The Monaco thread

[Mtrader]

Many Russian have problems to maintain their lifestyle since the Ukrainian crisis. So while the Russians drove up prices in the past by massively invading Monaco and the South of France, they now do the opposite. Spain (Marbella) has the same problem.
On top of that many countries work together to stop the fake living (address in Monaco but living in their home country) of HNW people. It has become much more easy to check where people were or are (check mobile phones, cameras everywhere, airport control, twitter, facebook, creditcards, bankcards...)

Since 2000 the Rouble lost 75% of its value against the EURO. And oil lost over 50%.

 

[Ditch]

By problems do you mean ones created by where you are living? I am thinking that as long as you have the bank attestation and the documents (electric, telephone bills) for 3 months the residency and 0% Monaco taxation is not going to be an issue. The problems may come from the local tax authorities (likely French) where you spend the bulk of your time. If they can prove that you are resident in France by way of schools, clubs, links, bills, days residency, working from France then you are going to be on the hook for French taxes. To do the studio flat work around I fear you would have to 'go dark' much of the year which is fine if you don't have family but not an option if you do. I guess to do it properly you would need to pony up for a decent place in Monaco which is going to be a lot of cash, but could still be worthwhile for some.

In France the top income tax bracket is 75%, so going dark comes with a significant risk. Besides that, I don't trust the tax authorities one bit if they get their claws in you. In Holland there have been court rulings, in which people, that lived in a motorhome and travelled through Europe all year long were still considered Dutch residents, because they visited their relatives in Holland on a regular basis. So it is not as straightforward as the simple 180 days/year rule.

 

[Mtrader]

In France the top income tax bracket is 75%, so going dark comes with a significant risk.

The 75% taxation for income above 1 million euro has been abolished for 2015. Highest taxation level on income is around 41% now.

Monaco is only a solution if you REALLY go and live there. Not for 3 months a year, without the kids......

 

[marketsurfer]

Invite me, I want to attend the F1.

surf

 

[luisHK]

The 75% taxation for income above 1 million euro has been abolished for 2015. Highest taxation level on income is around 41% now.

Monaco is only a solution if you REALLY go and live there. Not for 3 months a year, without the kids......

I'm a bit tired right now to come up with links but income tax is a small part of what one has to pay if french resident. Mandatory social contributions are mighty and wealth tax hurts as well if one is worth more than a few eurocents and declare all his assets (or the tax authorities find them out)
But i don't doubt your claim that Monaco is only/mostly good for those who really live there (and are not french citizens), which still sounds like a good deal

 

[londonkid]

In France the top income tax bracket is 75%, so going dark comes with a significant risk. Besides that, I don't trust the tax authorities one bit if they get their claws in you. In Holland there have been court rulings, in which people, that lived in a motorhome and travelled through Europe all year long were still considered Dutch residents, because they visited their relatives in Holland on a regular basis. So it is not as straightforward as the simple 180 days/year rule.

yes I concur with the significant risk Ditch. This is 2015 not 1980 where things could be brushed under the carpet. For me with a family I personally would not want to risk 'going Dark' it is simply not worth it. I know the UK residency tests are very aggressive now, basically if you turn up in the UK and take a piss then you owe HMRC a cheque.

I am actually not against paying taxes and I am happy to pay 20% on all my earnings, anything above that I am not a fan of.

As another poster points out I think the Monaco deal could only work if you actually live there and can afford to stay in a comfortable property.

 

[luisHK]

There you go, a few links in french, you must add income tax (which it shows a maximum of 45% for 2014 rather than 41%), social contributions (those are for independant workers, they are different for employees, but from memories of conversations, net salaries in France for highly paid executive correspond to slightly less than half what the company has initially spent on the salary, they pay their income tax on top of that - I can dig up the exact numbers later) than ISF, or wealth tax.

income tax :
http://www.calcul-impot-revenu-2015.fr/conseil-bareme-tranches-impot-revenu

mandatory social contributions for independant :
http://vosdroits.service-public.fr/professionnels-entreprises/F31233.xhtml

wealth tax :
https://fr.wikipedia.org/wiki/Impôt_de_solidarité_sur_la_fortune#Bar.C3.A8me_2013_et_2014_de_l.27ISF

 

[londonkid]

Invite me, I want to attend the F1.

surf

I would highly recommend it although I haven't been to the F1. If you are into Classic's you can check out Prince Rainiers private car collection, public entry no problem.

http://www.palais.mc/en/museum-and-visits/private-collection-of-antique-cars-1-27.html

The 7min helicopter transfer from Nice airport is a must for you at 200 euros return. You wont be able to do this on F1 day though.

 

[Mtrader]

There you go, a few links in french, you must add income tax (which it shows a maximum of 45% for 2014 rather than 41%), social contributions (those are for independant, they are different for employees, but from memories of conversations, net salaries in France for highly paid executive correspond to slightly less half what the company has spent on it, they pay their income tax on top of that - I can dig up the exact numbers later) than ISF, or wealth tax.

This is the case in most European countries. Employer pays around 2.5 times the amount that the employee receives net. Self employed people lose till 70% of their income to taxes and social security. So if they earn 100 euro, they can spent net 30 euro, all the rest goes to the government.

 

[marketsurfer]

I would highly recommend it although I haven't been to the F1. If you are into Classic's you can check out Prince Rainiers private car collection, public entry no problem.

http://www.palais.mc/en/museum-and-visits/private-collection-of-antique-cars-1-27.html

The 7min helicopter transfer from Nice airport is a must for you at 200 euros return. You wont be able to do this on F1 day though.

Very cool. thanks for the info! I am trying to attend the F1 without getting ripped off like a typical tourist-- anyone who can provide guidance is welcome to advise. Thanks!