As new regions compete to attract the world’s wealthiest families, some historically famous tax-friendly jurisdictions have become somewhat less visible. 

Outside of hosting the annual Formula 1 Grand Prix and an eponymous yacht show, it feels like Monaco has been flying under the radar recently.

Yet in truth, the tiny Mediterranean Principality is flourishing, as conversations with local residents reveal its status is shifting from tax haven to business hub. 

Having 0% personal tax, capital gains tax, wealth or property tax is attractive, but there is also a highly attractive business incentive. Corporate tax is just 25%, and for companies generating 75% or more of their revenue within the principality, it’s 0%.

As you might expect, rather than broadcasting this in the headlines, they’ve taken a more discerning approach.

We spoke with Ludmilla Raconnat Le Goff who is the CEO of Invest Monaco, the Government of the Principality of Monaco’s organisation dedicated to promoting the Principality’s attractiveness and supporting residential, business and investment projects.

“We focus on selected markets where we can explain the reality of Monaco’s economy, identify entrepreneurs and potential partners, and build relationships that can be valuable for the Principality.” 

Raconnat Le Goff says part of the team’s responsibility at Invest Monaco is to provide a clear understanding of what Monaco can offer, but also to act as a filter to ensure alignment.

“We take the time to understand the project, the people behind it, their needs and what they want to build here. Not every project is right for Monaco, so part of our role is also to assess opportunities and, when necessary, redirect people towards a more appropriate solution.”

She notes they also have a role in debunking outdated myths and misconceptions about offshore wealth.

“Some of the older perceptions do not reflect the level of scrutiny that families and businesses encounter when establishing themselves in Monaco. High compliance requirements have been part of the environment for many years, including rigorous due diligence and attention to the origin of funds.”

For wealthy families considering an international move, Monaco’s history and Mediterranean location offer something unique beyond favorable taxes.

“Families rarely make these decisions on financial considerations alone. They are thinking about their children, their businesses, their personal security and where they want to spend their time. Monaco brings together institutional stability, security, an international business and financial community, and a location that keeps families close to their interests across Europe.”

Raconnat Le Goff often encounters the idea that Monaco is primarily a place to enjoy the rewards after a career, something she quickly dismisses.

“That overlooks the people here who are still building businesses, making investments and directing international activities. But I must say that this perception is gradually fading as Monaco continues to evolve.”

She also notes the multi-generational family office community is a valuable resource.  

“Monaco already has an established family office ecosystem, with experienced advisers, professional networks and opportunities for families to connect.“ 

This active community is also highlighted in conversation with Jason Cavanagh, a Monaco resident for 30 years and who runs Saint Leonard, a single family office.

Cavanagh emphasizes how the last decade has seen a visible increase in younger residents, and that the Principality has evolved from being a summer-oriented destination to being busy year-round, with a more active family office ecosystem.

“There are numerous organizations and professional bodies catering to the different needs of family offices, together with a strong network of professional advisers. There is also a very good calendar of both professional and social events, which makes it relatively easy for family offices and the wider professional community to connect.”

He also points out that while Monaco changes, it has done well to attract suitable residents.

“Over the last 10 to 20 years, Monaco has evolved considerably in its understanding of what it can and should be as a jurisdiction. There have been many positive developments, particularly a greater focus on business ethics, family values and social responsibility.”

In his view, Monaco might offer many advantages, but it is not simply a place to live. 

“To really become part of the community, you need to engage with Monaco and understand what it offers beyond the obvious financial benefits.”

Of course, the Principality isn't without its challenges. Space is scarce, property prices are among the highest in the world, and recruiting talent can be difficult in a market where many employees commute from neighboring France and Italy. For families looking to establish substantial operations, the Principality's compact size can be a constraint.

But from a networking perspective, Raconnat Le Goff says this small scale is also a positive.

“There are opportunities to meet people with considerable business and investment experience, through professional networks and everyday life. Combined with short distances and the climate, this makes for a particular balance between work and family life.”

It’s just one reason she believes it will continue to attract talented new residents and investors.

“For some, Monaco provides a European base where residence, business decisions and the organization of family wealth can come together. They may retain interests and advisers in several countries while choosing Monaco as the place from which they oversee those relationships.

Old money, new energy, and a very bright future. What's not to love about Monaco? 

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