We all know the monarchy of Monaco, one of the most wealthiest countries in the world. But what makes them so special? Let’s dive in!

More foreigners live in Monaco than Monegasques. Of the inhabitants, 17% are Monegasque, 28% have French nationality, and of the 55%, a significant portion are Italian.

History

Economic development was stimulated in the late 19th century with the opening of the rail link to France. The economy is now focused on finance, trade and tourism. Low taxes have attracted many foreign companies and account for 50% of the annual government income. Tourism accounts for 25% of government annual income. A major centre of Monaco’s economy is its 1856 casino.

Economy

The local economy consists mostly out of finances, trading and tourism. Low taxes have attracted many foreign companies and account for 50% of annual government income.

Tourism

An important sector in Monaco’s economy is tourism. It accounts for 25% of annual government income. Most tourists, come for the climate and casinos. The country’s main source of income is tourism, especially their casino’s, which have many wealthy tourists flocking to Monaco. The SBM is the oldest and largest Monegasque company in this sector. Among other things, it operates the Casino, but also has numerous other interests in the Monegasque entertainment industry and real estate.

Industry and banking

In addition to tourism, Monaco also has an extensive banking sector; the state’s reputation as a tax haven certainly contributes to this. There is regulation in this sector, but foreigners (except French nationals) still do not have to pay income tax. However, it does charge 33% corporate tax on corporate profits. There’s even some industry that provides 8% of its GDP. Monaco has a brewery, there is a factory that processes plastic for the automotive industry, and there are some pharmaceutical industries. Most employees (about 40.000) are commuters from France and Italy.

Real estate

Rent can cost up to €25,000 per month for a small appartement. If you want to buy real estate, that’s okay, but you have to be able to put between €1 million and €12 million on the table. Or higher even! Because 3-bedroom-appartements can vary between €10 million and €20 million. A 4-bedroom-appartement can even vary between 20 and 40 million euros, which clearly puts the wealth and living cost of certain residents certainly into perspective. If you want to buy real estate in Monaco, count on at least 35.000 euros per square meter to about 70.000 euros in the very exclusive districts. Monaco consists of districts, the most famous of which is the Monte Carlo district.

Fame & Wealth Magnet Explained

The Principality of Monaco is known for its glamour, vibrant nightlife, Formula One racing and its famous casino in the center of town! It even has a square named after it, Place du Casino! It is also known for it’s exotic garden. It houses a wide variety of plants from around the world.

Many rich people come to luxurious Monaco, including celebrities such as Justine Henin, Stefan Everts, Jacky Ickx, David Coulthard and also the most famous residents: prince Albert of Monaco and the princesses Stephanie and Caroline of Monaco.

In Monaco, one out of every 12.500 residents is a billionaire. The mini-state is anyway the playground of the super-rich, there are also a lot of residents who have more than a million euros.

The reason Monaco is known as a tax haven is because foreigners there don’t have to pay income tax, wealth tax, capital tax, or tax on inheritance or gifts, which has attracted a lot of wealthy foreigners and foreigners who became wealthy because of its tax deductions. But there are some conditions to live in Monaco.

Conditions to stay

The door is open to you if you have an employment contract there in a company based in Monaco, if you’ve started a new company there or if you can prove you’re wealthy enough to deposit a minimum of €500.000 to a bank in Monaco.

Wealthiest country

Monaco ranks third in the CIA’s list of richest countries, with a per capita income of 96.000 euros. It’s high wealth explains its high life expectancy, its poverty-free streets, and the highest number of millionaires and billionaires in the entire world.

1 in 3 Monegasques has a 7-figure sum at least in his or her bank account.

Reasons residents aren’t allowed in the casino

Many people ask the following question: if the people there are so rich, why aren’t they allowed in the casino? After all, it would be more beneficial for its economy. However, the answer is simple: no taxes are collected, so the government doesn’t collect income tax anyway.