Why Monaco Benefits From Geopolitical Developments
Significant Increase of GDP Per capita
Against the backdrop of increasing political tensions and economic risks, more and more wealthy people around the globe are looking for a safe haven. Monaco is benefiting from this: the principality has increased its per capita income by almost a third over the past decade. Further growth is to be expected in the future, according to experts at Monaco Day 2025 in Davos.
No current figures for 2024 are yet available, but the data for the previous year published in November 2024 already show a clear trend. Monaco’s gross domestic product (GDP) amounted to EUR 9.24 billion in 2023 which was 5% higher than the previous year after adjusting for inflation. Over a ten-year period, growth amounted to a whopping 46.5%. In the same period, GDP per capita rose by 26% to almost EUR 100,000.
Security and tax benefits
According to experts, a major reason is the financial and political stability of the principality. “High security, low risks and strong asset protection make Monaco internationally attractive,” said Robert Laure, Chairman of the Monegasque Association of Financial Activities (AMAF) at Monaco Day on the occasion of the World Economic Forum 2025 in Davos.
The international political tensions have led to the wealthy looking for security. “In addition, there is a need to raise taxes in many countries. This is one of the reasons why more people from all over the world have come to Monaco in recent years,” added Xavier de Sarrau, Managing Partner of Gordon S. Blair Monaco.
However, the tax advantages alone are no longer sufficient today. “Tax havens are being tombed. What will survive are places where you can live and enjoy life.”
Strict screening process
Monaco’s core sectors, which have been growing for years, include finance and insurance, wholesale, scientific and technical activities, and administrative services. However, locating a company in Monaco is more complex than anywhere else. The approval process takes about two months due to strict screening. In order to obtain a residence permit, various criteria must also be met, such as sufficient assets (according to market experts, the minimum is one million Euro in assets) or a sufficiently large property. “Unlike 20 years ago, the authorities are looking very closely and checking whether the number of bedrooms is sufficient for the family,” Xavier de Sarrau stressed.
Interest in single-family offices
Monaco is particularly advantageous for asset management, especially since the infrastructure required for this is available and proven. “The authorities understand very well and better than in other places in the world what exactly is required to set up a trust,” says Xavier de Sarrau. Experience has shown that Monaco is very open, especially to attracting single-family offices. And when it comes to renting commercial real estate, the price level is surprisingly lower for many than in some other locations such as Geneva – while private housing in Monaco has always been expensive.
