For a foreigner, becoming a citizen of the Principality of Monaco is, to put it mildly, a challenging task. This is not only because this small state serves as a haven for Europe’s wealthiest individuals. Geography also plays a role. The Principality’s area barely exceeds 2 square kilometers, and its entire population is under 38,000. Essentially, the country is a single, modestly sized city. Given these conditions, it is clear that Monaco simply cannot physically issue passports to large numbers of immigrants.
Obtaining Monaco Citizenship in 2020
Yes, Monaco is home to very wealthy people, and many affluent foreigners believe that moving there requires astronomical sums. In reality, this notion is not entirely accurate, as analysts from the emigration center “Garant.in” will now demonstrate.
Conditions for Obtaining Citizenship in Monaco
First, let’s clarify: there is no dedicated program that guarantees citizenship in exchange for investment. Of course, as in any country, one can acquire a passport through marriage or birth. But if we’re talking about investment immigration, there’s only one option—a long road to naturalization through obtaining residency.
However, there is one exception. According to the law, the Prince of Monaco has the right to grant citizenship each year to ten specially selected individuals. These may be globally recognized figures, individuals with exceptional contributions to the country, or, at times, extremely wealthy foreigners capable of making substantial contributions to the state treasury, potentially amounting to hundreds of millions of euros. Such information is usually strictly confidential, and the actual amounts invested remain undisclosed.
How to Obtain a Monaco Residence Permit
The real path to citizenship in this country begins with obtaining a temporary residence permit. Here, we return to a point mentioned earlier: contrary to popular belief, this does not require astronomical sums, and in many cases, becoming a Monaco resident is economically advantageous for businesspeople.
The main requirements for obtaining a residence permit in Monaco are as follows:
- Open a bank deposit in the Principality with a minimum amount of €2 million.
- Purchase property in the country that allows the foreigner to reside in Monaco, often with their family. It’s worth noting that real estate in Monaco is among the most expensive in Europe. The average price per square meter is close to €45,000, and apartments smaller than 70 m² are practically non-existent. Alternatively, housing can be rented instead of purchased.
- Prove to immigration authorities that you have a monthly income outside the Principality of at least €3,000 per adult family member and €1,500 per child. If the foreigner is renting a property, they must confirm sufficient additional funds for this purpose.
In summary, obtaining a residence permit realistically requires around €5 million, plus a solid, stable income from your home country.
Conditions for Residency Status
After fulfilling all the requirements and passing the checks (a process that takes 2-4 months), the applicant receives a "Permis de séjour" (residence card). It is valid for only one year, after which the status must be renewed for another year while maintaining all commercial conditions. Subsequently, the "Permis de séjour" can be renewed twice more, but under a 3+3-year scheme.
Upon completing all these stages, the resident receives the "Carte de résident privilégié" — a privileged residence permit. This card is issued for 10 years, and most importantly, it allows the holder to apply for citizenship. According to Monaco’s laws, a passport can be obtained after holding residency status for at least 10 years.
Important! Throughout this time, the resident must spend at least 183 days each year in Monaco.
This requirement, despite its obvious inconvenience, also has a huge advantage. You become a tax resident of the country, and Monaco’s tax system offers its residents significant benefits, including:
- No wealth or property tax;
- No inheritance tax;
- No tax on income earned outside Monaco.
The last point is particularly valuable, as it means that whatever income you have in your home country will not be taxed in Monaco. This is why, for many wealthy individuals, permanent residency in Monaco can even be economically beneficial. This is a kind of paradox: you can move to this ultra-wealthy country to save on taxes!
Note! When applying for Monaco citizenship, the applicant must demonstrate knowledge of the French language and convince the relevant authorities that they are sufficiently integrated into the local culture. For instance, joining one of Monaco’s clubs is encouraged.
Advantages of Living in Monaco
Being a citizen of Monaco, or even having residency status, is incredibly prestigious. In any social circle, you automatically become a VIP. Your business, if registered in the Principality, will have the highest reputation in business circles. In addition, you and your family members will gain:
- Strong legal protection, both personal and business-related;
- The highest quality of life;
- The opportunity to educate your children in prestigious universities;
- The right to own luxury real estate.
Monaco is a secure corner of the world, ideal for living a comfortable retirement or building a successful business. And, as we’ve seen, this does not require astronomical financial investments.
