So why is Monaco so legendary? The name itself awakens thoughts of glitz, glamour, elegance and riches. But that’s just the appearance. The allure of this Principality nestled on the Mediterranean coast- is that it’s an independent state with a long history. However it is also assumed to be an integral part of the French Riviera. Thereafter we will outline just what makes Monaco so special and why it attracts countless stars from the worlds of sport, music, cinema, science and enterprise. In addition to its surface area (less than 2 km2), Monaco is famous for its numerous advantages for investors. In addition to political stability, Monaco offers a stable economic environment. The security of the real estate market and the possibility of personalizing one’s investment, make the Principality of Monaco an ideal place to invest in.
The main principle of Monaco’s fiscal system is the total absence of direct taxation on persons or on companies. The Principality’s main source of income is value added tax (VAT in Monaco is 20% as in most European countries), which is paid on goods and services in the usual way. The main attribute of Monaco’s fiscal policies is the total absence of direct taxation for Monegasque residents as there is no income tax, capital gains tax or wealth tax.
In other words, there is no property tax, no tax on housing, no inheritance tax and no gift tax. Investing in Monaco can be financially rewarding, as there is no income tax or capital gains tax on individuals residing in the Principality. In addition, there is no Monegasque estate duty on assets situated outside the Principality. The Monegasque property prices were not significantly affected by the global crisis: hence a safe market. A Monegasque real estate investment could play an interesting role regarding risk reduction. An investor wishing to allocate funds in a low-risk asset could eventually include a Monegasque property in his or her international portfolio.
Monaco is recognized for its wealth management and advice services, which support affluent residents and non-resident clients. The Principality is renowned for having a very solid and broad offering of banks in all categories, whether for investment, business or regular private use. The development of the Monegasque financial market is characterized by the increasing internationalisation of its actors respecting high professional standards. Financial professionals settling in Monaco are required to have a certified level of knowledge. With 37 banks, and more than 42 portfolio and mutual fund management companies, the banking sector constitutes a large part of Monaco’s financial activity. Bank confidentiality is one of the main principles of Monegasque banking.
A law of July 1997 guarantees protection of savers and investors. It regulates the management, transmission and advisory activity of stocks and forward financial instruments. It is one of the key reasons why international financial institutions have established themselves in Monaco to develop activities of financial management and investments. This development nevertheless takes place in a context of great security.
The entire surface area of the Principality is under camera surveillance, but security is not overbearing. The police are discreet, but trained in such a way that anything detrimental to the harmonious atmosphere in Monaco is forbidden. Begging is non-existent, indecent clothing is prohibited and traffic laws are rigorously enforced. With one police officer for every 100 residents, the rate of delinquency is consequently very low. As one jeweller put it: “The jewels of the most well-known jewellers were made to be worn – even in the street and not to be left in a safety deposit box”. In Monaco, this is not an issue.
Confidentiality of information collected by banks and portfolio management companies.The international School of Monaco is situated in newly renovated, air-conditioned premises on the Quai Antoine 1er. Classes provide for children from their earliest years right through to the end of secondary school. Students traditionally graduate with excellent scores, and are offered positions in highly ranked universities throughout Europe and North America. In past years, the ISM pass rate in the IB Diploma exams has been 100%. ISM offers a distinctive bilingual programme where English and French are given equal value and where, from their earliest years, children learn simultaneously in these two languages. Bilingualism is known to have a positive effect on intellectual growth and enriches and enhances a child’s mental development. The IUM, or international university of Monaco, is the only university which provides a business education fully taught in English on the Cote d’Azur. With 60 nationalities represented in the student body and faculty, it is the premier institution for higher education in the Principality of Monaco. The university has Bachelor programmes in business administration and communication & entertainment management, Master of Science programmes in international management, marketing, finance, sport and luxury. MBA and DBA programmes are also run at the IUM.
Monaco, along with Liechtenstein and Vatican City, is one of just three states in Europe where the monarch continues to play an active role in day-to-day politics. His Serene Highness Prince Albert II, the reigning monarch and head of state, was born on March 14th, 1958. He married the Olympic swimmer Ms Charlene Wittstock on 1 & 2 July 2011, and she has since been referred to as Her Serene Highness Princess Charlene of Monaco. Under what is known as a constitutional Monarchy, executive power is held by the Prince, and legislative power is divided between the Prince, who initiates laws, and the National Council (equivalent to the state parliament), which votes on them. The Minister of State (Monaco’s equivalent to a Prime Minister) and the National Council directly refer to the Prince for the state’s administration.
Judiciary powers also belong to the Prince, who has executive authority in the Principality’s courts and tribunals. Any revision of the Constitution must, however, be jointly agreed by the Prince and the National Council. The Prince represents the Principality in all foreign relations. Prince Albert II is especially very active in global environmental affairs, and to this end, the organisation bearing his name, the Prince Albert II Foundation was formed in 2006, dedicated to the protection of the environment and the promotion of sustainable development on a global scale.