Good reasons to choose Monaco
1. Taxation of persons
Real estate prices are high in the Principality. However, this is compensated, for most residents, by the tax exemption they can benefit from living in Monaco.
Personal income tax : One of the main characteristics of the Principality of Monaco is that Monegasque residents are not subject to income tax. Income and capital gains (capital gains) are fully exempt.
This does not apply to French and American nationals.
Tax on fortune : Monaco does not levy wealth tax either.
Inheritance and gift tax : In Monaco there is a tax on inheritances and donations (tax on transfers). Notwithstanding, the applicable tax rate depends on the degree of kinship between the deceased and the heir. For example, that applicable to children, spouses and parents is 0%. As a result, in most cases, no inheritance tax is levied.
Transfer taxes : The registration fee on the changes of registered real estate properties (notary fees included), is 6%, during a purchase in full transparency. It is 9% if acquired through a "complex" legal structure.
Local taxes : There is no tax on the ownership of real estate in the Principality (housing or land)
VAT : VAT (Value Added Tax) is 20%.
Departure tax : People who leave Monaco to settle in another country do not have an exit tax to pay.
Special tax treatment for foreigners settling in Monaco
There is no special tax regime applicable to foreigners moving to Monaco.
2. Taxation of companies
Companies established in Monaco are exempt from tax when most of their business is carried out in the Principality. Companies deriving more than 25% of their turnover from outside Monaco are subject to a tax of 33.3%.
3. Unsurpassed internal security
For both residents and visitors, homeland security is one of the priorities of government action, as well as a well functioning school, social and health care system.
4. An exceptional location and accessibility
The Principality is well served by access:
Nice-Côte d'Azur International Airport is located 22 kilometers from Monaco. Helicopter and bus services, taxis and rental cars provide a permanent connection between the airport and the Principality.
The Monaco / Monte-Carlo (S.N.C.F.) station hosts many international trains. The railroad is a means of rapid communication between the Principality and all towns on the French Riviera, from Cannes to Menton.
The A8 motorway, which connects to the entire European motorway network, serves the Principality with easy access ramps (junction A8 - RN7 from Nice, La Turbie, from or towards Nice, Roquebrune, from or to Italy).
5. The economy
The Principality of Monaco has experienced dynamic growth in recent years. Since 2013, Monaco's GDP has exceeded its pre-crisis level, recorded in 2008. In 2016, GDP reached 5.85 billion EUR and growth amounted to 3.2%. The country's economy is heavily dependent on tourism (including the attractiveness of casinos). Each year, 300,000 tourists visit the Principality. Other sectors of the economy are developing: maritime activities, cosmetics and biothermy. Monaco attracts a large number of foreign investments via tax incentives. Nevertheless, the Monegasque economy is highly dependent on the financial sector and remains vulnerable to the international situation.
Despite a degraded international context, the financial sector remained solid in 2017. The state budget was in surplus in 2017, for the sixth year in a row. In addition, the industry and trade sectors benefited from a stimulus package that stimulated them. Real estate, information and communication services have evolved, and wholesale and retail trade has made remarkable progress.
In recent years, the country has committed to strengthening international tax cooperation and combating tax evasion. In 2014, Monaco became the 84th jurisdiction to sign the Convention on Mutual Administrative Assistance in Tax Matters. In 2015, Monaco committed to automatic exchange of information according to OECD standards. In addition, Monaco and the EU signed an agreement in July 2016 on the automatic exchange of tax information for its citizens.
Monaco's standard of living is very high and unemployment is considered non-existent. The employment rate rose by 0.9% in the private sector and by 1.7% in the public sector between 2015 and 2016 (Monegasque Institute of Statistics and Economic Studies). Monaco has one of the highest GDP per capita in the world.
(source : BNPParibas)
6. Quality of life
The quality of life is preserved in Monaco thanks to the constant attention of the Prince's Government. It therefore acts to put in place a long-term strategy, in a spirit of prospective, to ensure respect for balances that guarantee the quality of life in terms of housing, daily life, animation and development of the country.
Monaco is a leisure destination with hotel and nautical infrastructures of great tradition.
Sporting, cultural and festive life is combined with daily practice and many international events are organized.
Its community is welded, welcoming and multicultural (more than 135 nationalities living in harmony) and several languages (French, English and Italian) are commonly spoken.
7. Public services
A modern state must offer an organization and services that meet the challenges and expectations of the population. With a local Administration, available and attentive to businesses and individuals, Monaco is an example at the global level.
Monaco is above all a sovereign, exemplary, neutral and independent State endowed with stable institutions, an original economic and social model whose absence of debt and the structural balanced budget ensure sustainability.
A long-standing commitment of solidarity for an eco-responsible and sustainable development.