A cosmopolitan and privileged population.

While Monaco is the second smallest country in the world, it is also distinguished by one of the most cosmopolitan populations. Nearly 140 nationalities are concentrated in this small territory of 2 km².

75% of Monegasque residents are of foreign nationality.

According to the Monegasque Institute of Statistics and Studies1 (IMSEE), the Monegasque population is estimated at 39,150 inhabitants on 31 December 2021. Of these inhabitants, only 9,611 are Monegasque nationals, i.e. less than 25 per cent of the population. According to the latest census in 2016, foreign residents represent three quarters of the Principality's population. Nearly 140 nationalities rub shoulders on the 2 km² of Monaco.

Currently, nearly 25,000 foreigners live in the Principality. The main nationalities recorded are the French, with 9,286 inhabitants, the Italians with 8,172 inhabitants, and the British, with 2,795 inhabitants. The city-state also has Swiss (1,187 inhabitants), Russians (749 inhabitants), Portuguese (523 inhabitants), and Greeks (401 inhabitants). It is therefore a particularly cosmopolitan cohabitation, Monaco being a true world city.

Ethnic and linguistic cosmopolitanism

French is the official language in the Principality of Monaco: it is the mother tongue for 75% of the population. Italian covers 20% of the population, and English 5%. Communication in Monaco is therefore dominated by these 3 languages. The reason? Around 10,000 people cross borders every day to come to work to fill the 44,000 jobs available. Some of them come from Italy, participating in the country's linguistic cosmopolitanism.

 

Internationalization dating back to the Nineteenth century

The creation of the railway in the Principality has largely contributed to population growth, with the reception of a population from all over the world. In 1861, Emperor Napoleon III signed an agreement with Prince Charles III of Monaco to expand the Paris-Lyon-Mediterranean line to Menton2.

The first train arrived in Monaco in November 1868. But the Société des Bains de Mer wanted to develop aristocratic tourism, and asked for the construction of a new station near the Casino de Monte-Carlo. It was inaugurated in 1869. At the same time, property and income taxes were abolished. Construction activity is developing, the Principality attracts a new population from abroad. The objective of making Monaco a holiday resort for the nobility was achieved.

 

A universal enthusiasm for the Principality influenced by several factors

Why choose to live in Monaco? For Monegasque residents of foreign origin, there are many reasons, from cultural life to optimal security, including tax advantages driven by an ambitious economic policy.

 

A particularly attractive quality of life

The Princely Government of Monaco has always worked to improve the quality of life in the Principality. The strategy employed is effective, since Monaco notes a constant increase in its population. Indeed, the Rock can boast of its many assets, such as a rich sporting and cultural life. It is the site of world-renowned sporting events, such as the Monte-Carlo Rally, the Formula 1 Grand Prix, the Monaco Classic Week, and the Monte-Carlo Rolex Masters. The Principality also has an excellent education system, a remarkable social model, and offers its citizens an irreproachable health care system and security. Finally, the city-state has an ideal geographical location. Accessibility is optimal thanks to a developed road network, a train station, proximity to Nice Côte d'Azur airport. With more than 300 days of sunshine per year, it offers an ideal living environment on the shores of the Mediterranean.

 

A developed Monegasque economy

In 2021, Monaco's GDP reached 7.27 billion euros, according to data from IMSEE3. Since 2012, the average annual growth of the Gross Domestic Product has been 4.4%. This is due to a diversification of the local economy, where several sectors participate significantly in this growth. More than one third of GDP comes from scientific and technical activities, administrative and support services (21.2%) and financial and insurance activities (16.1%). Other sectors, such as real estate activities, wholesale trade, retail, construction and accommodation and catering, account for between 6.6 and 10% of the Principality's wealth. This diversity of activities is a real asset for Monaco and for residency candidates.

 

An attractive tax system for companies and investors

Investors are numerous, the Rock having developed an economic model based on onshore. On the business side, they are only subject to ISB (tax on profits of legal persons) when more than 25% of their turnover is generated outside Monaco. Thus, with an activity remaining at least 75% Monegasque, capital and labour income are not taxed. The presence of 140 different nationalities in the Principality has resulted in the creation of a particularly extensive banking network. The cosmopolitan population can thus set up their businesses without difficulty.

 

Without property tax and income tax, the Rock offers a favorable tax system4. This is mainly based on:

  • Customs duties, which represent 3% of total government revenue;
  • Taxation of legal transactions, for an estimated total amount of €183.8 million in 2020;
  • Taxation on profits from industrial and commercial activities;
  • And VAT, corresponding to more than half of total government revenue.

Thus, nearly 75% of public revenues come from Monegasque taxation. This tax system and this transparency are two attractive elements for foreigners, both companies and investors.

 

Monaco holds several records. It has the most expensive real estate in the world, takes the2nd place on the podium of the smallest countries in the world (after the Vatican), and is recognized as the country embracing the most cosmopolitan population with 140 different nationalities.

 

1 https://www.imsee.mc/Population-et-emploi

2 https://www.monacochannel.mc/Chaines/Monaco-ma-Ville/News/Gares-a-l-Histoire

3 https://www.imsee.mc/Economie-et-Finance/PIB

4https://politiqueinternationale.com/revue/n-141-dossier-special-monaco/dossier-special/monaco-une-strategie-economique-conquerante

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