With a population of about 38,500 residents, the Principality is an independent sovereign state established since 1297 and a full member of the United Nations.
With mild winters, warm summers, incredible food, a marina full of yachts and a coast filled with luxurious homes, Monaco has a lot going in its favour. 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 and you have a perfect base from which to travel throughout Europe and the rest of the world for both business and leisure purposes.
It is no wonder that Monaco has long been a playground of the ultra-rich and one of the wealthiest countries in the world. But it’s 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 individual.
Above all, the country’s tax policies have ensured Monaco’s place on the map as the preferred destination for foreign investors to move both their money and their family due the number of advantages over other jurisdictions, for example
- For resident individuals, there is no income tax and no requirement to prepare and submit tax returns or disclose worldwide income or assets;
- For companies, although the corporate tax rate is 33.33%, after various allowable deductions, resulting in an effective corporate tax rate under 6%. Directors’ fees if taken by resident directors are free of income tax to the recipient;
- As there is no income, capital gains or wealth tax there is a greater ability to preserve and accumulate one’s wealth;
- There is no capital gains tax or wealth tax for non-French resident individuals;
- There are no inheritance taxes on Monaco based assets between husband and wife or children;
- The residency application procedures for most individuals and their families is relatively straightforward;
- There is no requirement to purchase a property in Monaco nor is there a minimum property rental charge payable.
The Application Process – Obtaining Monaco Residency
In general, the procedure of moving to Monaco is straightforward, but there are some requirements to be met to obtain a Monaco residency, such as
Proof of accommodation: as far as a home is concerned, this can be rented or bought, eventually. If renting the lease must be for a minimum of 12 months and have sufficient bedrooms to accommodate the number of persons applying. For example, for this to qualify for Monaco residency, a couple should rent a one bedroom apartment at least and for a family of four a minimum of two bedrooms.
Proof of financial good standing: the most common evidence would be a certificate from a local bank. The bank will require at least €500,000 on deposit, this can be invested.
Proof of good character: the final step is to gather some additional documents, i.e. criminal record from the country of residence during the last two years, a valid passport/id card, birth certificate ( a translation is required if not in English or French), along with the application form. In addition to this, for children a passport/id card, birth certificates, proof of schooling outside Monaco is required.
Once the documents are gathered and forms completed, a meeting is arranged with the Residents’ section. The review/approval of the application takes approximately eight weeks.
We will be pleased to assist with your move to Monaco to help make it as smooth as possible. As part of our tailor-made concierge services, we will be happy to:
- Prepare your Monaco residency application;
- Attend the meetings in Monaco with you when applying for residency;
- Introduce you to local estate agents to help find you a property to buy or rent;
- Help you open a bank account and obtain the necessary bank letter;
- Assist you with the application to form a business entity in Monaco;
- Arranging for the Tax Residency certificate.
If you would like to learn more or discuss your specific requirements in more detail, please email Victoria Kondratenko at firstname.lastname@example.org or call on +377 97 97 82 00.