The Principality of Monaco : an Overview

In connection with the launching of Fidinam’s Multi Family Office activities in Monte-Carlo, we would like to present a brief overview of the Principality of Monaco.  Although one of the smallest countries as regards land surface, Monaco offers to its residents one of the best qualities of life in the world.   

HIGH QUALITY OF LIFE

The Principality enjoys an exceptional climate and offers its residents an unparalleled quality of life.

Nestled by the Mediterranean Sea, at the foot of the Maritime Alps, between the French and the Italian Riviera, Monaco benefits from a unique geographical position.

Only 30 km from Nice International Airport, France’s third-busiest airport with over 13 million passengers per year, the Principality is linked to over 100 destinations around the globe. Seventy flights per day allow Monaco residents to connect with Europe’s main hubs in less than 2 hours.

It is no coincidence that Monaco is one of the most popular destinations in terms of relocation; In addition to the mild climate and its multicultural environment, residents enjoy a very good health service, increased security, and excellent schools, bilingual and international, private as well as public.

The number of wealthy families who have decided to settle in the Principality in recent decades is such that today almost a third of the Principality’s residents are millionaires.

INSTITUTIONAL STABILITY

The Principality of Monaco is an independent and sovereign state under international law. Its government structure is a hereditary constitutional monarchy. The Grimaldi family has reigned in Monaco for over 700 years, giving the country unique political stability.

Prince Albert II is the Head of State. The public powers are organized based on democratic principles and the judiciary system is independent from the executive branches of government.

THRIVING ECONOMY

Thanks to Monaco’s thriving economy, its residents benefit from the highest quality business and financial services while having access to the best leisure activities and luxury products.

Residency in Monaco is therefore perfectly suited for entrepreneurs as a base from which to continue their business activities, but also for pensioners who want to enjoy their leisure time.

TAX REGIME

One of the main features the Principality’s fiscal system is the favorable tax regime applicable to individuals. People who settle in Monaco benefit from an absence of income tax, wealth tax, annual property tax and council tax.

Furthermore, individuals residing in Monaco are not subject to capital gains tax.

Inheritance/Gift tax is applicable to assets that are located in the Principality, but the tax rate for children, spouses and parents is 0%.

Due to the bilateral agreement of 18 May 1963 signed by France and the Principality of Monaco, French nationals moving to Monaco do not benefit from this attractive tax regime. Furthermore, the Monegasque system does not affect fiscal rules applicable to individuals by virtue of their citizenship or location of their assets. For example, citizens of countries applying a “universal” tax system such as the United States will still be fiscally liable based on the American rules even if they establish their tax residence in the Principality.

It is important to note that, for certain transactions, registration fees may be levied at either a fixed rate or a proportional rate. In particular, transfer of real property is usually subject to a proportional duty of 4.5%.

Finally, due to customs union between France and the Principality, a Value Added Tax (VAT) is assessed and collected in Monaco on the same basis and at the same rates as in France (current default rate is 20%).

RESIDENCE PERMIT

Anyone above 16 years of age and wishing to reside in Monaco for more than three months per year, or permanently reside in the Principality, must apply for a residence permit.

In Monaco, there are three main categories of residence permits for foreigners:

  • The “temporary” (temporaire) permit may be issued with no minimum requirement period for residency in Monaco.  It is therefore applicable to first-time residents.  It is valid for one year.
  • The “ordinary” (ordinaire) permit may be issued to people who have lived in Monaco for three years.  It is valid for three years.
  • The “privileged” (privilégié) permit may be issued after ten years of residence in Monaco.  It is valid for ten years.

All permits are renewable.

FIDINAM MULTI FAMILY OFFICE S.A.M. can provide competent advice and support in connection with relocation to Monaco.

 

MONACO – KEY INFORMATION 

Residents:

Approximately 38’300 residents (including 9’200 Monegasque nationals)

139 different nationalities represented

Largest foreign communities: French, Italian, British, Swiss, Belgian, German, Russian, Dutch, Portuguese, Greeks.

Languages:

French is the official language but English and Italian are widely spoken.

Economy:

Approx. 56’000 jobs in the private sector

More than 5’500 registered companies

Gross domestic product per capita as at 31.12.2017: €67 786

Security:

Specially trained police officers. 1 for every 100 residents, a 24/7 video surveillance system covering all the territory.

Schools:

From nursery to grade 12 parents are sure to find the option that best suits their children:

Private Schools:

  • La Petite Ecole Montessori (children from 18-months to 6 year olds)
  • International School of Monaco (children from 3 to 18 years old)
  • François d’Assise Nicolas Barré (children from 3 to 18 years old)

Public schools: 

  • 7 nurseries and primary schools (children from 3 to 10 years old),
  • 1 secondary school – Collège Charles III (children from 11 to 14 years old)
  • 1 general upper secondary school – Albert I (children from 15 to 18 years old)
  • 1 vocational and catering school – Lycée Technique et Hôtelier (15 to 18 years old)

Health Institutions:

  • Princess Grace Hospital
  • Cardio-thoracic centre
  • IM2S Sport Medicine & surgery
  • Hemodialysis center

Main Recurring Events

  • Monte-Carlo Rally (January)
  • International Circus Festival (January/February)
  • Opera Garnier (March)
  • Rose Ball (March)
  • Spring Arts Festival (March)
  • Monte-Carlo Rolex Tennis Masters Series (April)
  • Historic Grand Prix (May – the event is hold every other year)
  • ePrix (May – the event is hold every other year)
  • Formula 1 Grand Prix (May)
  • International Jumping Show (June)
  • Monte-Carlo Television Festival (July)
  • Concerts at the Prince’s Palace (July)
  • International Fireworks Festival (July/August)
  • Summer Festival at Le Sporting Club (July/August)
  • Red Cross Gala Ball (August)
  • Yacht Show (September)
  • Monaco Classic Week (September)
  • Monaco Dance Forum (December – the event is hold every other year)

Exclusive Private Member Clubs

  • Yacht Club
  • Automobile Club
  • Beach Club
  • Monte-Carlo Country Club

Leisure

  • More than twenty-five 18 hole golf courses between the French departments of Maritime Alps and the Var.
  • Auron (135 km of ski runs), Isola 2000 (120 km of ski runs) and Valberg (115 km of ski runs) are among the ski stations located less than 1 ½  hour drive from Monaco.
  • Italian & French Riviera road trips (Portofino, Santa Margherita, Saint Tropez, Cannes…).
  • Main European cities less than 2 hours’ flight away.

Wine & Dine

  • More than 200 venues between bars, restaurants and night-clubs
  • Michelin Star Restaurants : Louis XV – Alain Ducasse (3*), Joel Robuchon Monte-Carlo (2*), Yoshi (1*), Le Blue Bay (1*)

Elena Avogadro, Legal & Compliance Officer Fidinam Montecarlo

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