Tax inversions are a big deal in corporate America right now, as well as in the nation’s capitol, where lawmakers are taking aim at them. However, large corporations are not the only ones looking for ways to save money on their taxes. Wealthy individuals are always searching for ways to hold onto more of their heard-earned money, as well. One method many rich people use to lower their tax bill is to move to a foreign country, with much lower tax rates.
Moving on up to Monaco
One of the many popular places for the wealthy to call home is found on the French Riviera, in Monaco. In fact, Monaco is already one of the most popular places to call home for many of the world’s wealthy individuals. According to a study from Spear’s magazine, one out of every three residents of Monaco is a millionaire. With that number continuously growing the country is starting to see a luxury-housing boom. The growth includes one of the most expensive penthouses in the world.
Why the Influx of New Buyers?
With the country’s lower tax rate and its ability to help individuals maintain their banking privacy, developers are expecting more and more of the world’s billionaire and millionaire population to start snatching up luxury homes in the country. There are several factors leading to this expected influx of new buyers. First, with the United States implementing its new Foreign Account Tax Compliance Act (FATCA), it is becoming more difficult for wealthy individuals to keep their banking habits private. Second, Switzerland is experiencing many changes to the country’s financial secrecy laws; and third, London is issuing several new tax levies on luxury homes.
These luxury home and apartment complexes are made with the uber-rich in mind. One double skyscraper of luxury condos currently under construction includes a 35,500 square-foot penthouse that could sell for as much as $400 million when it goes on the market in 2015. If it does reach that price, it would be world’s most expensive penthouse. One of the many features includes a water slide that connects a dance floor to an open-air swimming pool. The developer isn’t having any trouble finding buyers for the condos, either. So far, of the 26 units that have been offered for sale, 26 are spoken for.
Welcome to the Neighborhood
Monaco already counts among its wealthy residents Russian billionaire Dmitry Rybolovlev and singer Shirley Bassey, as well as several Formula One drivers, including Lewis Hamilton. Many of these residents don’t pay taxes on their income. Monaco is great place for the wealthy to show off their spoils, while still keeping a high-level of secrecy at the same time. According to reports, the country is growing so popular amongst the wealthy that many expect the new influx of millionaire and billionaire buyers will require developers to continue expanding by adding more residential skyscrapers.
Monaco Here We Come
As countries from all over the world look for more ways to tax the wealthy, those wealthy individuals will continue to look for more ways to keep their tax bills down. That means low-tax havens like Monaco will most likely continue to grow in popularity.