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The '''economy of Monaco''' is reliant on tourism and banking.<ref name = ciaworldfactbook>{{cite web | title = Monaco | url = https://www.cia.gov/the-world-factbook/countries/monaco/ | website = The World Facebook | publisher = CIA | access-date = 29 October 2019}}</ref> [[Monaco]], situated on the French coast of the [[Mediterranean Sea]], is a popular resort, attracting tourists to its casino and pleasant climate.
The '''economy of Monaco''' is reliant on tourism and banking.<ref name = ciaworldfactbook>{{cite web | title = Monaco | url = https://www.cia.gov/the-world-factbook/countries/monaco/ | website = The World Facebook | publisher = CIA | access-date = 29 October 2019}}</ref> [[Monaco]], situated on the French coast of the [[Mediterranean Sea]], is a popular resort, attracting tourists to its casino and pleasant climate.


The [[Principality]] has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. The state has no [[income tax]] and low business taxes and thrives as a [[tax haven]] both for individuals who have established residence and for foreign companies that have set up businesses and offices. The state retains [[Monopoly|monopolies]] in a number of sectors, including gambling, tobacco, the telephone network, and the postal service.<ref>https://en.gouv.mc/Portail-du-Gouvernement/Government-Institutions/The-Government/Ministry-of-Finance-and-Economy/Tobacco-and-Matches-Board</ref>{{Citation needed|date=July 2020}}
The [[Principality]] has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. The state has no [[income tax]] and low business taxes and thrives as a [[tax haven]] both for individuals who have established residence and for foreign companies that have set up businesses and offices. The state retains [[Monopoly|monopolies]] in a number of sectors, including gambling, tobacco, the telephone network, and the postal service.<ref>https://en.gouv.mc/Portail-du-Gouvernement/Government-Institutions/The-Government/Ministry-of-Finance-and-Economy/Tobacco-and-Matches-Board {{bare URL inline|date=May 2023}}</ref>{{Citation needed|date=July 2020}}


[[File: Rubber discs for suctions-5.jpg|thumbnail|right|Denture adhesion rings made in Monaco, early to mid 20th century]]
[[File: Rubber discs for suctions-5.jpg|thumbnail|right|Denture adhesion rings made in Monaco, early to mid 20th century]]
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Low taxes have drawn many foreign individuals to Monaco and account for around 75% of the $7.78 billion annual GDP income in (2021). Similarly, tourism accounts for close to 15% of the annual revenue, as the Principality of Monaco also has been a major center for tourism ever since the famed [[Monte Carlo Casino]] was established in 1856.
Low taxes have drawn many foreign individuals to Monaco and account for around 75% of the $7.78 billion annual GDP income in (2021). Similarly, tourism accounts for close to 15% of the annual revenue, as the Principality of Monaco also has been a major center for tourism ever since the famed [[Monte Carlo Casino]] was established in 1856.


Financial and insurance activities, along with scientific- support-administrative, activities are the main contributors to the GDP of Monaco. Wholesale trades (10%), construction(9.1%) and real estate activities (7.8%) also contribute highly to the country's GDP.<ref>[http://www.monacostatistics.mc/Economy-and-Finance/ GDP Gross Domestic Product]</ref> Monaco real estate is known to be one of the most expensive in the world.<ref>https://robbreport.com/shelter/monaco-most-expensive-buy-home-1234604753/</ref><ref>https://www.google.com/search?q=monaco+most+expensive+real+estate+forbes&biw=1512&bih=747&sxsrf=APwXEdcRaS68xSE6T5dheur6ADBRCyPh3g%3A1682025218663&ei=AqtBZO2XKMuekdUPg9elmAc&ved=0ahUKEwjtoKWdsLn-AhVLT6QEHYNrCXM4FBDh1QMIDw&uact=5&oq=monaco+most+expensive+real+estate+forbes&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQAzIFCCEQoAEyBQghEKABMgUIIRCgATIFCCEQoAE6CggAEEcQ1gQQsAM6BggAEBYQHjoICAAQigUQhgM6BQghEKsCOggIIRAWEB4QHUoECEEYAFCeB1j7DGDJDWgBcAF4AIABgAGIAaYFkgEDMS41mAEAoAEByAEIwAEB&sclient=gws-wiz-serp</ref><ref>https://www.forbesindia.com/article/forbes-lifes/monaco-paradise-city/52333/1</ref><ref>https://www.scmp.com/magazines/style/luxury/article/3144522/monaco-beats-hong-kong-most-expensive-real-estate-planet-how</ref><ref>https://en.savills.mc/insight-and-opinion/savills-news/300631-0/monaco-still-the-most-expensive-real-estate-market-in-the-world</ref> Banking sector of Monaco is rather large: in 2015 consolidated banking assets 8.42 times exceeded the country's GDP. Banks operating in Monaco traditionally specialize in private banking, asset and wealth management services. Wholesale trade, construction and real estate sectors come afterward in the ranking. <ref>https://www.monacostatistics.mc/Economy-and-Finance/GDP</ref>
Financial and insurance activities, along with scientific- support-administrative, activities are the main contributors to the GDP of Monaco. Wholesale trades (10%), construction(9.1%) and real estate activities (7.8%) also contribute highly to the country's GDP.<ref>[http://www.monacostatistics.mc/Economy-and-Finance/ GDP Gross Domestic Product]</ref> Monaco real estate is known to be one of the most expensive in the world.<ref>https://robbreport.com/shelter/monaco-most-expensive-buy-home-1234604753/ {{bare URL inline|date=May 2023}}</ref><ref>https://www.google.com/search?q=monaco+most+expensive+real+estate+forbes&biw=1512&bih=747&sxsrf=APwXEdcRaS68xSE6T5dheur6ADBRCyPh3g%3A1682025218663&ei=AqtBZO2XKMuekdUPg9elmAc&ved=0ahUKEwjtoKWdsLn-AhVLT6QEHYNrCXM4FBDh1QMIDw&uact=5&oq=monaco+most+expensive+real+estate+forbes&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQAzIFCCEQoAEyBQghEKABMgUIIRCgATIFCCEQoAE6CggAEEcQ1gQQsAM6BggAEBYQHjoICAAQigUQhgM6BQghEKsCOggIIRAWEB4QHUoECEEYAFCeB1j7DGDJDWgBcAF4AIABgAGIAaYFkgEDMS41mAEAoAEByAEIwAEB&sclient=gws-wiz-serp {{bare URL inline|date=May 2023}}</ref><ref>https://www.forbesindia.com/article/forbes-lifes/monaco-paradise-city/52333/1 {{bare URL inline|date=May 2023}}</ref><ref>https://www.scmp.com/magazines/style/luxury/article/3144522/monaco-beats-hong-kong-most-expensive-real-estate-planet-how {{bare URL inline|date=May 2023}}</ref><ref>https://en.savills.mc/insight-and-opinion/savills-news/300631-0/monaco-still-the-most-expensive-real-estate-market-in-the-world {{bare URL inline|date=May 2023}}</ref> Banking sector of Monaco is rather large: in 2015 consolidated banking assets 8.42 times exceeded the country's GDP. Banks operating in Monaco traditionally specialize in private banking, asset and wealth management services. Wholesale trade, construction and real estate sectors come afterward in the ranking. <ref>https://www.monacostatistics.mc/Economy-and-Finance/GDP {{bare URL inline|date=May 2023}}</ref>


An economic and customs union with France governs customs, postal services, telecommunications, and banking in Monaco. Before the [[euro]], Monaco used the [[Monegasque franc]], which itself was pegged to the [[French franc]]. Now part of the [[Eurozone]], but not the EU, Monaco mints [[Monegasque euro coins|its own euro coins]].
An economic and customs union with France governs customs, postal services, telecommunications, and banking in Monaco. Before the [[euro]], Monaco used the [[Monegasque franc]], which itself was pegged to the [[French franc]]. Now part of the [[Eurozone]], but not the EU, Monaco mints [[Monegasque euro coins|its own euro coins]].
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In 1998, the Organisation for Economic Co-operation and Development (OECD) issued a first report on the consequences of the tax havens' financial systems. Monaco did not appear in the list of these territories until 2004, when OECD became indignant regarding the Monegasque situation and denounced it in its last report, as well as Andorra, Liechtenstein, Liberia and the Marshall Islands, underlining its lack of co-operation as regards to financial information disclosure and availability.
In 1998, the Organisation for Economic Co-operation and Development (OECD) issued a first report on the consequences of the tax havens' financial systems. Monaco did not appear in the list of these territories until 2004, when OECD became indignant regarding the Monegasque situation and denounced it in its last report, as well as Andorra, Liechtenstein, Liberia and the Marshall Islands, underlining its lack of co-operation as regards to financial information disclosure and availability.


In 2000, the Financial Action Task Force on Money Laundering (FATF) stated: "The anti-money laundering system in Monaco is comprehensive. However, difficulties have been encountered with Monaco by countries in international investigations on serious crimes that appear to be linked also with tax matters. In addition, the FIU of Monaco (SICCFIN) suffers a great lack of adequate resources. The authorities of Monaco have stated that they will provide additional resources to SICCFIN." The Principality is no longer blamed in the 2005 FATF report, as well as all other territories. In 2003, the International Monetary Fund (IMF) has identified Monaco, along with 36 other territories, as a tax haven but Monaco came out of that list in 2009. <ref>https://www.latribune.fr/entreprises-finance/banques-finance/industrie-financiere/20090924trib000425657/paradis-fiscaux-monaco-retire-de-la-liste-grise-de-l-ocde-la-suisse-devrait-suivre.html</ref> <ref>https://www.lecho.be/economie-politique/europe/economie/huit-pays-disparaissent-de-la-liste-des-paradis-fiscaux/9974841.html</ref> <ref>https://taxation-customs.ec.europa.eu/common-eu-list-third-country-jurisdictions-tax-purposes_fr</ref>
In 2000, the Financial Action Task Force on Money Laundering (FATF) stated: "The anti-money laundering system in Monaco is comprehensive. However, difficulties have been encountered with Monaco by countries in international investigations on serious crimes that appear to be linked also with tax matters. In addition, the FIU of Monaco (SICCFIN) suffers a great lack of adequate resources. The authorities of Monaco have stated that they will provide additional resources to SICCFIN." The Principality is no longer blamed in the 2005 FATF report, as well as all other territories. In 2003, the International Monetary Fund (IMF) has identified Monaco, along with 36 other territories, as a tax haven but Monaco came out of that list in 2009. <ref>https://www.latribune.fr/entreprises-finance/banques-finance/industrie-financiere/20090924trib000425657/paradis-fiscaux-monaco-retire-de-la-liste-grise-de-l-ocde-la-suisse-devrait-suivre.html {{bare URL inline|date=May 2023}}</ref> <ref>https://www.lecho.be/economie-politique/europe/economie/huit-pays-disparaissent-de-la-liste-des-paradis-fiscaux/9974841.html {{bare URL inline|date=May 2023}}</ref> <ref>https://taxation-customs.ec.europa.eu/common-eu-list-third-country-jurisdictions-tax-purposes_fr {{bare URL inline|date=May 2023}}</ref>


==See also==
==See also==

Revision as of 11:01, 7 May 2023

Economy of Monaco
CurrencyEuro (EUR, €)
calendar year
Trade organisations
EUCU
Country group
High-income economy[1]
Statistics
PopulationSteady 39,150 (1 January 2021 est.)[2]
GDP
  • Increase $7.97 billion (nominal, 2021)[3]
  • Increase $7.672 billion (PPP, 2015 est.)[4]
GDP rank
GDP growth
  • 4.9% (2015) 3.5% (2016)
  • −3.4% (2017) 6.1% (2018)[5]
GDP per capita
  • Increase $185,741 (nominal, 2018)[6]
  • Increase $115,700 (PPP, 2015 est.)[4]
GDP per capita rank
GDP by sector
All values, unless otherwise stated, are in US dollars.

The economy of Monaco is reliant on tourism and banking.[8] Monaco, situated on the French coast of the Mediterranean Sea, is a popular resort, attracting tourists to its casino and pleasant climate.

The Principality has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. The state has no income tax and low business taxes and thrives as a tax haven both for individuals who have established residence and for foreign companies that have set up businesses and offices. The state retains monopolies in a number of sectors, including gambling, tobacco, the telephone network, and the postal service.[9][citation needed]

Denture adhesion rings made in Monaco, early to mid 20th century

Background

Economic development was spurred in the late 19th century with the opening of the rail link to France and the Monte Carlo Casino. Monaco's economy is now primarily geared toward finance, services, and real estate.

Modern times

Low taxes have drawn many foreign individuals to Monaco and account for around 75% of the $7.78 billion annual GDP income in (2021). Similarly, tourism accounts for close to 15% of the annual revenue, as the Principality of Monaco also has been a major center for tourism ever since the famed Monte Carlo Casino was established in 1856.

Financial and insurance activities, along with scientific- support-administrative, activities are the main contributors to the GDP of Monaco. Wholesale trades (10%), construction(9.1%) and real estate activities (7.8%) also contribute highly to the country's GDP.[10] Monaco real estate is known to be one of the most expensive in the world.[11][12][13][14][15] Banking sector of Monaco is rather large: in 2015 consolidated banking assets 8.42 times exceeded the country's GDP. Banks operating in Monaco traditionally specialize in private banking, asset and wealth management services. Wholesale trade, construction and real estate sectors come afterward in the ranking. [16]

An economic and customs union with France governs customs, postal services, telecommunications, and banking in Monaco. Before the euro, Monaco used the Monegasque franc, which itself was pegged to the French franc. Now part of the Eurozone, but not the EU, Monaco mints its own euro coins.

All residents pay tax in the form of 20% value-added tax on all goods and services.[17]

Monaco is noted for its activity in the field of marine sciences. Its Oceanographic Museum, formerly directed by Jacques-Yves Cousteau, is one of the most renowned institutions of its kind in the world. Monaco import and exports products and services from all over the world. There is no commercial agriculture in Monaco; it is 100% urban.

Tax haven

Monaco levies no income tax on individuals. The absence of a personal income tax in the principality has attracted to it a considerable number of wealthy "tax refugee" residents from European countries who derive the majority of their income from activity outside Monaco; celebrities such as Formula One drivers attract most of the attention, but the vast majority of them are less well-known business people.

In 2000, a report by the French parliamentarians, Arnaud Montebourg and Vincent Peillon, alleged that Monaco had lax policies with respect to money laundering, including within its famed casino, and that the government of Monaco had been placing political pressure on the judiciary so that alleged crimes were not properly investigated.

In 1998, the Organisation for Economic Co-operation and Development (OECD) issued a first report on the consequences of the tax havens' financial systems. Monaco did not appear in the list of these territories until 2004, when OECD became indignant regarding the Monegasque situation and denounced it in its last report, as well as Andorra, Liechtenstein, Liberia and the Marshall Islands, underlining its lack of co-operation as regards to financial information disclosure and availability.

In 2000, the Financial Action Task Force on Money Laundering (FATF) stated: "The anti-money laundering system in Monaco is comprehensive. However, difficulties have been encountered with Monaco by countries in international investigations on serious crimes that appear to be linked also with tax matters. In addition, the FIU of Monaco (SICCFIN) suffers a great lack of adequate resources. The authorities of Monaco have stated that they will provide additional resources to SICCFIN." The Principality is no longer blamed in the 2005 FATF report, as well as all other territories. In 2003, the International Monetary Fund (IMF) has identified Monaco, along with 36 other territories, as a tax haven but Monaco came out of that list in 2009. [18] [19] [20]

See also

Notes

  1. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  2. ^ "Monaco Employment". monacostatistics.mc. Monaco Statistics. Retrieved 20 April 2023.
  3. ^ "GDP (current US$) - Monaco". monacostatistics.mc. Monaco Statistics. Retrieved 3 February 2020.
  4. ^ a b "EUROPE :: MONACO". CIA.gov. Central Intelligence Agency. Retrieved 3 February 2020.
  5. ^ "GDP growth (annual %) - Monaco". data.worldbank.org. World Bank. Retrieved 3 February 2020.
  6. ^ "GDP per capita (current US$) - Monaco". data.worldbank.org. World Bank. Retrieved 3 February 2020.
  7. ^ "Monaco Employment". monacostatistics.mc. Monaco Statistics. Retrieved 20 April 2023.
  8. ^ "Monaco". The World Facebook. CIA. Retrieved 29 October 2019.
  9. ^ https://en.gouv.mc/Portail-du-Gouvernement/Government-Institutions/The-Government/Ministry-of-Finance-and-Economy/Tobacco-and-Matches-Board [bare URL]
  10. ^ GDP Gross Domestic Product
  11. ^ https://robbreport.com/shelter/monaco-most-expensive-buy-home-1234604753/ [bare URL]
  12. ^ https://www.google.com/search?q=monaco+most+expensive+real+estate+forbes&biw=1512&bih=747&sxsrf=APwXEdcRaS68xSE6T5dheur6ADBRCyPh3g%3A1682025218663&ei=AqtBZO2XKMuekdUPg9elmAc&ved=0ahUKEwjtoKWdsLn-AhVLT6QEHYNrCXM4FBDh1QMIDw&uact=5&oq=monaco+most+expensive+real+estate+forbes&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQAzIFCCEQoAEyBQghEKABMgUIIRCgATIFCCEQoAE6CggAEEcQ1gQQsAM6BggAEBYQHjoICAAQigUQhgM6BQghEKsCOggIIRAWEB4QHUoECEEYAFCeB1j7DGDJDWgBcAF4AIABgAGIAaYFkgEDMS41mAEAoAEByAEIwAEB&sclient=gws-wiz-serp [bare URL]
  13. ^ https://www.forbesindia.com/article/forbes-lifes/monaco-paradise-city/52333/1 [bare URL]
  14. ^ https://www.scmp.com/magazines/style/luxury/article/3144522/monaco-beats-hong-kong-most-expensive-real-estate-planet-how [bare URL]
  15. ^ https://en.savills.mc/insight-and-opinion/savills-news/300631-0/monaco-still-the-most-expensive-real-estate-market-in-the-world [bare URL]
  16. ^ https://www.monacostatistics.mc/Economy-and-Finance/GDP [bare URL]
  17. ^ Genta, Evelyne (Monaco Ambassador to the UK) Monaco Might Not Charge Residents Income Tax, But it's No Tax Haven The Telegraph 16 Feb 2010
  18. ^ https://www.latribune.fr/entreprises-finance/banques-finance/industrie-financiere/20090924trib000425657/paradis-fiscaux-monaco-retire-de-la-liste-grise-de-l-ocde-la-suisse-devrait-suivre.html [bare URL]
  19. ^ https://www.lecho.be/economie-politique/europe/economie/huit-pays-disparaissent-de-la-liste-des-paradis-fiscaux/9974841.html [bare URL]
  20. ^ https://taxation-customs.ec.europa.eu/common-eu-list-third-country-jurisdictions-tax-purposes_fr [bare URL]

External links


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