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This analysis will outline how at least 3 out of 4 people living in Monaco is a millionaire.
The common notion for over a decade has been that 1 out of 3 people living in Monaco is a millionaire which is an outdated number. Read any article about Monaco or watch a travel video on YouTube and the number is often repeated, 1 out of 3 people living in Monaco is a millionaire.
First let us describe who can actually live in Monaco. Monaco is split between two classes, the first group are those that are citizens and are also referred to as Monégasque and the second group are those with a residency permit.
The total population of Monaco is about 38,000 people. Out of these 38,000 people, approximately 29,000 hold a residency permit which is about 76%. This is where the analysis alone points to approximately 3 out of 4 people living in Monaco being millionaires based on the requirements.
How does one become a permit holding resident of Monaco? There is a list of requirements, but since we are focusing on the financial aspects of being a resident by permit, we shall take a closer look. One of the requirements is that someone seeking a residency permit deposit €500,000 (approximately US$550,000) into a Monaco bank. Some banks will only work with you if you deposit €1,000,000 (approximately US$1,100,000). Now let us stop right here, do you think non-millionaires have US$550,000 to US$1,100,000 lying around to deposit into a bank to show that they have the means to support themselves?
The next financial level requirement to get a Monaco residency permit is to show that you have a place to live every year which leaves two options, you either own a home in Monaco or you rent. Now, if you own a home in Monaco as a resident, it is a full stop, you are a millionaire and no further analysis is needed. A standard studio or 1-bedroom apartment costs €2,000,000 (US$2,200,000). Plus, a home owner has at least US$550,000 in a Monaco bank. For those who are not homeowners, you need to rent a place and show proof that you will be paying rent for 12 months. A basic studio apartment goes for €3,500 (US$3,850) per month and you normally have to pay 3-months in advance (US$11,500) or if the owner does not trust you, you have to pay 12-months in advance (US$46,200).
How long do you have to be physically living in Monaco per year to get your residency permit? Depends on why you want to live in Monaco, but for tax residency purposes, it is 183 days out of the year or roughly six months. For many people, Monaco is also just a second home.
Now, we start to get the full picture, roughly 75% of the people living in Monaco is through a residency permit where they need to deposit US$550,000 to US$1,100,000 and then either own a multi-million dollar apartment or be able to afford the monthly rent of an apartment.
Now let us take a look at the Monégasque citizens. Out of the roughly 9,000 citizens, approximatly 12% became naturalized. In order to be naturalized, there is a list of requirements, but the financial ones are that you have lived in Monaco for at least 10 years and the Prince himself has to deem you worthy to grant you citizenship. How do you become worthy? One of the ways is being an “Individual who is well integrated into the economic, social or cultural life of the Principality.” What does this mean? It means you are probably quite the philanthropist donating millions to Monaco charities.
If we look at 76% of the residency permit holders and 12% of the Monégasque citizens by naturalization, it is quite easy to see how at least 3 out of 4 people living in Monaco is a millionaire.
