Monaco, one of the smallest nations in the world, is known as the ‘Billionaires’ Playground’. This tiny sovereign state located in the French Riviera is famous for being one of the perfect places for people who love glamour and luxury. According to statistics, 32% of the city’s population are millionaires. If you are one of those who are wondering how this is possible, you are not alone. Let’s break down all the juicy bits of this wealthy, independent state.
According to a survey, one out of three people in Monaco is a millionaire. This may be difficult to take in, but it is a fact. The tiny principality of Monaco is a millionaire’s hub. For every square mile, there are over 12,000 millionaires in the territory. Here are a few factors that contribute to how people make a lot of money here.
Tax Benefits
Tax benefits are one of the top reasons people in Monaco can maintain their wealthy status. While most nations in the world have strict laws and policies about taxes, residents here enjoy not paying the following taxes.
- Property Tax – Property owners in Monaco do not pay for property taxes. However, owners of rental properties need to pay the government with 1% of their yearly rent.
- Personal Income Tax – For over a hundred years now, Monaco’s residents have been enjoying exemptions from paying personal income taxes. This law is applicable to people who have been living here for at least six months.
- Capital Gains Tax – Another tax benefit for the people of Monaco is that they are not levied with capital gains taxes. However, residents who come from France may need to pay some taxes because they may be subject to the net wealth tax laws in France.
Lucrative Business Opportunities
Monaco is also a haven for business opportunities. Here are some excellent proofs of why rich people remain rich while living here.
- Properties – Monaco has the most expensive properties in the world. If you look at properties for sale in Monte Carlo and other parts of Monaco, you will need at least $9,000 per square foot. The main reason homes in this area are very expensive is that there have been no new constructions for the past years. Since 2016, no residential unit has been built. The increasing demand for properties affects property prices in the market.
- Yachts – The place is famous for its annual Monaco Yacht Show. It is a massive opportunity for yacht manufacturers to attract billionaires and celebrity buyers. Local real estate agents also handle yacht rentals apart from selling villas and apartments.
- Luxury Car Rentals – Seeing a lot of luxury cars on the streets of Monaco is common because most residents own at least one. Tourists from different parts of the world can rent sports cars such as Bugatti, Lamborghini, Audi, and Ferrari.
With these factors, it is not surprising to know that millionaires all over the world would want to live in Monaco. It is a perfect place to spend your wealth and look for more opportunities to grow your riches. If you plan to move to Monaco, you can start talking to experts to assist you in the process. Prepare all the requirements and start experiencing how to live in the Billionaires’ Playground.