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Monaco Closes The Door On Some Millionaires
By Roger Munns
Hoping to move to a tax free country, some Monaco property buyers are already paying nearly US $1,000,000 for studio apartments, but Monaco property prices could still rise steeply in the next couple of years, and Europe's favourite tax haven could be out of reach for some millionaires according to a local travel guide.
Different recent surveys have all been good indicators for Monaco, showing more people likely to apply for residency and buy property in Monaco. Buyers from the UK in particular are expected to rise in number.
Commenting on the findings, Monte Carlo and Monaco destination guide http://www.yourmonaco.com say 'While we would like perhaps to imagine that it's the fine cuisine and good weather in Monte Carlo that is attracting the British to Monaco, we know realistically that it is because residency entitles them to a zero rated income tax.
One survey says that the number of millionaires in the UK will increase four fold in the coming years, and the UK has become a very important market for Monaco real estate recently - that will boost prices as the demand feeds through. Another survey coming out of the UK predicts that house prices will rise by 70 per cent over the same period. Inheritance tax in the UK is quite a big issue at the moment as many more people are above the government threshold due to their house price, and in Monaco there is no inheritance tax, which gives an added incentive for some to move to a tax haven. People choose to leave their money to their children, cutting out the government that would take a large share.'
A CBRE report on world property also noted that Monaco real estate prices match those of London and New York's Manhattan.
'Apart from the very obvious financial advantages that can be had by moving to Monaco', conclude YourMonaco.com, 'Perhaps the most telling survey for us was the one by Laura McKenzie, a US travel expert. She rates Monaco as the number one destination for safety. For people with money preserving and optimising what you have in the bank is important, but so is the ability to walk down the street without fear. Monaco provides both the financial and personal security the wealthy seek, and it should come as no surprise when they decide Monaco is the best place for them and their families to live.'
Hotels In Monte Carlo
Apart from being a tax haven, the principality is perhaps best known for the Monaco Grand Prix.
In addition to the race that takes place each May, the world's premier yacht show is held in September, attracting millionaires and billionaires to view what the yachting world has to offer.
Monte Carlo real estate specialists Tribune properties say that the yacht show in September is symptomatic of the way Monaco has progressed in recent years in attracting high profile events to the principality.
'Apart from the Monaco Grand Prix and the yacht show, there is the tennis in April and this year for the first time a flower show. If it goes the same way as the other events it will be a success in its own right before too long. Having different events throughout the year benefits the Monaco hotels and the tourist sector generally'.
The European tax haven is the second smallest country in the world, but the Monaco map was re-drawn twenty years ago when land was reclaimed from the sea. Earlier this year bids were invited for an island to be built off Monte Carlo.
'When complete the island will add to the Monaco housing stock', say Tribune Properties, 'And this might help dampen the property prices a little. But we anticipate that the apartment blocks will be low rise as Prince Albert is very keen to promote Monte Carlo as an environmentally sound place to live. We expect some of the properties will be reserved for key workers while the rest will be available for general sale. But overall we doubt if the new apartments will keep up with increased demand, and property prices in Monte Carlo will stay as high as London and Manhattan'.
It is also possible that when the island is complete that the Monaco Grand Prix circuit will change. Monaco has long been notorious for a lack of overtaking places, and this might help alleviate the situation. Included in the plans will be new Monte Carlo hotels.
'Overall all the key elements are in place to see a significant rise in Monaco property prices in the near and medium term', claim Tribune Properties. 'Quite ordinary one bedroom apartments are changing hands at a touch under a million Euros at the moment - over a million US $'s. Give it two or three years and it's possible that you won't be able to buy even a studio apartment suitable for under a million Euros.'
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