Take your money to one of the most prosperous nations in the world.
Ready to branch out with your wealth? Investing in international economic hubs is one of the best ways an investor can see higher returns, diversify their portfolio, or even find a new home. With international investing, individuals take advantage of banking systems and markets that may not be available or advantageous in their home country.
Monaco is one destination that you should definitely be looking into. This country is small and exclusive. Many of the world’s wealthiest investors have taken advantage of the country’s tax perks as well as its residency by investment program.
Keep reading to find out why you should be investing your money in Monaco.
Why Choose Monaco?
Before we cover how you can invest in Monaco, let’s cover why you should be thinking about investing here, starting with the nation’s banking system.
The small nation of Monaco is regarded as one of the most expensive destinations in the world and offers a strong and extensive banking infrastructure. Nearly 70% of the assets in Monaco are from non-resident funds, proving how much wealthy investors trust the country’s banking system.
Monaco is home to a unique political and economic environment that can be great for banking and wealth management. Large private banks offer the usual cash counter, safety deposit box, direct deposit, and other usual banking services. Leading banks also offer investment services like multi-currency deposit accounts, equity and fixed income trading, precious metals, foreign exchange, and commodity trading platforms. Many also provide managed investment portfolio services.
The country offers nearly ninety banks, wealth managers, family offices, and financial advisors that manage almost 100 billion euro. All licensed banks and portfolio managers in the Principality of Monaco belong to the Monégasque Association of Financial Services, a member of the European Banking Federation. This means Monaco is in the Eurozone of the Single Euro Payments Area.
Monaco is a Low-Cost Jurisdiction?
There are only around 36,000 residents in Monaco. What this nation lacks in size makes up for in financial perks. The income tax hasn’t changed since 1869 which means that residents of Monaco get to keep all the money they earn, attracting some of the wealthiest residents. In fact, one in three residents of the principality is a millionaire.
Starting in 1870, Monaco does not levy personal income tax on residents. A resident is a person who lives in the nation for just over 6 months out of the year. This is a feasible location for wealthy individuals as it is easily accessible by plane, train, and boat, which means many residents work in other European countries. Capital gains tax is not expected of residents that are not from France. There is also not a net wealth tax. For the most part, property taxes in Monaco are quite favorable. Rental properties are taxed at 1% of the annual rent. Also, when the property is sold, there is a 33.3% tax on the sale.
You Can Gain Residency
Like many countries, there is a program in the country that allows those looking to escape income tax to invest in Monaco and gain citizenship. To gain citizenship, investors will have to place €500,000 deposit into a bank account in Monaco.
If all of these requirements are fulfilled, the applicant schedules an interview with immigration officials who will determine if the investor is a good fit for the country. If they pass, the investor and their family is granted permanent residency. Permanent residency grants you freedom to live and work in the country freely.
How to Invest
One of the easiest ways to invest in Monaco is through real estate, especially for those looking to gain citizenship. Since the country is quite wealthy, it shouldn’t surprise you that real estate in the country is not inexpensive. For perspective, with €1,000,000, a buyer can expect a 15 square-meter property. The prices are only expected to grow.
The reason it is so expensive is the limited land supply in the country, located between a sea and mountains. There isn’t much room to grow. With prices on the rise, demand is also going up, attracting successful entrepreneurs, businesses moguls, and investors.
Not only is the real estate a smart business move, the country is beautiful so it makes a great vacation home or place to live once you gain residency.
Alpen Partners and Expatriation
Partnered with respected law firms in various regions of the world, Alpen Partners is advising its clients on expatriation issues. In a world of increasing tax pressure and professional mobility, expatriation has become one of the most efficient tools for asset protection and estate planning. Moving abroad can come along with an abundance of benefits that can affect your taxes, your investment portfolio, cost of living, and your lifestyle completely. As the cost of traveling becomes cheaper, the benefits of expatriation for financial reasons is more easily obtained.
Taking the leap and leaving your home country can be a big decision with tons of personal and legal steps. The hassle of navigating the legal process of expatriation can be reduced with the guidance of Alpen Partners. Each step requires assistance, including getting the passport, making sure everything is completed correctly regarding taxes, acquiring work permits, making investments, and more. No matter what expatriation route is chosen, it can be a powerful tactic to allow clients to gain better control of their financial and personal lives.