| A well respected US magazine recently claimed | | | | bedroom two bathroom apartment at 5,500,000 |
| Monaco has the most overpriced real estate in | | | | Euros. |
| the world, claiming the rental returns as part of | | | | As well as buying a property, to gain residency in |
| their figures meant the tax haven's property | | | | Monaco a bank account needs to be opened in |
| costs were unduly high. | | | | the Principality, with account opening deposits |
| In response a Monaco internet site says the | | | | varying between 100,000 and 500,000 Euros. |
| American magazine are wrong, and have | | | | One thing that could put the brake on the number |
| forgotten why Monaco's property prices are high | | | | of Brits looking to move to Monaco was |
| in the first place. | | | | announced after the magazine's claims about |
| 'The error they made was comparing Monaco | | | | Monaco real estate prices were published. |
| with places like Rome, Warsaw, Los Angeles and | | | | The amount of time British tax exiles can spend |
| Vancouver, and they also overestimated closing | | | | in their home country is being limited by the British |
| costs. While admittedly high in Monaco at around | | | | government, and it could impact the British |
| 11 per cent, it's not common to be 20 per cent | | | | economy, claim a company who specialise in tax |
| that their research was based on.' | | | | haven property and residency. |
| The comparison of 50 financial centres assumed | | | | Up until now a British taxpayer could avoid paying |
| the property was not a main residence and | | | | income tax by taking residency in a tax haven |
| looked at rental returns - another error when | | | | such as Andorra or Monaco, and be allowed to |
| calculating Monaco's property prices according to | | | | spend 90 days a year in Britain before falling foul |
| the Monaco internet guide. | | | | of the Iland Revenue. Importantly both the day |
| 'By law in Monaco rentals are a minimum of one | | | | of arrival and departure into the UK didn't count |
| year, so it's obvious that rental returns are going | | | | as a day. |
| to be less than places where weekly and six | | | | So technically, a tax exile living in Andorra could |
| monthly rentals are possible. To gain residency in | | | | drive to Barcelona airport for a 7am flight to |
| Monaco via renting the residency office needs | | | | London, and given the hour's time difference |
| evidence of a twelve month contract, so Monaco | | | | between Spain and the UK, be comfortably in an |
| is in a unique position when compared to other | | | | office working by lunchtime. |
| leading financial centres.' | | | | Equally, the same tax exile could leave the London |
| 'There is a shortage of available property in | | | | office at 6pm Friday for Barcelona en route to |
| Monaco and high demand that shows no sign of | | | | Andorra - and importantly those five days in the |
| slowing down - given all these factors we just | | | | UK would count only as three of their ninety day |
| think the US magazine's analysis of the Monaco | | | | allowance as the day travelling to and from the |
| real estate scene has been done without taking | | | | UK aren't counted. Which allowed business men |
| local factors into consideration.' | | | | and women to commute from the tax havens of |
| Typical property prices in Monaco at the moment | | | | Andorra and Monaco thirty weeks a year. Some |
| include a second floor studio apartment at | | | | would do Monday to Thursday and could do that |
| 1,100,000 Euros, a one bedroom apartment in | | | | virtually all year and still stay on the right side of |
| Monte Carlo at 2,150,000 Euros, and a three | | | | the British tax man. |