The Principality of Monaco, welfare state
The Principality of Monaco is an independent sovereign state of only 2 square kilometres, overlooking the Mediterranean Sea and nestled between France and Italy. Universally known for its extraordinary landscapes, climate and world of luxury, fashion, culture and sport, Monaco is one of the places on the planet with the highest concentration of banks. With almost 140 nationalities living on its territory, testifying to its openness to a world where business and leisure merge happily, the Principality is a genuine beating heart that never ceases to attract the High-Net-Worth Individuals.
A sovereign, neutral and independent State, a model country with stable institutions
The Principality of Monaco’s internal security policy is exemplary and constitutes a fundamental basis for maintaining the climate of confidence in economic matters for which it is renowned.
The state’s economy is based on a favourable tax policy for residents and businesses, while the labour market benefits from the skills of neighbouring countries and is constantly fuelled by external innovation.
Confidence in the Principality attracts not only prudent investors and international companies for its unique business prospects, but also families wishing to give their children access to a rigorous education system in a privileged environment. Moreover, the healthcare system is well above the European average, thanks to the excellent medical infrastructure.
A Country open to the outside world
However, the Principality of Monaco does not live under a dome and maintains institutional relations with numerous countries on the international scene, thanks also to its exceptional and strategic geographical position: in addition to being very well connected via the international airport of Nice, just a short distance away, a metro line is currently being planned between Nice and Menton.
An appealing Country
The main reasons for living and investing in the Principality of Monaco can be summarised as follows:
- the ideal geographical location and the excellent international connections;
- people residing in Monaco, with the exception of French nationals by virtue of a bilateral agreement, are not subject to any tax on income, capital gains or capital;
- companies, with a few exceptions, are not subject to any direct taxation;
- the cosmopolitan character of the Principality, which has favoured multilingualism, removing all those obstacles that hinder the interest of the more apprehensive;
- the ease of expression, which, by fostering harmony among residents and communication between the different cultural ‘communities’, facilitates the development of intercultural exchanges and the creation of artistic, literary and sporting events;
- Monaco is an attractive seaside resort with a wide and diversified hotel offer.
A stable and dynamic real estate market
The advantages offered by the Principality are not unknown to investors, who particularly appreciate its real estate market for its unique features. The asset value of real estate is resistant to crises and geopolitical events around the world whereas similar markets in other countries are severely affected.
Although it is the most expensive in the world, Monaco’s real estate market is dynamic and the demand for property is always exceeding the available offer.
There is no doubt that the health crisis has also affected the Monegasque market, whose outlook was rather optimistic before it occurred.
Nonetheless, Monaco has shown strong resilience as property prices have risen by more than half over the last ten years, undeniably ahead of other European and international markets.
The most sought-after districts in Monaco are Larvotto, with an average price per square metre of 65,520 euros, Fontvieille with 51,872 euros/sqm, followed by Condamine with 47,421 euros/sqm, La Rousse with 41,890 euros/sqm and finally Moneghetti with 38,253 euros/sqm. The most expensive area continues to be Monte Carlo with prices ranging from 90,000 to 100,000 euros/sqm.
Like the sales market, the rental market has also been characterised by a strong increase in demand for large surface areas. The year 2020 has prompted Monegasque residents and newcomers to change their lifestyles and consider staying longer in the Principality, reassuring investors who no longer fear of being short of buyers. Monaco ranks as the most expensive place for residential rentals, with an average monthly rent of 126 euros/sqm.
International diplomatic events are essentially the factors that attract the interest of new players to the Principality of Monaco:
— events linked to Brexit could reasonably increase fears of greater instability in the Anglo-Saxon world, leading private clients belonging to this nationality to pay more and more attention to the Principality’s market, which would instead offer greater administrative and financial stability;
— citizens of the Russian Federation see the Principality as a politically safe place in which to seek refuge to settle permanently.
This new trend can only strengthen and increase the number of luxury companies that will establish or develop in Monaco, as well as other sectors that will need flexible spaces with the emerging of new working models.