Obtaining tax residency in Monaco

[Gediminas]

Dear readers,

I would like to share some information about the tax residency of Monaco, its do's and don'ts.

First of all, you should ask yourself - can I afford it and is it for me?

• Very expensive real estate and rentals. The cheapest options are small studios, which, sometimes, isn't big enough for 1 person. This is the most crucial part of your application for the tax residency. If you want to have a safe bet - buy it, so they will clearly see your connection with the Monaco and willingness to stay. 1 bedroom apartment costs will start from 1,5m EUR and if you have a family (wife and/or kids), they should get it as well. Usually, one person has to have around 25 sq. m. of space to be eligible for this.
• Getting a bank account. They do very very deep Due Diligence. The banks don't have any risk appetite at all. If there is something fishy about you - they will decline you without hesitation. If you are an immigrant from a risky country (like Arab or so) - your chances are very low. The minimal deposit will start from 500k, very often they will ask for more, like 1-2-5m. You will have to freeze (invest) this money until you are a resident there.
• To be eligible, if you are not a citizen of EEA or Swiss, you have to get a permanent visa from France.
• To get your residency card, you will have to stay there at least 3 months, but if a Tax Residency Certificate is necessary for you (most likely you will be asked to provide it by your home country), you will have to stay there at least 6 months per year.
• French people and Americans are unable to receive their tax advantage in Monaco.

The tricky part of this process - even if you get a rental in Monaco, that doesn't necessarily mean you will be able to get a bank account there. And without getting a bank account, you won't be able to get a tax residency there. Like a cat and a mouse game. And it can take a long time until you find a bank account who is willing to open the account for you.

On the other hand, it's a safe bet to buy property in Monaco, a very good investment in general.

Feel free to ask any questions if you have or share your knowledge about it.

 

[Martin Everson]

I can agree with what you said

Yes Monaco real estate is expensive you are looking at well over 30,000 euro a sqm in cheapest districts . However whatever shoebox you buy whether you live there or not is a good investment for capital appreciation but not for rental yield.

I must add that if anyone is planning to move to Monaco then your must visit beforehand. I took the train from Paris directly to Gare de Monaco and spent a few nights in Monaco once. I visited Barclays there and asked what they look for to open a new account. They are looking only wealth management clients and north of 5m is what I was told in my case. May be different for EU resident folk.

 

[countryfree]

Actually, there are no shoeboxes in Monaco.
The apartments are larger than In Nice. When a real estate developer has a choice between a building with a few large apartments, or one with many small apartments, he'll go with the first option. They have no interest at all for small fish in Monaco.

 

[andres33]

Around minimum 5,000€/month for a small property. A bank must determine if your equity is large enough for you to be able to live there long-term.
In general, from 1M € successful immigration is guaranteed. Depending on the bank you have chosen and the impression you give. If you have a clean criminal record and have never been bankrupt. Process for EU citizens around 6 weeks. Minimum stay is 3 months. Monaco strictly imposes this rule and control it. Monaco is one of the most controlling states in the world.

 

[Silvio]

In order to apply for residency you need a letter from a bank in Monaco stating that you are able to sustain yourself financially.
Some banks are willing to do that for less than 6 figures but you will need to approach several. You won't necessarily need to invest that money, depends on the bank.

I join @Martin Everson's suggestions - you must visit for a few days\week before you even think about moving there. It's incredibly boring and if you're not very rich- it's not for you.
And even if you're very rich there are much better tax-free places to live at... You will need to actually be there to be a resident and you can't fool around- there are CCTV cameras every 5 meters.
As Jack Nicholson said, "Monaco is Alcatraz for the Rich"

 

[Konstanz]

In order to apply for residency you need a letter from a bank in Monaco stating that you are able to sustain yourself financially.
Some banks are willing to do that for less than 6 figures but you will need to approach several. You won't necessarily need to invest that money, depends on the bank.

I join @Martin Everson's suggestions - you must visit for a few days\week before you even think about moving there. It's incredibly boring and if you're not very rich- it's not for you.
And even if you're very rich there are much better tax-free places to live at... You will need to actually be there to be a resident and you can't fool around- there are CCTV cameras every 5 meters.
As Jack Nicholson said, "Monaco is Alcatraz for the Rich"

I would not agree it's boring. It's super nice, safe and nature around beautiful and weather is wonderful. It's not like life in a desert in Dubai. CCTV all around is advantage in terms of security if your are rich.
I think Monaco is a serious residency choice if you really ready to live there.. and of course sufficient income

Advantages:

No income tax
No CFC rulings
No controlled foreign entity issues
Life in South of France.. weather, sea, mountains, Italy..
All main EU main cities easy reachable through Nice airport
Totally safe
Restaurants, lots of sport activities

Disadvantages:

You have to live 180 days to get tax certificate
Expensive real estate to rent/buy
Deposit at least 500k into Monaco bank

 

[JohnLocke]

I would like to share some information about the tax residency of Monaco, its do's and don'ts.

First of all, you should ask yourself - can I afford it and is it for me?

I have to agree with you and the rest of this thread. I just wonder, how many around here have in reality considered to relocated to Monaco? Sirry but I believe it may only be a fraction who is around here that may afford it in regards to the money but also in regards to family and close relatives.

 

[Martin Everson]

Actually, there are no shoeboxes in Monaco.

I have never checked out Nice but if they are smaller than they are in Monaco then the real estate developer should be arrested for wilful endangerment.

In order to apply for residency you need a letter from a bank in Monaco stating that you are able to sustain yourself financially.

...and don't the banks in Monaco know this and use this to there advantage.....I call it blackmail or extortion at the very least.

You will need to actually be there to be a resident and you can't fool around- there are CCTV cameras every 5 meters.
As Jack Nicholson said, "Monaco is Alcatraz for the Rich"

Yup 100%, with number plate recognition etc when you enter and leave monaco and cameras everywhere they can track your entire visit and movement from entry to exit. I thought I was the only person that noticed the share amount of cameras sometimes 4-6 cameras grouped together. I am sure they must have facial recognition technology.

 

[daxbr]

Safe assumption the same kind of surveillance extends to financial matters and it is shared.

 

[Konstanz]

Safe assumption the same kind of surveillance extends to financial matters and it is shared.

Well, but there is no income tax, cfc and etc.. So, if you do nothing illegal there is nothing to worry about if they collect. About sharing I am not so sure, because genuine Monaco residents are very protected by local government. I think residents are happy about these CCTV, that way it makes the only country in the world were you can relax and feel totally safe all the time.

I would not agree "Monaco is Alcatraz for the Rich" . 180 day ruling is general term. If you do not spend more time in some other country than Monaco, you should be fine.. I think you don't need to spend 180 days if you travel all the time for business etc.. I don't think Monaco is the place "hard to live". It's more about when you imigrate to some shity island country like Malta or Cyprus or islamic country UAE etc and you have to stay there.. If you can afford life in Monaco, there will be no problem about staying these 180 days...

 

[Joe Blasco]

Gentlemen, I am starting to doubt your sanity. No tax authority in the world , unless you are Pablo Escobar , will try to follow your tracks 24 hours, 365 days per day. Keep your papers in order, try to live modestly ( don t buy that extra Tesla or Ferrari if your declared income shows you cannot afford it) and RELAX...

 

[Martin Everson]

No tax authority in the world , unless you are Pablo Escobar , will try to follow your tracks 24 hours, 365 days per day.

You would be surprised actually. Governments already follow their citizens mobile phone signals and card spending habits to build a picture of you. There maybe nobody sat at a screen 24/7 watching you personally but the data, images, phone signal etc is collected already it is just a case of them using it. In time with advanced facial recognition, AI etc it will be fully automated surveillance.

 

[Joe Blasco]

You would be surprised actually. Governments already follow their citizens mobile phone signals and card spending habits to build a picture of you. There maybe nobody sat at a screen 24/7 watching you personally but the data, images, phone signal etc is collected already it is just a case of them using it. In time with advanced facial recognition, AI etc it will be fully automated surveillance.

I ain t talking about the future, maybe in the future SKYNET will decide to exterminate all humanity, I am talking here and now. From all the persons in this forum is there actually ONE that can claim that he was summoned by the tax authorities of any country, because his cellular phone was in a country where it was not supposed to be or his trail was picked by facial software ? Give me a break....

 

[Gediminas]

You would be surprised actually. Governments already follow their citizens mobile phone signals and card spending habits to build a picture of you. There maybe nobody sat at a screen 24/7 watching you personally but the data, images, phone signal etc is collected already it is just a case of them using it. In time with advanced facial recognition, AI etc it will be fully automated surveillance.

I totally agree with you. You cannot realy hide these days. You have two alternatives: 1. Get legal residency in some country with favorible tax, legal environment; 2. Remain resident in your country and comply with all tax rulings.

 

[countryfree]

Ignore the cameras, people are very relaxed in MC. I was going out there once a month when I was living in Nice, and I've always met great people. You see the police when crossing the border, and that's it. I remember having been arrested for speeding, but the policeman let me go without a fine, as I explained I was test-driving a car I thought about buying, and I needed to find out how good it was. Great place, alas not for me, living there is just too expensive. Not only real estate. Milk is more expensive in MC than in Nice.

Also, the place is getting too crowded. Heavy traffic all day long, no parking. The whole French riviera is getting awful.

 

[John Dee]

This "tax-free zone" is created for royals from Western EU with deep-long family connections. I don't know why anybody would like to become tax resident there, if there are so many more alternatives, this one is only for "show".

 

[Konstanz]

This "tax-free zone" is created for royals from Western EU with deep-long family connections. I don't know why anybody would like to become tax resident there, if there are so many more alternatives, this one is only for "show".

Which are those better alternatives and for what reasons?

 

[Tax Cow]

Good highlights @Gediminas !

• French people and Americans are unable to receive their tax advantage in Monaco.

The popular solution for the French looking to migrate to Monaco's tax regime is a Belgian citizenship through naturalization. Timeline is 3 years from obtaining residency. With careful planning, it's possible for the French person to spend some (or quite significant) time in France while the clock is ticking.

 

[KJK]

You would be surprised actually. Governments already follow their citizens mobile phone signals and card spending habits to build a picture of you. There maybe nobody sat at a screen 24/7 watching you personally but the data, images, phone signal etc is collected already it is just a case of them using it. In time with advanced facial recognition, AI etc it will be fully automated surveillance.

Yes, the easiest and most obvious step #1 is to get your card statement. This tells so much about you, the government often doesn't need any other data (if you prefer using card to cash).

I ain t talking about the future, maybe in the future SKYNET will decide to exterminate all humanity, I am talking here and now. From all the persons in this forum is there actually ONE that can claim that he was summoned by the tax authorities of any country, because his cellular phone was in a country where it was not supposed to be or his trail was picked by facial software ? Give me a break....

We are also talking about now. I had a discussion with a lawyer, his client claimed residency in another country. The tax office (of an EU country) got some permission from the state prosecutor and got his bank statements, credit card statements - which you can expect. However they even went the extra mile and got camera shots from highway toll gateways where his car was recorded AND they went to his neighbours to ask what they know about him. I'm not kidding. Now since 2019 also all flight passenger data within EU is recorded and shared.

The only reason facial recognition isn't used yet so widely is because there is still strong resistance in Germany and other privacy-conscious countries. Many people still understand or remember how technology can be used and abused; if it weren't for IBM and public census with declaring your religion, Nazis would have a more difficult job sending jews to concentration camps.

 

[JohnLocke]

You would be surprised actually. Governments already follow their citizens mobile phone signals and card spending habits to build a picture of you. There maybe nobody sat at a screen 24/7 watching you personally but the data, images, phone signal etc is collected already it is just a case of them using it. In time with advanced facial recognition, AI etc it will be fully automated surveillance.

You say Monaco with all their wealth and rich people do the same like China and most parts in Europe?