Monaco is a small city-state that shines like a diamond between Nice and Italy on the French Riviera, which fascinates everyone with its nature, air and sea. It’s like a diamond because it’s the richest country in the world, where the ultra-rich and billionaires live, notable for its extreme luxury lifestyle. Monaco, also known as the ‘billionaire’s playground’, is the smallest country after the Vatican, with an area of 2.02 square kilometers. Let’s just say that the area of Göztepe district of Kadıköy district of Istanbul is 1.78 square kilometers to make you think. . And Monaco has managed to become the richest country by packing an astonishing amount of wealth into 2.02 square kilometers. The biggest reason behind this, of course, is that the ultra-rich live in this country. So why do billionaires live in Monaco?
The gross national product per capita in Monaco is $234,317. In second place, Liechtenstein, this number is 169,260 dollars. So Monaco is by far the richest country in the world. Its population is 39 thousand and almost all of these 39 thousand are rich. Its nature and location are not the only reasons why the Principality of Monaco attracts the ultra-rich.
Monaco is almost equal to some districts of Istanbul in terms of surface area. Photo: FreepikMonaco is a tax haven for the rich. Income tax was abolished in the country in 1869. Since then, it has been a place preferred by the ultra-rich. Other individual and corporate taxes are also very low in the country. The tax system in Monaco was designed to encourage capital transfer and income generation without heavy taxation. This tax environment paved the way for individuals and companies to move their investments to Monaco and for the country to achieve economic success.
It’s not just taxes…
There are many famous names living in the country along with millionaire business people. Especially Formula 1 pilots and tennis players are concentrated in Monaco. World champion German pilot Nico Rosberg and Serbian tennis player Novak Djokovic live in Monaco. Apart from these names, Naomi Campbell, Bono, Leonardo DiCaprio, Elton John and Kate Moss are among the famous names who have a home in the country.
In addition to tax exemption, rich people prefer Monaco because of the lifestyle in the country. Along with the mild and mild weather throughout the year, the political stability in the country, prestigious events such as the Grand Prix and luxury living are the biggest factors.
Monaco is also an international banking center that stands out for its political stability. According to the data of the World Bank, it is in the top 40 in the list of countries with the best political stability.
Yachts and boats are a part of ordinary life in the country. Photo: FreepikSecurity is one of the most important criteria for the ultra-rich who own cars, yachts, jewelry and real estate. In the principality, which is called “Europe’s safest square kilometer”, there is one police officer for every 100 people, and the principality is monitored by cameras 24/7.
Monaco is an exclusive holiday destination. While casinos were an important factor attracting tourists to the country for a period, today they only contribute 3 percent to the economy. The country’s biggest sources of income are the sale of postage stamps, alcohol and tobacco tax and registration fee. This diversity in income sources enables the country to move its economic development beyond traditional sectors.
In Monaco, where seeing sports cars on the streets is an ordinary part of daily life, the real estate sector is one of the investment areas that attract the most attention of investors. Although the city is small, the demand for luxury real estate structures designed by award-winning architects is increasing day by day. According to the 2022 Real Estate Monitoring Report, In 2021, real estate prices in the principality reached a record high, rising to 52 thousand dollars per square meter.The most expensive real estate sales in Monaco took place in the capital, Monte Carlo.
Yachts are a big part of life in Monaco
Yachts also have a large share in the country’s real estate sector. Many real estate companies in the country sell second-hand yachts as well as apartments and villas.
Another reason why billionaires choose to live in the principality is that the country has world-class healthcare, good schools, numerous Michelin-starred restaurants, the most famous spas and luxury fashion shops. Moreover, the principality has major events such as the Monaco Grand Prix and the Monaco Yacht Show. important galas and cultural and artistic activities are organized. The pristine beaches of Monaco and the seas that have been preserved to this day are also one of the most important factors that attract the billionaire’s attention.
Yolande Barnes, the manager of Savills World Research, which provides real estate consultancy services, stated that the ultra-rich preferred Monaco because of the offshore tax exemption and said, “This is the right location for the world’s richest people. Because they don’t want to feel left out,” she says.
Sources: CNN, Medium, World Population Review, Statista, Seemonaco.com
