Decoding the strange country of Monaco, where millionaires also struggle to find “land for planting”
Bar magnet attracts the super rich
There are unthinkable things that can only happen in Monaco. Here, people not only struggle to find accommodation for people but also have to compete for parking spaces for expensive superyachts. Every vacant piece of land is used to build a house, and scarcity is also the reason why you have money but you may not have found a satisfactory place to live.
Monaco is a small country on the coast, located between the French towns of Èze and Menton. This land of less than 2 square kilometers is a special place with its own laws and state. There are 38,000 people living in Monaco and 30% of them are millionaires.
It has particularly high rates of private jet and yacht ownership. Although small, this country also has a Formula 1 race track and world-famous casinos. Many films are set in this Principality.
In contrast to the “modest” area, Monaco becomes especially attractive to the super-rich because of its extremely favorable tax policy. It is even called a magnet for the super-rich. Since the House of Grimaldi (Royal Monaco) established the principality over 700 years ago, they have the right not to charge income tax on anyone living in their country.
Profitable businesses do not have to pay taxes on such profits in Monaco. Residents also don’t have to pay property taxes or even taxes on the gains on their investments. However, if the property is moved out of this principality, one will be subject to a 33% tax.
However, people here still have to pay VAT according to French regulations on all goods circulating in the principality. French residents in Monaco continue to have to comply with French tax regulations or have to renounce their citizenship, which many people still do.
A country running out of land
It is the attractiveness of Monaco that makes many people want to move here to live. City planners estimate an additional 2,700 people will become Monaco residents over the next 10 years, equivalent to a population growth of more than 7%.
Because of the scarcity of space, real estate prices in Monaco have been pushed up sky-high. This is the place with the most expensive house in the world. The real estate price here is about 100,000 USD/m2. However, even with money, finding a suitable home is not easy.
As for the Monaco government, building a new house is also a difficult problem. After building houses on the mountainside and digging into the ground as deeply as possible, projects to expand into the sea were carried out to gain more land. Run by French company Bouygues Travaux Public, a reclamation project will add 6.07 hectares of land to Monaco by 2026. It includes more than 120 homes and 30 new piers. This is not the first time the principality has expanded into the sea. According to the BBC, the country has increased by about 20% in area since 1861.
However, there are also voices of environmental concern emerging around Monaco’s reclamation projects. The encroachment forced people to bring huge structures, filled with concrete and sealed to be pulled out to sea. Then, they will be sunk to a predetermined position before sanding to create an artificial land. This will destroy the marine ecosystem.
Therefore, developer Bouygues is planning to move the undersea flora and fauna to another area through artificial coral reefs. However, the real impact of these measures on the environment is something no one can calculate.
For Prince Albert II, who leads the Principality of Monaco, this was a difficult decision. He is the one who has donated millions of dollars of his personal fortune to environmental charities. As a leader, he will be forced to weigh the environmental risks and potential economic benefits, which is vital for a small country like Monaco.
Monaco’s economy is mainly based on tourism. Banking and casinos have been around since 1862. Preferential tariffs attract foreign companies. Industries include: cosmetic manufacturing, chemicals, electronics, shipbuilding, construction… Monaco fully integrates tariffs with France to collect and reduce trade taxes, and at the same time participates in the system. EU market through a customs union with France.
Tourist services and tax collection from casinos are Monaco’s main source of income (25% PIB). The banking-finance industry developed strongly and steadily. The industry focuses mainly on light industry, which does not damage the environment and has a high value-added content, accounting for 8% of budget income. Although not yet an official member of the EU, Monaco has a close relationship with this organization through the General Agreement on Tariffs with France. Monaco’s currency is also the euro.
at Blogtuan.info – Source: Kenh14.Vn – Read the original article here
