Principality of Monaco Residency
How to get residency in Monaco
Beaches, Ferraris, Casinos, Diamonds, Helicopters, Security Cameras, Yachts, F1, South of France, No Crime, No Taxes. Class.
Pour vivre heureux, vivons caché.
If you want to live happy, live hidden.
Bonjour from one of the classiest places on earth. The billionaire’s retreat in Europe, Monaco is a great place to vacation, a better place to be a resident, and if you’re one of 8000 lucky Monegasque, a citizenship flag firmly planted in one of the few countries without personal taxation..
Monaco has completely opened up, and while a few years ago, you would need to be stamped in, subject to a rigorous search, and pay some money for a visa – now you can simply stroll into Monaco visa-free (assuming you have a Schengen visa or you are an EU passport holder).
How to get residency in Monaco
- Monaco bank letter stating good standing (the most important and difficult part)
- Valid Passport
- Birth certificate
- Marriage/Divorce certificates if appropriate.
- Certificate of no criminal record in the last place of residence for the preceding 5 years.
- Education/professional background and proof of wealth. Must be in French.
- Health Insurance covering Monaco (only one hospital in Monaco)
- A lease for a min of 1 year of Monaco property rental OR deed to property in Monaco.
- Electricity contract for the rental apartment/purchased property
- Residency application forms from the Surete Publique.
Residency Card + 3 Months in Monaco
Residency status requisites the PT to spend a minimum of three months in Monaco each year. Keep in mind that the PT would still need to adhere to other laws regarding residency in other counties with regards to taxation.
Long-Term Residency Card = 6 Months in Monaco
The 3-month rule applies unless the PT receives a carte de sêjour privilegie and become a long term resident of Monaco (details below) in which case you would need to demonstrate that the PT spends at least 6 months per year there.
There are essentially 3 levels to receiving residency in Monaco.
- “carte de sejour temporaire” which is the lowest level card – and is only good for one year. This does give you official residency status, but will expire if you don’t renew it properly, as well as prove you were inside the Principality for the minimum official time period of this residency provision.
- After two renewals of the first level residency pass, you can receive “carte de sejour ordinaire“. This level pass is already much better and is what the majority of what most people – who stick around for more than one year – have. This pass is good for three years and renewable once.
- “carte de sêjour privilegie” is the highest level of residency, and requires you spend half your time in the country. There are only approx. 30,000 people with any type of residency. I’ve heard that you also need to speak 2 out of the 3 languages: French, Italian or English, but couldn’t find any official documentation that states this.
How to get citizenship in Monaco
*Dual Citizenship is strictly forbidden, and not recognized for by the Principality of Monaco, therefore you would need to renounce any additional citizenship.
After the age of 18, a person who was born in Monaco of a parent who was either also born Monégasque or who had ancestors of the same branch born Monégasque but who has since renounced Monégasque citizenship can make a declaration before a Registrar provided that he/she lived in the Principality and proves that he/she has had his/her legal domicile or habitual residence there during his childhood.
In order to receive a Monaco Passport through naturalization, one would be required to send the following criteria and send their request on stamped paper:
- renounce any foreign nationality and no longer has national service to another nation
- has resided in Monaco for a minimum of 10 continuous years since the age of 18 at the time of making the application
While 10 years is the minimum for making the application, there are specific provisions written into law that allow for the Prince to waive the residency requirement if he considers the applicant to be “worthy of this favour”.
By Blood (Jus Sanguinis)
Monégasque nationality is granted automatically to children who are under 18 when their father or mother obtains naturalization or a non-Monégasque woman who survives the death of her Monégasque husband.
Why is Monaco residency so attractive?
Are you a Brit? Come live here for a few years, spend less than 90 days per year in Britain, and you could be exempt from capital gains tax. Same with many other countries of the world, who do not have a worldwide tax basis, and consider you non-collectable once you have established a new tax residency (even if that residency has low – or no taxation).
Besides being a classy place with warm beaches, great food and pretty women, there are NO restrictions for foreigners opening a bank account or buying real estate in Monaco.
There is no direct taxation, with a few exceptions:
- Any companies which operate and earn revenue from patents and literary or artistic property rights, are subject to a tax of 33.33% on profits.
- Any companies earning more than 25% of their turnover outside of the Principality, and companies whose activities consist of earning revenues from outside of Monaco
Who Can’t benefit from Monaco’s low tax laws…
Monaco has and will continue to provide the 2nd flag of Flag Theory – Residency, which can sometimes form a basis for legally minimizing avoiding tax in other countries.
However, this much is clear…
If you are taxed on a worldwide basis – a residency in Monaco would be of little help to your tax situation. Therefore, it is likely that American citizens would most likely receive no benefit from a tax perspective from planting a flag in Monaco. They would need to renounce their citizenship to eliminate their worldwide tax burden, and even then – there are laws that require filing and continued taxation.
Furthermore, French nationals unable to prove that they resided in the Principality for 5 years before October 31, 1962, are subject to the French income tax even if they have residency and live full time in Monaco.
Eritrean and Philippine citizens are two other nationalities (other than American) required to pay taxes on a worldwide basis.
Bank Accounts in Monaco
The total asset base amounts to nearly EUR 60 billion, of which 70% are non-resident funds. They are held in the following banks.
- ABN AMRO Bank N.V.
- American Express Bank(Switzerland)SA
- Banque Populaire Cote D’Azur
- Banque Privee Fideuram Wargny
- Banque Monegasque de Gestion
- Banque de Gestion Edmond de Rothschild-Monaco
- Banque du Gothard Monaco
- Banca di Roma International
- Banque Pashe Monaco
- Banque Martin-Maurel
- EFG Banque Von Ernst
- BNP Paribas
- Banca Popolare di Disondrio (Suisse)
- Barclays Bank PLC
- Banco Atlantico (Monaco) SAM
- Caisse Regionale de Credit Agricole Mutuel Provence Cote D’Azur
- Caisse Mediterraneennee de Financement
- CAIXA General de Depositos
- Coutts & Co.
- Credit Suisse (Monaco)
- Credit Mobilier de Monaco
- Credit Lyonnais
- Credit du Nord
- Credit Foncier de Monaco
- KB Luxembourg (Monaco)
- Compagnie Monegasque de Banque
- Lloyds TSB Bank PLC
- Monte Paschi Banque
- Natixis Private Banking Luxembourg SA
- Societe des Paiements Pass
- SA Lyonnaise de Banque
- Societe Generale
- Societe Marsellaise de Credit
- Societe Generale Bank & Trust (Monaco)
- UBS (Monaco)SA
UPDATE 2014: Banks now require a minimum deposit of 1M Euros. The path to residency requires a bank account, and is a critical step in the process.
The “International Formalities” department within the C.D.E. (Economic Development Chamber) may be able to assist if you wish to set up a company, establish residency, etc.
2 Rue de la Leta
MC 98000 Monaco
Tel: +377 97 98 68 68
As stated previously, you also need to make a deposit in a local banking institution. The size varies depending on who you are, and who you know.
Given the deposit required as well as the cost of the real estate and the cost of living in the Principality, Monaco isn’t the least expensive option.
However, depending on your tax situation – it might actually save you millions.