Although smaller than New York’s Central Park, the Principality of Monaco is home to 12,000 millionaires. An alluring coastline that attracts the elite offers splendor Mediterranean views and luxurious homes. So, if you’re looking for a similar lifestyle, then moving to Monaco is definitely a good choice. Here is a complete guide on moving abroad for U.S. citizens.
Settled in Côte d’Azur, between Italy and France – only 12 miles away from Nice, stands one of the last principalities in the world – Monaco. This tiny sovereign city-state famous for its lavish wealth, casinos, and glam events like Yacht Show and Grand Prix are only a few of the reasons why famous people choose it for the home.
It’s No Secret – Monaco Is One of the Wealthiest Countries in the World Where Third of Population Are Millionaires
Monaco’s total area is just 0.78 square miles, where 38,350 citizens live. Today, a third of the population are millionaires, and according to United Nations Data, Monaco’s GDP per capita is the second highest in the world and amounts to $165,420. Those figures place the Principality among the top four countries (Liechtenstein, Luxembourg, and Bermuda are the other three ones) in the world that have higher GDP than $100,000 per capita.
The Principality Is Investors Heaven – No Income Tax, and Other Incentives
Residents of the Principality had enjoyed great tax incentives since 1869, when a personal income tax was abolished. Moreover, the permanent residents of the Principality are not obliged to pay capital gains taxes nor net wealth taxes. And the list of taxes not necessary to pay becomes even longer:
- No property taxes for a realty owned by individuals or legal entities. The rental properties are taxed only by 1%.
- No taxes on dividends, and
- No general corporate income taxes.
All these mentioned incentives attracted investors and business owners all around the world to the Principality since they found that moving business to Monaco can increase their profit. If this is your plan, make sure to check how the Welcome Office can help. Still, when it comes to rules on taxes, it is highly recommended to consult the Department of Tax Services in the Principality and the IRS too. Depending on the citizenship and whether you’re an employer or employee, the rules differ.
Can I Move to Monaco? How to Become a Resident of the Principality and Get Permanent Citizenship?
Becoming a resident of the Principality differs depending on the nationality. Some general rules for all applicants are being older than sixteen and intended to stay in Monaco longer than three months in a year. If those two basic requirements are fulfilled, the next step is to apply for a residence permit issued by Monégasque authorities. Then meeting the following rules related to accommodation and income. However, if you’re a US citizen, you will need a visa first to be eligible to enter the territory of Monaco. Here is what you need to do regarding this.
US Citizens Don’t Need Visas to Be Able to Travel to Monaco, But Residents Do
All non-EU citizens that are not part of the Schengen agreement are required to apply for a visa first to be able to enter Monaco at all. Luckily, USA citizens are not required to apply or have visas to enter the territory of the Principality. However, the residents might need visas. To be completely sure, contact the closest French Embassy in charge of issuing visas for the Principality, and ask for advice on what documents are needed to travel abroad.
Accommodation Should Be Large Enough for All its Residents
There are several possibilities of proofing your accommodation in the Principality, here are some of them to help you prove place of residence:
- Show the proof of property ownership, or renting the property, or
- Showing proof that the company you’re working for or own owns the property, or
- Staying with a close relative like spouse or partner – moving to another country for love will never be easier.
Sufficient Finances Are Another Requirement to Meet
Although the Principalities authorities are pretty tolerant when it comes to providing proof of sufficient finances, the potential residents are still obligated to give the information. Accepted proofs of financial stability are:
- Salary amount, or
- Income-based on professional, commercial activity, or
- Sufficient savings – the sum is not defined and is judged by banking establishment in the Principality which provides the reference,
- The amount of financial support provided by a relative, partner, or spouse.
Proof of No Criminal Background
Another indispensable proof to submit is no criminal background. All Americans moving to Monaco are obliged to provide authorities with a copy of criminal records – FBI Background Check. In case you lived in several different countries before you applied for a residence permit in Monaco, you should get similar proof of the last two countries you’ve lived in the five years prior to arrival in the Principality. So, ensure to include this task into your relocating abroad checklist too.
What Are Permanent Citizenship Requirements to Meet?
Every resident that lived in the Principality for ten years can apply to HSH the Sovereign Prince, for naturalization as a citizen of Monaco. To finish the whole process, it is necessary to fulfill other two conditions:
- Being exempt from military service obligations in the origin country,
- To renounce the previous nationality.
You’ll Want to Have a Bank Account in Monaco
Once you’ve obtained the residence permit, you’ll be eligible to open a bank account. The banking system in Monaco is a thriving one, and there are numerous private banks that provide their clients privacy and data protection and high safety standards. Many banks will require a deposit starting from $300,000. So, if you’ve ever wondered how rich do you need to be to live in Monaco, here’s your answer!
What Documents You Need to Open a Bank Account
To open a bank account, you’ll require to submit these documents:
- Valid Monegasque resident card,
- Monaco address, or fiscal residence,
- Proof of earnings or status,
- Proof of health insurance,
- Origin of the funds,
- Lease for the acquisition of the property for at least 12 months.
So, once you get all those documents, the next step is to translate them into French. Another thing to keep in mind is that every bank has its own criteria and rules, and they can always request some other way of proof, like joint accounts, for example. So make sure to check with the bank for all the details.
Housing Options: Property and Rental Prices
Stunning luxurious villas, and elegant apartments, are the perfect description of housing offer in the Principality, which is, following Honk Kong, the most expensive residential market in the world. So, when house hunting expects high prices of properties and opulent amenities.
How Much Money You’ll Need to Buy a Property?
For example, according to the Numbeo data, you should set aside from $6,000 to $9,000 per square foot to buy a one-bedroom apartment. The prices are even higher when it comes to houses, and a couple of million dollars is an ordinary amount to spend on buying them.
Health Insurance Works Same Like in France
Healthcare systems in Monaco function like in France. Every citizen is obliged to have some type of health insurance, whether it is a public or private policy which is the most common choice of Monaco’s citizens. The public system is funded through taxes, meaning that every resident has to contribute and also have the right to use it.
The Monegasque public healthcare system reimburses between 70-100% of the cost of specific procedures and treatments and includes:
- Primary and specialist treatment,
- Lab work,
- Dental care,
- Pregnancy and childbirth,
- Rehabilitation,
- Specific prescriptions.
Still, keep in mind that Monaco is not a part of the European Union, so this public health insurance won’t be valid in other European countries. So, the best solution when deciding to live overseas is to combine the states and private health insurance. That’s how you’ll be sure to get all the assistance in case you need some. So, explore the insurance providers and contact them in time to check what your options are.
Language Barrier Won’t Be a Problem Since English Is Widely Spoken
Believe it or not, in the second smallest country in the world, there are four different languages widely spoken. Monégasque – which is considered the national language of the country, French, Italian, and English, are the most common languages heard in the Principality.
Since a third of the population are expats, and most of them are from English-speaking areas, breaking the language barrier won’t be a problem, as well as finding expat communities.
Still, if you want to learn a language abroad, then living in the Principality is the perfect opportunity to learn some of the most commonly used European languages. Start the learning process following tips for learning a new language, and take individual classes with a tutor, and soon you’ll excel at the new skill.
Is Monaco a Good Place to Live?
Living in Monaco is definitely a privilege worth relocating across the world. Not only does this city-state offer great conditions for investments and high-paid positions, but it also gives some of the highest quality of life, making it one of the best places to live in Europe.
So, if you have enough funds to embark on this glam European adventure, the Principality will definitely be one of the best countries to live in. It is ideal to settle in if you’re looking for the best places to live abroad with family or searching for some of the best places to retire in Europe.
Is it Expensive to Live in Monaco?
High costs of living are something to expect in the Principality. For a family of four, the average monthly cost of living is $5,700 – without rent. And this is only one example. If we compare the prices between Monaco and New York – which is considered for one of the most expensive cities in the world, will find that rental prices are 59.73% lower than in the Principality, while the consumer prices, including rent in New York, NY are 41.98% lower than in Monaco. Although it’s expensive, it is still one of the best European countries to live in.
Stress-Free Moving Overseas Is Possible With Assistance of Professional International Moving Company
If you’ve decided to move to one of the most prestigious destinations in the world, finding a reliable overseas shipping company is the easiest way to deal with the whole relocating overseas process. This is also the best way to avoid any relocating stress. No matter if you want to move your Porsche, Lamborghini, or a valuable collection of art pieces, with the help of an overseas moving company, everything will get delivered to your new home address.
Picking the company capable of providing you with all needed overseas shipping services is definitely a good idea. Contact a reliable company and start with booking packing services that entail custom crating for boxing up valuable pieces. Also, look into other international moving by the sea services, like overseas vehicle shipping. This way, you’ll be able to track the progress of your move much easier and be sure that all belongings are handled safely when shipping overseas.
