Monaco may initially sound like an expensive playground city in France. However, in reality, Monaco is a separate sovereign nation located between the towns of Eze and Menton in France. This land, covering less than 2 square kilometers, is a unique place with its own laws and government. There are 38,000 people living in Monaco, and 30% of them are millionaires. People from all over the world dream of stepping foot in such a cramped and crowded place. The prices of everything in Monaco are literally sky-high. So why do the wealthy continue to compete for a piece of land here?
Nestled within France and alongside the Mediterranean Sea, Monaco has a coastline of 4.1 kilometers. It is the second smallest country in the world, only larger than Vatican City, and is also situated within another country, Italy. With a total area of 197 hectares, equivalent to 1.97 square kilometers, Monaco has the highest population density in the world, with 17,000 people per square kilometer. The actual Monaco residents make up only 19% of the total population, with the majority being French, Italian, German, and British. The population in Monaco comes from 130 countries, as the world's wealthy flock here to save on income and inheritance taxes.
Famous names like Boris Becker, Michael Schumacher, and Claudia Schiffer have once evaded taxes in their home countries. Currently, many movie stars and sports stars still live here, at least having residency. Monaco is still under the monarchy of the Grimaldi family, which has ruled this tiny nation for nearly 600 years, currently led by Prince Albert. Monaco will only exist as long as the Grimaldi family does. Once this family is no more, Monaco will belong to France. Monaco truly gained fame when Prince Rainier III married Hollywood star Grace Kelly, a renowned actress of the 1950s. When Grace Patricia, her name after marriage, became queen, it was also the time Monaco attracted the wealthy and artistic elite to create the glamorous and rich Monaco we know today.
Monaco offers many cultural and sporting activities; visitors can attend opera performances or circus festivals, which are renowned cultural events. The famous Formula One race is also an irresistible invitation for all sports-loving tourists. The people of Monaco are very skilled in economics, despite the tiny area and lack of special resources. However, Monaco has become wealthy through services that attract the elite, such as tourism, casinos, and entertainment venues. Above all, Monaco remains a top priority for the super-rich due to its extremely favorable tax policies. Since the Grimaldi family, the royal family of Monaco, established the principality over 700 years ago, they have had the right not to impose income tax on anyone living in their country.
Businesses that are profitable do not have to pay taxes on their profits in Monaco, and residents do not have to pay property taxes or even taxes on their investment gains. However, if they transfer assets out of the country, they will incur a 33% tax. Nevertheless, residents here still have to pay VAT according to French regulations, with all goods circulating in the principality. French residents in Monaco must continue to comply with French tax regulations or give up their citizenship, which many still do.
In other words, this tiny principality is a place where the wealthy can legally evade taxes. For this reason, more and more people flock to Monaco, causing land area to shrink, more buildings to rise, and real estate prices to soar. City planners estimate that about 2,700 more people will become Monaco residents in the next 10 years, equivalent to a population increase of over 7%. Due to the scarcity of land, real estate prices in Monaco are pushed to astronomical heights, making it the place with the most expensive housing in the world, at around $100,000 per square meter. However, even with money, finding a suitable home is not easy.
If you are offered the chance to start a new life in a country with a wonderful climate and a beautiful, clean living environment, how could you refuse? However, do not forget that moving to Monaco could consume all the savings you have accumulated over a lifetime. If you think you can maintain a great life with just a few hundred thousand dollars in Monaco, you are mistaken; even $200,000 may only be enough to buy a well-furnished bathroom. If you have $1 million, in other countries, you could live lavishly, but in Monaco, that amount is only enough to buy a modest apartment, and sometimes it may not even be enough because wealthier individuals have already taken it. However, the allure of the principality nestled in France is not just limited to that.
To attract the wealthy, Prince Albert's government has worked hard to ensure the best quality of life, a stable economy, and a balance in politics and society. In terms of security, this principality has a system of sensor cameras in every nook and cranny, no matter how small. On average, there is one police officer for every 100 citizens to ensure everything is safe. Any robbery or violence is dealt with swiftly. In Monaco, you can feel completely at ease as it offers entertainment and relaxation spots that never get boring.
Despite being a small country, it is famous for its five-star service, tourism, and entertainment venues, which are built widely. High-end tourism services are considered the main source of income for this nation. Strolling through the small streets to travel back in time, you will discover the ancient atmosphere amidst the modern city. Additionally, the magnificent architectural landmarks will amaze you when visiting the royal palace of Monaco, which has gone through many generations and is the ruling place of this tiny nation. Furthermore, you can admire museums, churches, and vibrant green gardens filled with flowers.
Monaco is also known as the Las Vegas of Europe, home to the most luxurious Monte Carlo casino in the world, an unmissable attraction and considered a casino paradise for the elite. Nothing compares to the ancient and charming allure of the magnificent chandeliers hanging in the Monte Carlo casino, with royal architecture featuring a theater-style dome from the 19th century. Although it is open for visits during the day, its charm truly shines when the sun sets. When the wheels of fortune begin to spin, the casino industry is extremely developed and prosperous, bringing in enormous profits.
However, this principality prohibits its citizens from gambling, reserving it only for elite tourists. For women, Monte Carlo is also a paradise in another way, as it boasts world-class health spas and high-end fashion stores selling items exclusively for the affluent. In terms of cuisine, the restaurants in the Principality are internationally certified, some even holding Michelin stars.
Several major events are organized perfectly down to the last detail so that all residents can have time to relax and unwind. Additionally, there is the famous Monaco yacht festival, perfect for those who love yachting and want to indulge their passion. In this kingdom not meant for the poor, you can enjoy beautiful gala evenings, diverse cultural and artistic events, opera, and peaceful beaches. However, Monaco is increasingly facing difficulties in building new homes and managing real estate prices. The wealthy are flocking in more and more, with many owning homes but not residing here, leading to a growing demand for construction while land area continues to shrink.
Plans have been considered to dig deeper underground for housing construction. Additionally, some land reclamation projects will add 6.07 hectares of land to Monaco by 2026, including over 120 new homes and 30 new docks. This is not the first time this principality has expanded into the sea. According to the BBC, this country has increased its area by about 20% since 1861. However, there are also rising environmental concerns surrounding Monaco's land reclamation projects.
Land reclamation requires large concrete structures to be pulled out to sea. They will then be sunk to a predetermined location before being filled with sand to create artificial land, which will destroy the underwater ecosystem. Therefore, developers are planning to relocate the underwater flora and fauna to another area through artificial coral reefs. Nevertheless, the actual impact of these measures on the environment is something no one can fully calculate.
For Prince Albert II, the leader of the principality of Monaco, this is a difficult decision. He has contributed millions of dollars of his personal wealth to environmental charities. In his role as a leader, he must weigh the risks to the environment against the potential economic benefits, which are vital for a small country like Monaco.