Cost of living in Monaco

Hey all!

Yes, this is a great topic I am looking for information on. I too want to move to Monaco, and anything would be appreciated. Is the tax shelter worth the extra cost for rent, food, and everything else? Would I be better off in Southern Italy paying upwards of 35% Income Tax, and basically every other form of taxes that are to be paid, but, everything else is easier on the pocket book(Rent, Food, etc)?? Is Monaco set up the same way as Italy? Do they have like 20 different taxes for assets and property, and capital gains? In any case, like I mentioned before, any information would be vital, and totally appreciated.

Thank you!

Ben From Montreal...

I wish I could help on that one, but the weeks I spent in Monaco, I was with my family so I have no idea of how it works at all. The only thing I know for sure, is that I've never felt safier than in Monaco (even though I feel very safe in my own city !).

To get a residency permit in Monaco, you have to be able to deposit at least 500,000 euro into a newly opened bank account in Monaco, and rent a place with a minimum square meter of floor space. You cannot have any crime record and your personal details are analyzed against any registry. A residency permit is necessary to get tax relief on income or savings or inheritance. There is, however, 33% company tax charged on profits a Monaco registered company makes on any services or sales outside of Monaco. You have to live in Monaco a minimum 6 months of the year to conform to tax regulations. VAT is 30% in Monaco.

Rents are expensive and anywhere from 100-300% plus than on the french riviera. Sure, once in a blue moon you can find a deal but its not the norm. A small space of 40-50sq mtr is cheap for 2,000 euro a month but can easily cost more.
Monaco has virtually no crime... Its safer to live in Monaco than to work in an embassy! Monaco is heavily guarded and every car that enters get their license plate photographed and checked to a crime registry. Monitored and guarded includes all banking procedures too, which is far more controlled and regulated than regular banking.
Making friends have been known to be very, very difficult because many people own or rent properties in Monaco but are seldom there. But there are expat groups to join and this is the best way to start making friends.
Monaco is very pretty but congested; buildings stand almost back to back and there are no green areas per say apart from a few parks. Activities are quite few so it can get boring. The huge plus is proximity to other places so its easy to get in and out of Monaco and see other areas.

I don't think Monaco is a good solution for anyone seeking to avoid taxes unless they earn millions. The VAT and cost of living in Monaco is so high, you basically pay the difference to any income tax on the double and tripple rates on almost everything you pay for. For example, a drink is 12-16 euro in Monaco, and may be around 4 euro on the rest of the riviera. A small flat that costs 1000 euro a month in other uppity cities, cost around 3000 euro in Monaco. So everything is more expensive.

1. accommodation prices: 65 sq meter at 3,000 euro a month

2. public transportation fares: normal french rates; 1 euro for bus, 6 euros to get by train to Nice

3. food prices: 800 euro per month. Does not include eating out

4. health prices: about 150 euro a month minimum, but it all depends on what plan, coverage, etc.

5. eduction prices: n/a but I have friends who educate kids in Monaco and know its expensive.

6. energy prices: about 100-150 euro per month

7. common bills: Internet/television/telephone: package deal for 60 euro per month
mobile phone: two year contract for at least 80 euro per month plus extra on calls above the limit

8. prices of a good menu in a traditional restaurant: can be anything in Monaco, up to several hundred euros. A normal lunch cost around 20-30 euro, but some places have plat du jour for about 15 euro.

9. prices of a beer or a coffee in a regular pub: Beer about 6 euro; coffee about 5 euro. This can be less or more, all depending if you know where to go to keep rates down.

To exist on minimum basic existence level in Monaco, you need to earn a minimum 5,000 euro per month. With 5,000 euro you are basically a low income resident and will not be able to own a car, afford car insurance, go out, travel, entertain etc.

Thank you for the information ! But is it surprising almost no one comes here to know more about the life style in Monaco ? :-D

Thanks for the informations!

Am I correct in my assumption that a British citizen being offered a job in Monaco can get tax residency by renting in the principality sidestepping the capital and property ownership requirements?

- I understand that rents are high but the tradeoff might be worthwhile for a few years.

Thanks in advance for any input.

Hi endame,

To be honest re costs every thing rebant wrote in 2009 is still up todate.
As a British citizen you should not have to many issues becoming a resident as long as you have a clean criminal record. You can rent a studio for 1500€  per month but it will be tiny!  So depending on what you're looking to save on your tax bill depends on how much you want to splash out on your rent. Remember you need approx 8 times your monthly rent up front to move in here, plus most appartment blocks have monthly charges which can be any thing from 100€ +++
Remember to change your driving license over within your first 12 months of living here or you must re sit your test in French!
For the first 3 years you must renew your residency annually and will be asked to produce proof you actually live here not just using the address for tax purposes, (normally recent electricity bills, so they see them change each month). If you work in MC for a company based here you have to pay 15% of your gross income to the state (it's a bit like the UK's NI).  But on the positive there are no residency taxes.

MC is a funny old place and no one will ever change it, but if you can make your home it will be what ever you want it to be.

Hope this helps.

Dear Wct275, many thanks for your reply; much appreciated.

I haven't seen mention of the 8 times rental as cash- requirement before.

Very much looking forward to the move now.

Kind regards.