economic standards. That means the financial requirements and background checks are extremely thorough.
On the financial side, prospective residents are required to have a local bank account. Since minimum initial deposits at Monaco banks are generally on the order of 300,000GBP, this is not an insignificant bar to clear. Would-be residents also have to go through a criminal background check that needs to turn up a completely crime-free history for at least the last five years. Many individuals turn to the help of dedicated consulting companies for relocation to Monaco ( http://www.relocation-monaco.com ) to help them with all the details and paperwork.