How to become a resident of Monaco and what are the advantages?
Monaco makes you dream with its living environment that combines an incomparable situation and unparalleled political stability? You are right. The Principality of Monaco has everything to seduce: its way of life, the high incomes of its residents and its advantageous taxation. But an installation on the rock can not be improvised, because this unusual place has its specificities. So, how to become a resident of Monaco? Zoom on one of the motivations that encourages to choose the Rocher and the formalities to settle there.
Monegasque taxation: an important argument
f the Principality is no longer part of tax havens, it remains very attractive in terms of taxation:- Living in the Principality of Monaco means being exempt from income tax, except for residents of French nationality.
- Rates of succession and transfer are particularly low, especially in the direct line where they are zero.
- Real estate is not subject to the property tax or the housing tax. There is just a tax due to the Registration Division, when signing a tenancy agreement (this represents 1% of the annual rent + charges)
- Companies, however, owe no tax, except in the case where they realize more than 25% of their turnover abroad. In addition, new businesses are exempt from profit tax (ISB) for two years and enjoy progressive taxation over the following three years.
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The conditions for living in Monaco
Administrative formalities
To live in this city-state, it is necessary to obtain a resident's card issued by the Monegasque authorities. Minors and adults will need a visa, if they are nationals of a non-EU country. For members of the European Union, a simple identity card or passport will be required. In any case, you will have to certify an employment contract or sufficient resources, and a clean criminal record. Last but not least, you will need to justify housing in the Principality.The real estate challenge
Finding accommodation is undoubtedly the first point to be addressed in the process of becoming a Monegasque resident. In fact, it will be necessary to have a signed and registered lease in order to file an application for residence. There are very few private offers and the use of a real estate agency, perfectly mastering the very specific market of the Rocher, is therefore essential to make your project a reality. Benefiting from access to a powerful tool, reserved for Monegasque real estate professionals, this expert will be able to select the best accommodation that meets your expectations. Note that all agencies in Monaco work on a common real estate file, so no need to consult several agencies, you will often have the same proposals.Your family
You start a new life? All members of your household are concerned, including your children. For younger children, childcare facilities are offered, including nursery school from the age of three. From the age of six, consider enrolling them in a school. Belonging to the network of "French establishments abroad", the programs are in line with those of France with some peculiarities. The intensive teaching of the English language is thus provided from kindergarten. Resolutely international, the Monegasque education system aims for excellence.Other practical arrangements
To facilitate your efforts, opening a bank account is a key step. This is not just a formality, you will have to choose the right bank, because the requirements and the services provided will be very different, whether you go to a deposit bank or a private bank.Once your home is found, consider making all subscriptions to the various water, electricity and telephony services. They are specific to the Principality: SMEG, SMEaux and Monaco Telecom.
You must also insure your vehicle and exchange your original license with a Monegasque license during the first year of residency.
As far as social security is concerned, the support of your health expenses, as well as those of your whole household, will depend on the Social Services Compensation Fund of the Prince's Government. Inquire with this interlocutor.
In addition, do not wait to alert the organization in charge of your previous social security to avoid claims. Becoming a resident of Monaco therefore requires building your project sufficiently upstream to be able to carry out all the steps. But, once this steps will be over, you will enjoy:
- an exceptional living environment on the Côte d'Azur;
- charms of the Mediterranean climate;
- a material and fiscal serenity;
- a life rich in sporting and cultural events.
