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For wealthy Americans, Monaco is the new Palm Beach — without the taxes.
A wave of wealthy Americans is flocking to that European city-state, trading rising tax burdens at home for Mediterranean breezes, luxury shopping and fiscal leniency in the storied principality.
The tiny sovereign state on the French Riviera — long a favorite of European royals and Formula One fans — has recently caught the attention of high-net-worth US citizens in growing numbers, said top local property agents.
The influx has been especially pronounced in recent weeks, with prime rentals commanding over $50,000 a month.
“I’ve been actively working this market for more than 20 years,” Caroline Olds, a luxury real estate agent in Monaco, told the Daily Mail. “I’ve come across more and more Americans moving here in the last four weeks, in particular for rentals that are $50,000 plus a month. So something is changing.”
With no personal income tax, no wealth tax and generally no capital gains tax for residents who are not French nationals, Monaco offers financial incentives that few jurisdictions can match.
Expats must prove they have at least $550,000 in savings, a clean criminal record and a lease or property purchase to establish residency. From there, they can apply for a long-term visa through the French consulate and then seek official Monegasque residency.
Though Americans must still file US tax returns and report global income, many reduce their liability by claiming the Foreign Earned Income Exclusion — potentially shielding over $100,000 of foreign earnings from US taxes if they qualify.
Beyond financial perks, Monaco’s pristine setting — wedged between France and the Mediterranean Sea — has long been a draw.
“What everybody knows is that it’s completely safe here, that it’s very beautiful and that the crowds are very, very nice,” Olds said. “We are sophisticated people with a lot in common.”
The country’s manageable size and cosmopolitan population make it surprisingly easy to form connections, she added.
Olds said Monaco it’s very inclusive, adding “it’s possible to get into the best universities and schools in the world from here.”
Though Monaco uses the euro and abides by some French laws, it maintains its own government and borders. The result is a distinct cultural identity — equal parts Riviera chic and financial haven.
“Everything here is easily accessible,” Olds said. “Top quality of everything, whatever you need. Great clothes, food, everything is here.”
The country’s English-speaking environment also lowers the barrier for American transplants.
“Americans can speak English,” she said. “And do not need to speak any other languages.”
Realtors say the recent uptick in demand is due in part to growing unease among US property owners, especially in traditional second-home destinations.
Baby Boomers in markets like Maine — where nearly 20% of homes were second residences as of 2019 — have begun shedding vacation properties in response to a turbulent housing market.
Sotheby’s International Realty’s Alexander Kraft, who sells high-end homes in the principality and lives there himself, attributes the rising interest from Americans to broader unrest.
“Especially in challenging times, Monaco is a safe haven of peace,” he told the Daily Mail. “Contrary to other destinations, it is not in some far-flung location but easily accessible in one of the most desirable corners of the world.”
He added, “In Monaco, one can safely enjoy the best life has to offer, without the constant political or economical challenges of so many other countries.”
Residents also enjoy a robust Mediterranean lifestyle — complete with fine dining, sea access and no shortage of luxury amenities. The country’s iconic Casino Monte Carlo has been featured in James Bond films like “Never Say Never Again” and “GoldenEye.”
Its coastline is dotted with beach clubs and restaurants near Larvotto Beach, popular for sunbathing, swimming, and water sports.
“The food is excellent,” said Olds. “I went to the US for three weeks, and compared to Monaco, the food is inedible.”
For those who can afford the buy-in, the appeal of the Riviera enclave lies not just in the tax code or scenery — but in the promise of a more secure, curated life.
“Monaco feels like a little village,” Olds said. “The quality is unbelievable.”
English (US)