People often associate Monaco with wealth and life of luxury, and for a good reason. This city state had everything going for it to become one of the richest countries in all of Europe. The statistics back up this stereotype of a rich nation with rich citizens – Monaco has the highest GDP capita of all countries on the face of earth. The entire country’s population is no more than 40,000, so some of you might be asking the natural question: how did Monaco achieve the status of the richest country in the world? In this article, we will explore the decisions and conditions that made it possible for a small nation state to rise to such economic heights.
Tax is probably the biggest reason. Monaco was one of the first ‘tax-havens’ of the world. It has no income taxes for individuals, and minimal tax rates for corporations, which attracts a lot of billionaires and corporations trying to save money on their taxes. On the other hand, thanks to its small size, Monaco doesn’t spend much on infrastructure and common civil services, so the reduced tax revenue is more than enough to cover all the costs.
Monaco first stopped collecting all income taxes way back in the 19th century. This attracted highly paid professionals to the country. The billionaires followed, because Monaco also has very low property tax, inheritance and other taxes. This allows the rich and powerful to retain most of their wealth. Currently, the citizens of Monaco are made up of many different nationalities. Specifically, you’ll find people from over 100 different countries. Monaco is home to many celebrities as well, especially from the world of sports. For instance, the F1 driver Lewis Hamilton is a citizen of Monaco. Also, Novak Djokovic is a citizen.
However, the tax benefits is not Monaco’s only draw. It also attracts many people with its convenient location in the heart of Europe, and its warm weather. Monaco is located in the South of France, where weather is very pleasant throughout the year. We should also mention the fact that Monaco is home to many luxurious hotels that are some of the best in the world.
Monaco is probably the most famous for entertainment. There are many casinos there, where people can enjoy the thrill of gambling. However, you don’t have to be a billionaire to test your luck, you can do so from the comfort of your home. Just go to a luxury casino available online. There are also many poker tournaments hosted in Monaco, so it’s a favorite destination of many poker players as well.
When we talk about entertainment in Monaco, we should not forget to mention the Gran Prix. It is probably one of the biggest sporting events in the world, and it takes place in Monaco. Tourists from all around the world visit Monaco just to get a chance to enjoy this show. It’s not unusual to see million-dollar cars in the streets. Monaco is home to some of the world’s richest people, so luxury cars are not a surprise here.
In general, people like the peacefulness and stability of Monaco. The tiny country has a stable government, highly educated populace and rational policies. Its biggest advantage is that, unlike other tax havens, it is located in the heart of Europe. It takes just a few hours, sometimes not even that, to reach the biggest cultural centers of Europe from Monaco, and vice versa. The easiest way to visit Monaco is to do so from the Nice Airport in France.
Monaco also has a burgeoning financial sector. Billionaires need wealth managers and advisors to manage their money. Citizens of Monaco include financiers who can do just that.
The only problem with Monaco is the high living costs. However, considering how much the billionaires save in Taxes, the living costs are the least of their concerns. Still, the real estate prices are very high, because the country is very small and livable space is limited. It’s not unusual for roomy apartments in Monaco to cost upwards of a million, or even more.
Since Monaco is a port where rich people live, naturally the yachts are a big business as well. Boats of many different sizes stay in the harbor. Sometimes people even rent them to use yachts as legitimate livable spaces.