Any experience from Monaco as domicile and tax residency?

[Verbatim]

I have been collecting information on Monaco.
I am still not clear on the following questions:
1. Do you always have to keep minimum balance 500k (the initial deposit for getting the residency) or are there ways around this?
2. Can you obtain a tax residency certificate? There is information on the domicile certificate (not same as tax residency) but the only information on the tax residency certificate is about French citizens. As a non-French citizen, can you obtain this certificate?
3. Do you have to open a company in Monaco to obtain the residency? These have a 33% corporate tax rate if over 25% of revenue is from outside Monaco. Some sources say it is necessary, others not.
4. Does Monaco tax foreign income? If you set up an offshore company with 0% corporate tax rate, can you freely obtain salary, dividends without paying tax? There is no income tax in Monaco but what about CFC rules?
5. Is there any housing available for up to 2000 euros per month?
6. How do you pay social contributions to get health insurance? Can you receive a salary from your offshore company and make social security contrtibutions based on this salary? What are the minimum social security contributions for Monaco?
7. If you actually live in Monaco e.g. for 1 year and then leave Monaco, can you keep the bank account? What is the minimum balance that should be on this bank account, if any?

Thank you for the information, apologies for the too many questions

 

[Sols]

1. No practical way around it.
2. Yes.
3. No.
4. No. You can live tax free in Monaco by having a foreign company pay you dividends.
5. No.
6. You would normally not structure the income like that in the first place. You're much better off living on dividends rather than salary.
7. They will eventually close the account if you aren't resident, unless you keep very large sums (in which case you might as well put your money in Switzerland or some place not full of Monegasque bankers).

If you're not comfortable parting with at least 500,000 EUR (in reality at least a million) to be kept with a bank in some long-term investment plan, Monaco is probably not going to be a fun place to live.

 

[Verbatim]

1. No practical way around it.
2. Yes.
3. No.
4. No. You can live tax free in Monaco by having a foreign company pay you dividends.
5. No.
6. You would normally not structure the income like that in the first place. You're much better off living on dividends rather than salary.
7. They will eventually close the account if you aren't resident, unless you keep very large sums (in which case you might as well put your money in Switzerland or some place not full of Monegasque bankers).

If you're not comfortable parting with at least 500,000 EUR (in reality at least a million) to be kept with a bank in some long-term investment plan, Monaco is probably not going to be a fun place to live.

Very good information, much appreciated.

 

[ikan]

5. some rent a studio in Monaco for let's say 2 - 3.000 euros/month to fit residency program, but in fact reside next by on the french riviera with better-wider accomodation. You can also moore you boat in one of the 2 harbours and get domicilated at the harbour master office.

7. if you stop residency, you account will turn to be non resident one. Privates Bankers will help you to find prompt soultions and bring guidance.

21. In Monaco or next by, nobody bothers if you drive your +200ke car. Tax office doesn't care about your luxury car.

22. It is very safe location for your family, and your assets.

23. not only bankers are living in Monaco. World wide citizenship are established there, with many international brillant, smart people, company owners, businessmen. Also some extra-rich.
Last French Riviera can be a nice palyground for living, climat, schooling, intertainement, fooding., boating, skiing...

 

[BigUnicorn]

Good replies. Just wanted to add if you're young is a bit boring and quiet beside some clubbing and exchanging supercars with local friends.

 

[Konstanz]

There is no better place to live tax free than Monaco, if you can afford it.
You can live normal life. Monaco is in Shengen, many people travel a lot, have villas in nearby france or italy and live nice life.

 

[mediumrare]

1. Do you always have to keep minimum balance 500k (the initial deposit for getting the residency) or are there ways around this?
2. Can you obtain a tax residency certificate? There is information on the domicile certificate (not same as tax residency) but the only information on the tax residency certificate is about French citizens. As a non-French citizen, can you obtain this certificate?
3. Do you have to open a company in Monaco to obtain the residency? These have a 33% corporate tax rate if over 25% of revenue is from outside Monaco. Some sources say it is necessary, others not.
4. Does Monaco tax foreign income? If you set up an offshore company with 0% corporate tax rate, can you freely obtain salary, dividends without paying tax? There is no income tax in Monaco but what about CFC rules?
5. Is there any housing available for up to 2000 euros per month?
6. How do you pay social contributions to get health insurance? Can you receive a salary from your offshore company and make social security contrtibutions based on this salary? What are the minimum social security contributions for Monaco?
7. If you actually live in Monaco e.g. for 1 year and then leave Monaco, can you keep the bank account? What is the minimum balance that should be on this bank account, if any?

ad 1.: you don't have to hold the 500k as a deposit, a stock portfolio is fine. Be prepared to stock up if market value goes down. A portfolio of 700k in blue chips should be sufficient and give you a return of 8% if carefuly selected.
ad 5.: there are very smalll studios (~20 sqm) available for 2-2.5k

 

[Konstanz]

Also there is a problem with 1 to open an account. Monegasque banks don't have big risk appetite. So, it can be a problem to open an account with 500k. Most require much more 1-5m
5 - yes, there is an option for a Studio, but only in case if you immigrate as a single person. If a couple or with kids, you would need larger apartment.

 

[Verbatim]

Also there is a problem with 1 to open an account. Monegasque banks don't have big risk appetite. So, it can be a problem to open an account with 500k. Most require much more 1-5m
5 - yes, there is an option for a Studio, but only in case if you immigrate as a single person. If a couple or with kids, you would need larger apartment.

What about if you get an address and a regular job in Monaco? In this case you don't need to get a reference letter from the bank, nor do you need to make a large deposit/investable money. Can you get a bank account in this case? I would expect they have to give you a regular bank account if you are a resident.

 

[Sols]

Most people with "regular jobs" in Monaco live in France (although I suppose some might be Monegasque citizens). A foreigner moving to Monaco must show proof of sufficient funds. While this might not be officially written down anywhere, it is in reality 500,000 EUR which should preferably be deposited with a local bank. Many local banks ask for/expect a few million nowadays.

Regular retail banking is not very common at all in Monaco. It's even a bit of a problem for some residents in Monaco, as it can be difficult to do some basic day to day banking with the local banks. Debit and credit cards can be hard to get and sending smaller sums of money (i.e. to friends and family) can be tedious, having to go through your personal banker for everything.

Monaco is a boring place, even if you're rich. It'd probably be absolutely miserable to live there without being worth a few million.

If you want to live in a place with low or zero tax, you'll find far easier options in for example Andorra, Malta, Cyprus, Ireland, and Portugal.

 

[Konstanz]

What about if you get an address and a regular job in Monaco? In this case you don't need to get a reference letter from the bank, nor do you need to make a large deposit/investable money. Can you get a bank account in this case? I would expect they have to give you a regular bank account if you are a resident.

Forget about job option. You would need deposit money to bank

 

[Konstanz]

Most people with "regular jobs" in Monaco live in France (although I suppose some might be Monegasque citizens). A foreigner moving to Monaco must show proof of sufficient funds. While this might not be officially written down anywhere, it is in reality 500,000 EUR which should preferably be deposited with a local bank. Many local banks ask for/expect a few million nowadays.

Regular retail banking is not very common at all in Monaco. It's even a bit of a problem for some residents in Monaco, as it can be difficult to do some basic day to day banking with the local banks. Debit and credit cards can be hard to get and sending smaller sums of money (i.e. to friends and family) can be tedious, having to go through your personal banker for everything.

Monaco is a boring place, even if you're rich. It'd probably be absolutely miserable to live there without being worth a few million.

If you want to live in a place with low or zero tax, you'll find far easier options in for example Andorra, Malta, Cyprus, Ireland, and Portugal.

It's not boring place. Not much more boring than Cyprus, Malta, Andorra?? Monaco is situated in French Riviera so you have easy access to all continental France, Italy and other countries.
When moving to Monaco you shouldn't just think about Monaco, because most residents spend most of their time outside Monaco (in France, Italy).

 

[Sols]

It's not boring place. Not much more boring than Cyprus, Malta, Andorra?? Monaco is situated in French Riviera so you have easy access to all continental France, Italy and other countries.
When moving to Monaco you shouldn't just think about Monaco, because most residents spend most of their time outside Monaco (in France, Italy).

If the best thing about Monaco is the area around it that you can go to when you leave Monaco maybe that says something.

But opinions are of course opinions. There are people happy on islands, happy in mountains, and happy in Monaco.

 

[gnud]

You can get a residency in Monaco through a job. You probably wouldn't be able to open a bank account in the principality, if you don't have the 500k, but you'd live tax free like any other resident. You just need to consider that you'd have to pay one of the highest rents in the world. As an employee, you can open a bank account in France or just about anywhere in the EU ...

Monaco doesn't exist in vacuum, you live on the Riviera, not just in Monaco, people cross the virtually nonexistent border on a daily basis. There are plenty of things to do you just need to know about them
You need to recognize that it's a different lifestyle on the Riviera than living in e.g. London.

 

[Verbatim]

You can get a residency in Monaco through a job. You probably wouldn't be able to open a bank account in the principality, if you don't have the 500k, but you'd live tax free like any other resident. You just need to consider that you'd have to pay one of the highest rents in the world. As an employee, you can open a bank account in France or just about anywhere in the EU ...

Monaco doesn't exist in vacuum, you live on the Riviera, not just in Monaco, people cross the virtually nonexistent border on a daily basis. There are plenty of things to do you just need to know about them
You need to recognize that it's a different lifestyle on the Riviera than living in e.g. London.

And what kind of jobs are available in Monaco?

 

[gnud]

And what kind of jobs are available in Monaco?

Literally all kinds of jobs. It's a standalone country. From a baker to a banker. But it's tiny, so opportunities are limited, and often you need to speak French.