MONACO AS AN OPTION FOR RELOCATION

Geneva, 26 November 2013, Anne Tschanz Vakula

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1.  Introduction

2.  Monaco in numbers

3.  Taxation in Monaco

4.  Three scenarios for applying for a Monaco Resident Card (MRC)

5.  Various steps to get MRC & MRC “timeline”

6.  Real Estate in Monaco: overview

7.  Social and cultural Life in Monaco

8.  Video presentation of Monaco

9.  Conclusion

TOPICS

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1. INTRODUCTION

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-  “Who” is Monaco?

-  Some Swiss HNWI moved very recently, why did they move?

-  Who can move to Monaco? Who is a serious candidate?

-  What are the chances?

-  Is it complicated?

-  How to proceed?

-  How one should approach such a move if interested?

-  Whom should you meet to perform the analysis and assist you?

I will try to answer those questions

INTRODUCTION

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2. MONACO IN NUMBERS

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Ø  8’392 Monegasque citizens

Ø  36’000 residents, 120 nationalities Ø  50’000 jobs

Ø  40’000 cross- border workers come every day to work in the Principality

Ø  5’000 companies have their headquarters in Monaco

Ø  GDP per capita: 88 487 euros

Ø  4’765 public jobs

Ø  45’441 jobs in the private sector

BUDGET 2012 in €: Spending: 896,4 mios

Income: 900,1 mios Surpluses: 3,75 mios

Sources: Magazine “Le Point” Nº 2135, 15/08/2013 & www.mairie.mc/principaute-­‐monaco-­‐monte-­‐carlo/chiffres-­‐cles/

MONACO IN NUMBERS 2013

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3. TAXATION IN MONACO

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1. Income tax Residents of the Principality do not pay any income tax on income earned in Monaco (except when involved in certain commercial activities). 2. Capital gains tax The Principality does not levy capital gains tax on individuals who are resident in the jurisdiction.

PERSONAL TAXES (I)

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3. Inheritance tax and gift tax Inheritance tax is limited to Monegasque located assets only and is payable at the following rates: • Between parents and children 0% • Between spouses 0% • Between brothers and sisters 8% • Between uncles/aunts and nephews/nieces 10% • Other relatives 13% • Non relatives 16% The estate tax treaty between Monaco and France provides for a specific set of rules regarding French assets held by Monegasque or French nationals.

PERSONAL TAXES (II)

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4. Wealth tax The Principality does not levy a wealth tax. It is not uncommon for a Monegasque resident to own property in France. The property may be held directly or indirectly (via a Société Civile Immobilière (“SCI”), a special type of company for real estate ownership and management). It is important to note that such a property may be subject to French wealth tax (although there are ways to structure the holding of French property to mitigate this tax). In addition, nationals of a non-EU country which has not signed a Double Tax Treaty with France may also be liable to an additional tax charge in France if they have a French property at their full disposal.

PERSONAL TAXES (III)

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5. Taxation of Real Estate income and gains in Monaco Monegasque sourced rental income and capital gains are not subject to tax. 6. Transfer Tax payable on Real Estate transactions The sale of real estate located in Monaco is subject to a 4.5% transfer tax on the sale proceeds (or 7.5 % in some cases) The sale of shares in a Monegasque SCI will also trigger tax liabilities:

PERSONAL TAXES (IV)

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Monaco is a civil law jurisdiction. However, it recognises the common law concept of equity and trusts, subject to certain criteria being satisfied. a) Residents wishing to establish a trust in Monaco Monegasque law enables residents of Monaco who are citizens of countries having a common law system to settle trusts in the Principality in order to dispose of their assets. b) Residents with a trust established in a foreign country: It is possible to transfer trusts to Monaco under Law 214. It is also possible to transfer distribution of a Trust to residents in Monaco without any VAT or taxation if some certain conditions are respected

TRUSTS IN MONACO

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4. THREE POSSIBLE SCENARIOS

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3 POSSIBLE SCENARIOS

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Scen

ario  1    

•  “Wealthy”  

•  Letter from a bank addressed to Sûrete Publique and confirming that the client has sufficient financial means to live in Monaco

Scen

ario  2    

•  Work / self- employment

•  Work contract •  Work Permit or

Certificate from the employment office

•  A copy of relevant trade register

Scen

ario  3    

•  Setting up a business in Monaco

•  A receipt from Business Development Agency confirming your application to start a business

Source:  Public  Services  in  Monaco  www.en.service-­‐public-­‐parHculiers.gouv.mc/NaHonality-­‐and-­‐residency/Residency/New-­‐entrants/How-­‐to-­‐apply-­‐for-­‐a-­‐residence-­‐permit  

5. VARIOUS STEPS & MRC TIMELINE

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VARIOUS STEPS TO BECOME RESIDENT IN MONACO

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1

2

3

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Analyse your situation and objectives

Apply for the French “D” Visa for Monaco (depending on citizenship)

Open a bank account in Monaco & rent an apartment or buy a property in Monaco

Get the residence card

Other important steps

WHO NEED A “LONG-TERM “ VISA FOR FRANCE / D VISA FOR MONACO?

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- All Non EU citizens -  EU Citizens and Swiss citizens do NOT need to ask for a VISA for Monaco

(“the D Visa” from the French Embassy in the country of residence)

-  Hence for Swiss citizens/passports, the procedure is really simple and fast

MRC TIMELINE

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APOINTMENT WITH AVD FOR THE MRC APPLICATION

VISA APPOINTMENT AT FRENCH CONSULATE

IN THE CURRENT COUNTRY OF RESIDENCE

RECEPTION OF THE VISA

SETTING THE APPOINTMENT AT SP WITH

CLIENT'S AUTHORISATION & AUTHENTIFIED COPIES OF

THE VISA & PASSPORT

INTERVIEW AT SP

MONACO RESIDENT CARD

1 Jan 1 Feb 1 Mar 1 Apr 1 May

4 Jan 4 Apr

5 May

Only 4-5 weeks for Swiss Passports

4-5 months for non EU citizens and non Swiss passports

6. REAL ESTATE IN MONACO

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RENT IN MONACO

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DISTRICTS IN MONACO

1 BEDROOM APARTMENTS FOR RENT

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Features /Ref number & Building Name

Le Panorama (L351)

Le Paradise (oli-I027)

Monte  Carlo  Sun  (LMCS)  

Monte  Carlo  Sun  (MCSun2P)  

Palais Heracles (12022201RC)

Park Palace (FCF10L)

Park Saint Roman (846)

Memmo (LMIL0203)

Le Metropole (DL2-00611)

Average Monthly Rental Price

1 Bedroom Appt

Average Monthly Charges Price 1

Bedroom Appt

AVD Apt Number AVD 5 AVD 10 AVD  8   AVD  7   AVD 9 AVD 11 AVD 12 AVD 6 AVD 4 € €

Total Apt size in square meters (m2) (Living area) 40 120 (80) 97  (77)   76 (43) 120 (110) 108 (91) 108 (84) 92 (71) 98 (81)

5,733 342

Terrace Size in square meters (m2) - 40 20   33 10 17 24 21 17

Monthly Rent + Charges € 2,800 + 100 4,500 + 350 4,700  +  300   4,800 + 300 5,000 + 380 5,800 + 500 6,000 + 550 6,000 + 600 12,000 + 1,500

Parking - 1 -­‐   1 - 1 1 1 2

Floor - - 7   - 1 - - - 8

View Port of Monaco Sea Garden  &  sea   narrow sea view Port of Monaco Casino & Sea Garden  &  sea   Port de Cap d'Ail Sea

Disctrict* (please refer to the map Nr 2) 04 La Condamine 06  Fonvieille     02 Saint Roman 02 Saint Roman 04 La Condamine 01 Monte Carlo,

Carré d'Or 02 Saint Roman 06  Fonvieille     01 Monte Carlo, Carré d'Or

Available 01  'JAN  2014   Immediately 01  DEC  2013   Immediately Immediately Immediately Immediately 01  DEC  2013   15  DEC  2013  

The information in this table are provided by Real Estate agencies. The average rent reflects a kind of average rental price for 1 bedroom apartments as of November 1st 2013, as all apartments “officially” on rent at this specific date were taken into account for the calculation of the average

2 BEDROOMS APARTMENTS FOR RENT

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Features /Ref number & Building

Name

Chateau d'Azur (3PIECES CH

AZUR)

Immeuble (R 8588)

Hersilia  (Do<a_L958)  

Les Abeilles (867) Neuf (MCV3P) Sporades (L135) Les Caravelles

(ROC 3105)

AVD Apt Number AVD 13 AVD 14 AVD  15   AVD 18 AVD 21 AVD 25 AVD 19

Total Apt size in square meters (m2) (Living

area) 66 100 (95) ('116) ('125) 148 (92) 123 (100) ('120)

Terrace Size in square meters (m2) - 5 - - 56 23 40

Monthly Rent + Charges € 3,000 + 200 5,000 + incl 6,500 + 300 6,900 7,000 + 700 7,900 + 500 9,000 +300

Parking - - 1 - 1 1 1 Floor - 1 6 High High - 2

View - Short Sea & Beach Sea Sea Courtyard   Port  

Disctrict* (please refer to the map Nr 2) 02 Saint Roman 04 La Condamine 03 Larvotto 01 Monte Carlo 08 Les Revoires 06  Fonvieille     04 La Condamine

Available Immediately Immediately Immediately Immediately Immediately 01  DEC  2013   01  DEC  2013  

2 BEDROOMS APARTMENTS FOR RENT (II)

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Features /Ref number & Building

Name

Park Saint Roman

(PSR311 3)

Patio Palace(G-3P.15A)

Annociade)(SM01)

Park Saint Roman (L34PSR)

Le Mirabeau (EIL3P27)

Les Floralies(MP-0955)

AVD Apt Number AVD 23 AVD 24 AVD$16 AVD 22 AVD 17 AVD 20

Total Apt size in square meters (m2)

(Living area)130 (100) 216 (105) 173 (143) 173 (128) 170 (140) 214 (142)

Terrace Size in square meters (m2) 30 111 30 45 30 72

Monthly Rent + Charges €

10,000 + 800 10,000 + 600 11,000 + 515 13,500 + 1,200 18,000 + 900 30,000 + 434

Parking 1 2 1 1 2 1Floor 3 15 26 7 High 6View Sea Mountains & Sea Sea Sea Sea & Monaco Casino$&$Sea

Disctrict* (please refer to the map Nr 2)

02 Saint Roman 09 Moneghetti 02 Saint Roman 02 Saint Roman 01 Monte Carlo, Carre d'Or

01 Monte Carlo, Carre d'Or

Available Immediately Immediately 01$JAN$2014 Immediately Immediately Immediately

Average Monthly Rental Price

2 Bedrooms Appt

Average Monthly Charges Price

2 Bedrooms Appt

€ €

10,600 437

The information in this table are provided by Real Estate agencies. The average rent reflects a kind of average rental price for 1 bedroom apartments as of November 1st 2013, as all apartments “officially” on rent at this specific date were taken into account for the calculation of the average

3 BEDROOMS APARTMENTS FOR RENT

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The information in this table are provided by Real Estate agencies. The average rent reflects a kind of average rental price for 1 bedroom apartments as of November 1st 2013, as all apartments “officially” on rent at this specific date were taken into account for the calculation of the average

RENTAL PRICES SUMMARY

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The figures in this table are all calculated based on information provided by Real Estate agencies. The average rent reflects a kind of average rental price for 1, 2 and 3 bedrooms apartments as of November 1st 2013, as all apartments “officially” on rent at this specific date were taken into account for the calculation.

&

Charges

in €342 473 250

Numbers of bedrooms

1 2 3

Average Monthly

Rent 5'733 10'600 16'757

BUY IN MONACO  

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APARTMENTS ON SALE

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The figures in this table are all calculated based on information provided by Real Estate agencies. The “Asked Price” reflects a kind of average sale price for 1, 2 and 3 bedrooms apartments as of November 29th 2013, as all apartments “officially” on sale at this specific date were taken into account for our analysis and calculation.

Legend: -  “LA Price” = Asked Price / Living Area (LA) per square meters -  “TA Price” = Asked Price/ Total Area (TA) per square meters

7. SOCIAL AND CULTURAL LIFE IN MONACO

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-  Concerts and opera

-  Museums

-  Restaurants and clubs

-  Shopping

-  Prestigious club memberships (YCM, ACM)

-  Beaches

-  Sports and well-being: watch and do yourself

-  French Riviera – Côte d'Azur

-  Italian Riviera – Riviera dei Fiori (Sanremo), Riviera delle Palme (Savona),

Cinqueterre / Portofino

-  Travel – Nice airport 30 min away by car, 7 min by heli, more than 50 airlines, more than 100 destnations

WHAT TO DO IN MONACO? (and outside)

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-  Concerts and opera – classical, rock, pop and jazz

-  Salle Garnier (Opera), Auditorium Ranier III, Grimaldi Forum, Sporting,

Théâtre Princesse Grace, Cathedral…

-  Museums -  Balls and gala events

-  Rose Ball, Red Cross Ball, MONAA – just to name a few!

-  Festivals – circus, fireworks, theatre, jazz…

-  Sports

-  Monte Carlo Tennis Masters, GP Formula 1, AS Monaco

-  Monaco Boat Show

CULTURAL LIFE

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-  170 Restaurants and clubs -  Louis XV – 3 stars Michelin, Joël Robuchon (2*), Le Vistamar, Yoshi (1*)

-  Fusion, French, Italian, Asian, pizzeria, café, bars, takeaway and home delivery

-  Live music

-  Club membership (Yacht Club, Automobile Club)

-  Beaches

-  French Riviera -  From being 15 min away (La Mala) to 1hr 30 min (St. Tropez)

-  Italian Riviera -  From being 30 min away (Sanremo) to 2 hrs (Portofino)

-  Ski resorts few hours away

SOCIAL LIFE

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8. VIDEO

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ATTACH VIDEO FILE ON FINAL VERSION (200MB)

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9. CONCLUSION

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AVD TEAM

ANNE TSCHANZ VAKULA

Founder and CEO PATRICIA TURKMEN DAUTREBANDE

Partner

ALICJA MAJEWSKA

SARL VAKULA DAUTREBANDE

Building Est- Ouest, 2nd Floor 24 boulevard Princesse Charlotte

98000 MONTE-CARLO MONACO

T +377 99 99 62 19

www.avd-monaco.com

The conditions for the MRC application can be changed by the Monegasque authorities at any moment. AVD shall not be help responsible in case of modifications or in case an applicant would be refused a MRC. Most of the information presented in this presentation come from the official website produced by the Monegasques authorities and by real estate agencies. You should always take legal and tax advises for your specific situation. AVD can assist you in relocating to Monaco, to obtain the MRC (Monaco Residence Card), to open banks accounts in Monaco and invest in Monaco. Depending on the situation, we will always encourage you to take legal and tax advise on the top of meeting us. We will always work hand in hand with your lawyers and tax experts. We would be more than happy to introduce you to lawyers and tax experts if needed.

DISCLAIMER

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