Here’s what you should know about life in Monaco….
- Many people see Monaco as a tax break. And it is. However, if you are a foreign national living in Monaco but earning your income outside of it, you must pay tax.
- Another taxation law is that business profit tax is payable. However, only if the business generates over 25% of turnover outside of Monaco. It’s also useful to know that tax reliefs are available for young or non-commercial business.
- Value Added Tax (VAT) is the same as in France. 20% usual rate and 10% as the reduced rate.
- Monaco is also known for favourable inheritance benefits. Currently, inheritance depends on the closeness of the relation. A direct relation, for example, your children, has no taxation. Inheritance between unrelated individuals, on the other hand, will be charged taxation at 16%.
- Further, to open a bank account in Monaco there are different guidelines depending on nationality. EU nationals need to prove identity. Non-EU nationals need to prove residency. Both must also provide proof of address in Monaco as well as proof of income.
- To get residency in Monaco you are required to prove that you have adequate financial resources to support yourself. This is done by making a deposit in a bank in Monaco and acquiring a certificate, from the bank, stating that it’s been made.
- To become a resident you must also buy or rent a property in Monaco. Monaco has some of the highest property prices in the world so it’s important to decide whether buying or renting suits your lifestyle, and budget. A 1,045 sqm apartment could set you back around €70,000,000, or a 30 times smaller apartment at 35 sqm costs around €900,000. For rentals, a 900 sqm apartment costs €60,000 a month whilst a considerably smaller 9 sqm will cost around €700 a month.
Cost of living
The cost of living in Monaco is not hugely different to that of France, depending on your lifestyle. A meal for 2 can range from €60 to thousands. Bearing in mind Monaco has some of the most highly rated restaurants in the world. Le Louis XV – Alain Ducasse à l’Hôtel de Paris, for example, is 1 of just 127 (or 4% of all starred restaurants) to achieve 3 Michelin stars.
Although eating out may set you back, getting there will not. Buses cost just €1.50 through the principality and to surrounding areas. You can travel between the Monaco Grand Prix and Cannes Film Festival as much as you like for just €1.50!
So, with our top facts and important information on the cost of living, now is time to make the move. But, be sure to get in contact with a Financial Adviser to ensure you get the best out of your hard-earned money.