If you think of a city in Europe that the supercar is already part of the landscape of their streets, luxury stores follow each other on their boulevards and the supereyates are attached to their marinas, you are probably Thinking about Monaco.
However, luxury and exclusivity do not remain in the posture of its streets. One of the higher concentrations of millionaire population of all the Mediterranean. So much so, that the majority of its population is foreign and is one of the countries in which it is more complicated to belong to the richest 1% of its population, according to the report ‘The Wealt Report of 2024‘Prepared by the consultant Knight Frank.
Monaco’s population is not Monegasca. With an area of just 2.02 km2, the Principality is the second smallest country in the world, only behind the Vatican. According to demographic data, In 2023 it had a census population of 38,367 inhabitants, of which 21,042 citizens They are of foreign originmainly from France, Italy and the United Kingdom. This means that only 46% of the total population is of Monegasco origin.
In recent years, the percentage of the population of foreign millionaires It has been decliningbut in the 60s of the last century, they reached figures close to 70% of its population.
High density of millionaires. According to Knight Frank’s report, in Monaco there are some 13,400 people of very high purchasing power. That assumes that approximately 35% of its resident population, has a equity available to invest more than one million dollars, discarding the value of its habitual residence from that amount.
The economic data They point out that the GDP per capita of the Principality of Monaco in 2023 was 256,580 dollars, compared to the $ 33,500 in Spain, the 44,690 dollars of France or the 99,564 dollars recorded Switzerland.
In Monaco it is difficult to be “rich”. Belonging to 1% of the richest elite is not easy in any country, but being in one with the density of a millionaire per m2 that Mónaco has is even more complicated. According to Knight Frank data, to belong to the 1% richest population in Monaco, it will be necessary to have a heritage of more than $ 12,883,000.
Instead, for belong to the 1% richest in Spainthe same person would need a heritage of $ 2,468,000 or $ 5,813,000 to be considered part of that millionaire elite in the US.
No taxes and no tax havens. For decades, Monaco was considered a fiscal paradise for his low taxation and the fiscal secret that protected its inhabitants. International diplomacy has made small principality open its archives and, with it, left the fiscal paradise lists. Despite that, its residents enjoy a total absence of direct imposition. That is, there is neither IRPF nor societies for companies.
Income and assets are not subject to imposition, so there are no taxes on investment income, capital gains, dividends or yields such as worker, freelance or manager of a company.
The only taxation that can support those fortunes that have more than 25% of their activity outside Monaco is a 25% tax on benefits.
Image | Unspash (Lazar Gugleta)