Debunking The Myth of Monaco’s Golden Visa

Monaco is a tiny but very wealthy country on the French Riviera. It is famous for its luxurious lifestyle, appealing tax framework, and top-notch living conditions. Many people dream of moving here, but they often believe there is a Golden Visa-style straightforward “pay to stay” option. In reality, Monaco’s approach is a bit more nuanced.

In this guide, we will walk you through the key steps to secure a Monaco residence permit, often compared to a “Golden Visa” in other countries, and clarify the myths surrounding real estate or direct investment pathways.

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Does Monaco Actually Have a Golden Visa Program?

A “Golden Visa” typically refers to a program that grants you residency—or even citizenship—in return for purchasing real estate or making a set investment in a country. Well-known examples include Portugal’s Golden Visa, where investing above certain thresholds can lead to residency. Several Caribbean countries and Malta have “Citizenship by Investment” schemes, in which sizeable contributions or real estate purchases can grant you not only the residency permit but also passport.

Of course, Monaco does not offer an official passport-through-investment route. You cannot simply invest in real estate or a local business and obtain a Monegasque passport.

Still, for the residence permit, the principality does operate in a way that somehow resembles a Golden Visa system: to become a resident, you must show that you have the financial resources to sustain your lifestyle in Monaco. In practice, many applicants do this by depositing a large amount—often starting at around €500,000—into a Monaco bank account. This deposit reassures the local authorities that you can meet your ongoing living expenses.

So, although you will not automatically become a citizen by making an investment, you can get a residence permit if you prove ample financial means. This deposit-based model is quite similar to some Golden Visa programs, but it is not labeled as such by the Monegasque government.

Other Ways to Prove Your Financial Capacity

Aside from placing a significant deposit in a Monegasque bank, there are several other ways to prove that you can comfortably support yourself in Monaco:

Family reunification: You can qualify if you are joining a spouse or close relative who already resides in Monaco.
Employment or self-employment: You can show a valid work contract or run a recognized business in Monaco, demonstrating a steady income stream.
Purchasing or managing a local company: You could buy an existing business or become its director, thus providing evidence of ongoing income.
Retirement with sufficient assets: If you have a dependable pension and enough savings, you can rely on those as proof of your ability to sustain yourself.
Being sponsored by a Monaco resident: A partner, spouse, parent, or close relative who already has a residence permit can financially vouch for you.

Although direct investments in real estate or local enterprises do not automatically grant you residency, owning property or having business ties in Monaco can certainly boost your credibility. Nonetheless, for affluent individuals who want a straightforward route, showing a large bank balance in Monaco remains the most typical strategy.

Can I Get the Residency by Investing in Real Estate?

Simply buying real estate in Monaco does not, by itself, fulfill the formal requirement to show ongoing financial sufficiency. However, because property in Monaco is extremely costly, anyone able to acquire real estate here can likely meet the deposit criteria as well.

Investing in local property can still reinforce your overall application. It shows economic commitment and can help build your financial profile. Officially, though, it’s not a direct substitute for demonstrating that you have adequate resources to live in the principality.

Understanding the Local Real Estate Market

If you plan to invest in Monaco property, be aware that it is one of the priciest markets worldwide. Entry-level apartments often start at around €1,000,000, and prices in prime districts can range between €50,000 and €100,000 per square meter.

In addition to the purchase price, be prepared for extra expenses:

Notary and registration fees: Usually about 4.5% of the property value.
Real estate agent’s commission: Often around 3% of the purchase price.
Deposit on reservation: Typically 10% of the sale price when you commit to the property.
Legal fees for due diligence: These can be between 2% and 4% of the purchase amount.

Some of these costs may be subject to VAT at 20%. Rental yields in Monaco can be quite strong, which might provide an ongoing revenue stream that helps prove your financial reliability. Nonetheless, be sure to comply with local residency rules and all regulations on property rentals.

Who Is Covered by the Residence Permit?

When you obtain a Monaco residence permit, the following family members are eligible:

You, as the principal applicant.
Your children who are financially dependent on you.
Your spouse.

Children under 16 do not receive a standard permit. Instead, they can apply for a special document de circulation pour mineur étranger. Meanwhile, your parents or grandparents are typically not covered by your residence permit unless they apply on their own merits.

Benefits of Becoming a Resident

Monaco is celebrated worldwide for its low crime rates, political stability, excellent healthcare, and top educational institutions. The principality has a strong, disciplined economic framework, which is reflected in its stable banking system.

By gaining Monaco residency, you benefit from:

Visa-free travel in the Schengen area: Monaco residents can freely move within Schengen countries.
Favorable taxation: There is no personal income or capital gains tax for individuals.
Extremely safe environment: Monaco’s security measures and low crime rates are well known.
Convenient location: Nice Airport is a short drive away, and the region offers easy connectivity.
Permission to work or do business: A valid residence permit allows you to take up employment or operate a company in Monaco.

Steps and Required Documents

The procedure for obtaining a residence permit depends on your nationality:

EU/EEA/Swiss citizens: You can apply directly for the residence card. You do not need a French long-term visa (type D).
Non-EU/EEA/Swiss citizens: You must first secure a type-D long-stay visa from the French authorities before starting the Monaco residence application.

Standard documentation usually includes:

Application form and photo: Basic paperwork required of all applicants.
Evidence of Monaco accommodation: Either ownership papers or a rental contract under your name—or a document showing your Monaco-based company holds the property.
Proof of sufficient funds: Commonly a substantial bank deposit in Monaco. It can also be a work contract, directorship remuneration, or pension statements.
General documents: Valid passport, birth certificate, health insurance, and a police clearance from your country of origin, if applicable.

Though this may appear straightforward, obtaining professional advice from a local lawyer is highly recommended to ensure a smooth and successful application. If you are contemplating a move to Monaco, feel free to contact us for personalized guidance.

Duration of the Residence Permit

Monaco issues three main types of residence permits:

One-year card (“Carte de séjour de 1 an”): Valid for 12 months, renewable twice, up to a total of three years.
Three-year card (“Carte de séjour ordinaire de 3 ans”): Valid for three years, renewable twice, for a total of nine years.
Ten-year card (“Carte de séjour privilégiée de 10 ans”): Valid for a decade and can be renewed indefinitely.

You generally need to progress through the one-year and then three-year permits before qualifying for the ten-year card. Authorities also check that you maintain genuine ties to Monaco, including actually living there.

Would a Resident in Monaco Pay Taxes?

Monaco is well-known for its minimal personal tax rates. Once you are a resident, you fall under Monaco taxes framework. Individuals typically do not pay income tax or capital gains tax.

However, you might still have tax responsibilities elsewhere, depending on any international business activities or ties to your home country. But within Monaco, there is no direct personal taxation as in many other nations.

How MonacoAdvisers Can Help

We at MonacoAdvisers have supported numerous individuals and families in relocating to the Principality. We guide you through each stage, from confirming banking requirements to ensuring all necessary documents are in order. Whether you plan to show funds in a local account or use another approach to demonstrate your financial standing, we can offer practical tips and contacts.

For personalized support or any questions about moving to Monaco, do not hesitate to reach out by email at [email protected] or through our online contact form. We would be happy to make your transition to Monaco as seamless as possible.

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