Real Estate Investor Magazine South Africa June 2014

OFFSHORE Council, he has the power to make laws and change the constitution. Monaco has had its own written constitution since 1911. The current constitution defines the nature of government, organises public administration and confers constitutional rights on both Monegasque citizens and foreigners. The Principality is not part of the European Union but does follow its VAT rules. Monaco Residents Only 8 000 of the 35 000 population are truly Monegasque (The others reside for fiscal purposes or work). The majority of the residents are Italian and French, followed by British citizens. Monaco has a treaty with France such that French citizens working and/or living in Monaco still pay income taxes in France. There is no tax in Monaco on personal income, wealth or capital gains, local or global. Next to the advantage of not paying any personal taxes an additional advantage is that no filing requirements exist either. Notably Monaco does have inheritance taxes. This needs to be taken into consideration, as real estate in Monaco will fall under the Monaco Estate Laws. Monaco-based assets, including cars, bank and portfolio accounts are subject to inheritance taxes which is chargeable in the direct line from 0% to a maximum of 16% depending on the relationship of the deceased to the beneficiary. Financial Services Centre Monaco is also a highly effective international financial centre which is particularly well equipped to service the needs of both the high net-worth individual and the corporate client. It provides excellent banking and asset management services, with over fifty international banks and financial institutions in the Principality. Monaco Real Estate Not unsurprisingly real estate in Monaco is expensive because Monaco has zero income taxes for Monegasque residents and the land space is limited and demand far outstrips supply. The majority of the real estate is apartments in various sizes up to 5 bedrooms.. For example the prices could vary between EUR 2 Դ

Real Estate Investor Magazine South Africa June 2014 | Page 59