Monaco

Monaco, a sovereign city-state on the French Riviera, offers luxury, privacy, and a favourable tax regime for family offices. With no personal income, capital gains, or wealth taxes, Monaco's stable political climate, strategic location, robust legal framework, and high quality of life make it ideal for wealth management and investment.

Table of Contents

Introduction

Evaluation categories

  • Tax regulations & incentives
  • Legal & regulatory structures
  • Economy & political climate
  • Services & talent access
  • Culture & lifestyle considerations
  • Resources

    Key numbers

    FAQ

    monaco
    Updated on June 13, 2024

    Introduction

    A haven in the Mediterranean

     

    Monaco stands as a beacon of luxury, exclusivity, and innovation. This sovereign city-state on the French Riviera is renowned for its advanced economy, high standard of living, and as a haven for wealth owners. With its strategic location, favourable tax regime, and robust privacy laws, Monaco offers an unparalleled environment for family offices seeking to manage and grow their wealth efficiently.

    Notable: A hub for financial privacy and tax efficiency

    Monaco is notable for its tax-friendly environment, with no personal income tax, wealth tax, or capital gains tax for residents. This, coupled with its secure banking sector and political stability, makes Monaco a highly desirable jurisdiction for wealth owners and family offices.

    People to know

    costa theo
    Relocation Advisor
    Costa Theo

    Monaco

    Francois Botha
    Founder & CEO, Simple
    Francois Botha

    Global

    These are experts from our network who deeply understand specific topics or subject matter, but can also help navigate the local ecosystem with network, connections, insights, services, and more.

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    Evaluation categories

    1. Tax regulations & incentives

    Monaco's tax regulations are exceptionally favourable for individuals and businesses alike. The absence of personal income tax, capital gains tax, and wealth tax for residents underpins the principality's appeal as a premier jurisdiction for wealth management and preservation.

    Monaco stands as a beacon for family offices seeking fiscal efficiency within a framework of political stability and luxury. The principality is renowned for its favourable tax regulations, which are among the most enticing in the world for high-net-worth individuals and their family offices.

     

    A cornerstone of Monaco’s tax system is the absence of personal income tax for residents, a policy in place since 1869. This means that individuals living in Monaco do not pay taxes on their worldwide income, making it an ideal jurisdiction for wealth accumulation and preservation.

     

    In addition to no personal income tax, Monaco does not levy capital gains tax or wealth tax, further enhancing its appeal to family offices that aim to manage and grow their assets in a tax-efficient manner.

     

    The principality also offers incentives for businesses, including a relatively low corporate tax rate for companies that generate more than 25% of their revenue outside of Monaco. However, it’s important to note that this favourable tax regime is coupled with strict residency requirements and due diligence processes to maintain Monaco’s reputation as a responsible and secure financial centre.

    2. Legal & regulatory structures

    Monaco's legal system provides a secure and transparent framework for the establishment and operation of family offices. The principality has developed specific regulatory structures to cater to the complex needs of wealth management entities.

    One of the key aspects of Monaco’s legal framework is its stringent privacy laws, which protect the confidentiality of financial and personal information. This is coupled with comprehensive anti-money laundering (AML) regulations and a strong commitment to international cooperation against tax evasion, demonstrating Monaco’s dedication to maintaining a reputable and secure financial centre.

     

    Family offices in Monaco must navigate specific regulations designed to uphold the principality’s standards. These include due diligence and reporting requirements that ensure compliance with both local and international laws. Moreover, Monaco’s legal system provides for the establishment of trusts and foundations, offering family offices versatile tools for estate planning and asset protection.

     

    Additionally, Monaco has agreements in place to avoid double taxation with several countries, although it is not part of the EU. This facilitates cross-border financial operations and enhances Monaco’s attractiveness as a jurisdiction for family offices seeking optimal legal and regulatory conditions for wealth management.

    3. Economic & political climate

    Monaco enjoys a stable and prosperous economic climate, supported by its tourism, real estate, and finance sectors. Political stability is a hallmark of the principality, ensuring a safe environment for investors and residents alike.

    Monaco’s economic and political climate presents a stable and secure backdrop for family offices, making it a magnet for global wealth. Governed by a constitutional monarchy, with Prince Albert II at the helm since 2005, Monaco boasts a political stability that is enviable worldwide.

     

    The Monegasque economy, underpinned by tourism, finance, and real estate, offers a resilient and prosperous environment for family offices. The principality’s strategic Mediterranean location, coupled with its luxurious lifestyle, attracts high-net-worth individuals and contributes to a robust real estate market. The finance sector, while discreet, is highly developed and sophisticated, providing a wide array of services tailored to the needs of family offices, from investment management to complex wealth structuring.

     

    The principality’s commitment to maintaining a balanced budget and its no-public-debt policy that underscore its economic prudence and foresight, ensuring a stable environment for family offices to thrive.

    4. Services & talent access

    Monaco's service industry is well-developed, providing family offices with access to a wide range of professional services, including legal, financial, and consulting expertise. The principality also attracts top talent, offering a pool of skilled professionals to support the operations of family offices.

    Monaco offers unparalleled access to a range of high-quality services and talent, essential for the sophisticated needs of family offices.

     

    The principality has cultivated an ecosystem that attracts top professionals in wealth management, legal advisory, and banking services, ensuring family offices can leverage expert guidance and support. This pool of talent is adept at navigating Monaco’s unique regulatory and economic landscape, providing tailored solutions that encompass tax planning, asset management, and estate planning.

     

    Beyond financial services, Monaco’s global appeal and high standard of living attract skilled professionals across various sectors, including real estate, luxury services, and healthcare, thereby enriching the support system available to family offices. This access to a diverse set of services and professionals ensures that family offices can manage their wealth efficiently while enjoying the lifestyle and privacy Monaco is famed for.

     

    The principality’s commitment to innovation and sustainability has also seen a rise in expertise in green finance and sustainable investment opportunities, catering to the growing trend of ESG (Environmental, Social, and Governance) investing among wealthy families. This evolving landscape of services and talent in Monaco positions family offices to not only manage and grow their wealth but also to align their investments with broader social and environmental goals.

    5. Culture & lifestyle considerations

    Monaco is not only a financial hub but also a cultural and lifestyle destination. The principality offers a high quality of life, with world-class amenities, events, and recreational activities.

    Monaco’s culture and lifestyle are unparalleled, offering a blend of luxury, exclusivity, and vibrancy that is particularly attractive to family offices. The principality is synonymous with high society and sophistication, hosting world-renowned events such as the Monaco Grand Prix and the Monte-Carlo Opera. These cultural highlights, along with an array of luxury yachts, upscale restaurants, and designer boutiques, underscore Monaco’s appeal as a playground for the affluent.

     

    Beyond the glamour, Monaco offers a safe, secure environment with one of the lowest crime rates in the world, making it an ideal location for families. The principality’s education system is of high calibre, offering international schools that cater to a diverse expatriate community. This, combined with its health services, ranked among the best globally, ensures a high quality of life for residents.

     

    The Mediterranean lifestyle, with its emphasis on outdoor living, healthy eating, and leisure, aligns with the desires of those seeking a balanced, fulfilling life. Monaco’s tight-knit community and multilingual populace facilitate easy integration, making it not just a place to manage wealth, but a home. For family offices, these cultural and lifestyle considerations offer a compelling mix of luxury, security, and quality of life, making Monaco a highly desirable base.

    Service Providers

    Financial reporting system

    Elysys Elysys

    Monaco
    Consolidated Reporting

    Elysys is a secure, scalable and integrated enterprise software for treasury and investment management professionals working under several regulatory and compliance frameworks.

    keesystem

    KeeSystem KeeSystem

    Switzerland
    Portfolio Management

    Our mission is to simplify the daily life of wealth management professionals through KeeSense, our portfolio management solution, automatically connected to your ecosystem.

    Key numbers

    At a glance

    Evaluate key statistics to compare Monaco with other regions

    Comparison Monaco

    Corporate Income Tax Rate

    25%

    Henley Passport Index 2023 Rankings

    10

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    FAQ

    Q

    What is the financial regulatory authority in Monaco?

    A
    Monaco's primary authority for financial activities is the Commission de Contrôle des Activités Financières (CCAF). Monaco also relies on the French regulatory body, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), to oversee banking activities.

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