WHY SETTLING IN MONACO • THE PRACTICAL GUIDEThe Principality of Monaco is a small state with an area of 2.02 km2 enclosed between 3 French municipalities that are Cap d'Ail, Beausoleil and Roquebrune Cap Martin. This independent country is bordered by the Mediterranean Sea. It’s a country of superlatives. Indeed, Monaco has about 38,000 inhabitants or 19,000 inhabitants per km2 which makes it the most populous state in the world and this explains its density of construction. Monaco is also the safest country in the world with the largest police force in the world per square meter. This is the reason why, in addition to the mild climate and the favorable taxation, many nationalities want to go there. install and reside there. There are more than 120 of them. For all the nationalities settled in Monaco, there is no income tax, no corporate tax, no real estate gain or property tax, no direct inheritance tax. Life is pleasant there. Monaco also hosts a large number of international events including The Formula 1 Grand Prix, The Monaco Yacht Show, The Rolex Masters Tennis and many others. Monaco is also recognized for its luxury hotels and high-quality restaurants as well as its gaming casinos.
This places Monaco in second place, just behind London, for the most expensive real estate in the world. Monaco is currently divided into nine districts and a new 27 hectare district, Le Portier, is under construction on the sea. The prices per square meter are on average 30,000 € / m2 can reach peaks beyond 70,000 € / m2 or 100,000 € / m2 for the most upscale properties.
The population of Monaco amounts to a total of 38,100 inhabitants in 2019. It is made up of French nationals (28.2%), followed by Monegasques (21.5%), Italians (18.6%), British (7.5%), Belgians (2.7%), Germans (2.5%), Swiss (2.5%) and Americans (1%).
The official language of Monaco is French, although Italian and English are commonly spoken.
Whether love at first sight or for more down to earth reasons, each person who chooses to come to live and work in Monaco has a different story to tell about their first encounter with the Principality.
After listening to some of their stories, here are some very good reasons for choosing Monaco :
A Sovereign State that is neutral and independent, a role model country with stable institutions
An accessible location and exceptional quality of life in the heart of Europe, bordering the Mediterranean basin
A united, welcoming and multicultural community (more than 120 nationalities living in harmony) in which English is widely spoken
A leisure destination with hotel and nautical infrastructures in the best traditions
A unique economic and social model where the absence of debt and structural budgetary balance is a long-term guarantee for the future
Sports, culture and festivities as part of everyday life, as well as numerous international events
Exemplary domestic security, both for residents and visitors , which forms one of the Government’s priorities, together with outstanding schools , social services and health care
A diversified and forward-looking economy, with a well-adapted taxation policy , and with a dynamic employment and consumer market that also impacts neighbouring French and Italian areas
Privileged taxation: the particularity of the Monaco tax system is the total absence of direct taxation. To benefit from it, it is necessary to be effectively and truly established on the territory of the Principality.
People residing in Monaco (with the exception of French nationals governed by the Franco-Monegasque Bilateral Convention of 1963) do not pay
tax on income, capital gains or capital, on wealth, no property tax, or housing tax, or direct inheritance tax.
Amount of inheritance tax
Assets located in Monaco are subject to the following inheritance tax:
• direct descendants: 0%
• between brothers and sisters: 8%
• between uncles and nephews: 10%
• between family members: 13%
• between unrelated persons: 16%
Companies established in the Principality which generate more than 75% of their turnover in the Principality are not subject to income tax (ISB - "Tax on profits from industrial and commercial activities"). If however they generate more than 25% of their turnover outside Monaco, they will have to pay this tax, the tax rate of which is 33.33%. The calculation base is determined after the remuneration of the managers and shareholders has been collected.
An accessible, open and attentive Administration for both businesses and the public
A long-standing commitment to eco-responsible and sustainable development
THE "SETTLING UP IN THE PRINCIPALITY OF MONACO" BROCHURE
Published by the Prince's Government, this brochure is intended for investors, future residents and business creators.The Settling in the Principality of Monaco Brochure
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Source: Gouvernement Princier - www.gouv.mc
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