Moving to Monaco
Find a new home in a millionaire hotspot.
Many of our clients aren’t happy with their current life and ask us what they can do to increase their quality of life and benefit from financial incentives. We will often recommend it could be time to relocate. Expatriating or relocating can be a great way to change your lifestyle and open up your world through tax savings, better banking, investment options, and more. Monaco is a hotspot destination for high-earning investors from all over the world. In this article, we will look at what makes Monaco an ideal place to live and why high earners should consider moving to this country right away. When you are ready to start your expatriation journey [Link to the service Expatriation/Relocation], contact the experts at Alpen Partners. With our relocation services, you can create a thorough plan to help you meet your needs.
Why should you move to Monaco?
The small country of Monaco is located in the French Riviera in Western Europe and has attracted ultra-wealthy global investors and families for years. Nearly one in three people in this country are millionaires, making it one of the wealthiest countries in the world and is sometimes referred to as a “Billionaire’s Playground.” It’s well-known for casinos, lavish events, and glamour. The country’s population is around 38,000 people, but geographically is only .78 square miles, so it is also one of the densest counties in the world. That makes the country smaller than Central Park in New York City! The country is a short flight from most popular European cities, making it an ideal place for retirement. Residents enjoy a sage, beautiful country that is ranked one of the most livable cities.
The lucky individuals who reside in the country also get to take advantage of tax incentives and the ease of doing business and banking in the country. Monaco is considered a tax-friendly nation and ultimately did away with income tax way back in 1869. This makes Monaco Europe’s only sovereign zero-tax jurisdiction. There are some exemptions, of course. For example, French citizens cannot claim the exemption, even if they live there permanently. It is simply too easy for French citizens to cross the border for vacation, business, and living. Quality of life and financial benefits are the leading reasons you should consider moving to Monaco. Let’s explore those financial benefits some more.
Banking, Investing, and Taxes in Monaco
There are good reasons why millionaires love Monaco. There are many advantages for investors and business-minded individuals. One of the most significant factors that attract wealthy foreigners is the banking system. The banking system in Monaco is known for being robust and extensive, and so attractive that even people who have no plans to live in the country will often open a bank account. Nearly 70% of the assets held in Monaco are from non-resident funds, proving how much wealthy investors trust the country’s banking system. Large, private banks provide a typical cash counter, safety deposit box, direct deposit, and other standard banking services, with the more prestigious banks offering investment services like multi-currency deposit accounts, equity and fixed income trading, precious metals, foreign exchange, and commodity trading platforms. In addition, some exclusive banks offer managed portfolio services. Opening a bank account in Monaco is vital for a residency application, so this is one of the first steps to complete when relocating here.
Another draw to Monaco is the taxation regulations. The country is considered a tax-friendly nation which is a country or jurisdiction that offers tax incentives for foreign investors and corporations. The tax savings allow investors and corporations to grow in a way that they aren’t able to back home. The tax-friendly nation benefits as well since these benefits attract wealthy investors and companies to participate in their economy, create jobs, and encourage growth.
Monaco does not levy personal income tax on residents and hasn’t since 1870. For technicality, a resident is a person who lives in Monaco for just over six months out of the year. This is a realistic location for wealthy individuals as it is easily accessible by plane, train, and boat, which means many residents work in nearby European countries. There is also not a net wealth tax. In terms of property tax, rental properties are taxed at 1% of the annual rent, and when a property is sold, there is a 33.3% tax on the sale. There aren’t property taxes otherwise. There are certain exemptions from these tax advantages, so work with a professional to determine if you qualify.
There are also attractive investment options in Monaco. Real estate is a noteworthy investment option, which is also one of the easiest ways to begin investing in Monaco. It’s even more popular for investors hoping to earn citizenship eventually. With the country’s wealth, it shouldn’t be a surprise that it’s costly since it costs roughly €1,000,000 per 15 square meters and is consistently rising. The high cost is partially due to the limited land supply since the country is located between a body of water and mountains. With prices rising, demand is also going up, attracting successful entrepreneurs, businesses moguls, and investors. Not only is real estate a smart business move, but the country is also beautiful, so it makes a great vacation home or place to live once you gain residency.
How to move to Monaco
If Monaco sounds right for you, it’s time to begin planning. Below, you can find a summary of how someone can earn residency in Monaco, but no one plan will work for everyone. It’s recommended to work with the guidance of relocation lawyers to create a plan. Alpen Partners has the expertise you need to make a plan that will benefit your life and your financial future. Those interested in relocation will need to open a bank account and deposit at least €500,000 before applying. Once this is done, the application consists of the following documents:
- Valid passport.
- Birth certificate
- Marriage/Divorce certificates if needed
- Proof of a clean criminal record in your last country of residence for the past five years
- Documents that prove the applicant’s educational and professional background and how their assets have been acquired
- Health insurance documentation that covers expenses in Monaco for applicants 70 years of age or older
- A lease for a minimum of 12 months of acquisition of property in Monaco.
- A completed official residency application form
Once you’ve gathered all of the proper documents, they will need to be translated into French and submitted. Applicants who currently hold an EU passport can expect the process to take about three months, and non-EU citizens will wait around seven months. There is also a residency by investment option, which allows investors who place a €500,000 deposit into a bank account in Monaco.
Moving to Monaco with Alpen Partners
Are you interested in moving to Monaco? With undeniable beauty and advantages for high-earning investors, it’s easy to see why you would. Contact our team to find out more regarding moving to one of the wealthiest countries in the world. Alpen Partners has the expertise to make your big move successful. There are many steps to moving abroad, and we don’t believe you should make the leap alone. Whether you are trying to find the perfect place to live or you need help with your financial planning, our skilled team is prepared to assist you and your family every step of the way. Beyond relocation, our team is prepared to guide you through all the personal and financial planning you need. So, if you are feeling trapped by your local investment options and want to spread your wings a bit, consider relocating to Monaco with Alpen Partners. Contact us below!