The OECD mandated end to any tax haven such as Monaco required an end to banking secrecy.
That alone may spell the end of the resourceless principality which has become the playground of the very wealthy since 1869.
Some say the bell tolls but does that herald the end of Monaco as a tax haven or a new direction in the survival of this, the smallest nation on Earth (unless you include the Vatican which has only 1 sq. km. and a population of 920). Monaco has a population of 32,410 with a land area of 1.95 sq. km.
However, the G20 heavy handedness to end tax haven status to a number of jurisdictions pro-campaigners claim will make little difference, because foreign governments will have to provide evidence of an individual’s tax evasion before Monaco agrees to hand over their bank details.
Monaco has a total of 35,000 residents, but 350,000 bank accounts containing total deposits of more than £80bn. Many European nations want their hands on that moneyor at least a larger proportion of it.
But that is not all that’s been happening behind the scenes. Monaco has already complied to many European demands of withholding wealth taxes, providing the Bank of France banking information of French nationals, impose a wealth tax on EU residents.
All of that activity sounds dire to Monaco’s Status as a Tax Haven par excellence. But that principality is not sitting still and leaving themselves at the mercy of the G20 nations.
“Monaco” Exclusive Private Label
The tourist board has embarked on a five-year plan to develop Monaco as a destination brand.
Among its ideas is what was originally called Concept URI or ”ultra-rich individuals” which has since been ratcheted down slightly to include HNWI or high net worth individuals – acknowledging the global economic crisis.
Monaco’s network of 100 honorary consuls dotted around the world have been set the task of identifying some extremely wealthy people, particularly in developing economies such as India, Brazil and Russia.
Will it work? Well, getting ultra wealthy friends from around the world can’t hurt. The number of yachts and the continuation of the Formula 1 show in Monaco still says they do have the right votes.
Prince Rainier the man who created the tax haven of Monaco on the Mediterranean had the right idea.
Being the smallest country in Europe, how else was he to get all the international cash aflowing into such a small principality?
Get the Warriors of the track to live there of course. Cash in on the formula one races’ publicity to get more attention for his little country bringing international exposure and prestige.
Critically what was done was to expand the shore line of Monaco, effectively doubling it’s size by land reclaimation from the sea. This allowed the building of more casinos, great hotels, condos and an expanded harbour for yachts large and small.
Oh, yes, perhaps the most important thing done was to create a personal banking and tax system to rival Switzerland as a tax haven. Taxation has been kept deliberately low too. All done over 50 years ago by Sovereign Charter.
The result? Notice the numbers of racing car drivers who have actually taken Monaco as their residence of choice for tax purposes and to take advantage of their private banking services.
Who can blame them? There are great medical facilities, prestigeous schools, great banks, a play ground for the wealthy and besides, the weather’s great too. All that within anywhere in Europe you care to travel to. Besides, there are more formula one races in Europe than in any other continent.
Here’s a nostalgic F1 Racing in Monaco video by Nero8.
The Monaco of the Far East is no accident. Macao became the money oyster in which many pearls were developed. Today, this is the destination of choice for casino goers. Despite recessionary fears, Macao remains the casino resort of choice for the world. The entire infrastructure is built to cater to tourists. It shows in the relative wealth of its residents.
This is Macao, China – music by Charlie Santos.
The video says it all about the buildings and the culture of the Portugese settlers, mixed with the indeginous Chinese.
Mentioning Macao is incomplete if I did not tell folks about their Grand Prix Race for the world formula 3 championships. Check it out below taken off a Portugese TV coverage.
Macao is a playground for the rich and famous as well as the casual visitor. It is a world casino destination and their real estate prices have been climbing steadily for many years. The standard of living is quite enviable with many of the modern amenities anyone would need.
Of course, China has wisely chosen to give Macao a special status within their rule, similar to Hong Kong.
The OECD mandated end to any tax haven such as Monaco required an end to banking secrecy.
The tourist board has embarked on a five-year plan to develop Monaco as a destination brand.
Prince Rainier the man who created the tax haven of Monaco on the Mediterranean had the right idea.
