The world's richest country
There is a country in Europe that covers only just over 2 square km of land, and is the second-smallest country in the world, only behind Vatican City. For context, India covers 3.287 million square kms. But the economic might of the country is exactly on the opposite end of the scale. Its per capita GDP is more than $200k, higher than any other country.
We’re talking about Monaco. It is bordered by France on 3 sides and by the Mediterranean Sea in the south. But coming to the topic at hand, the money. One out of every three people in Monaco classify as millionaires. The country has more than 10000 registered millionaires. So why does this one small country have so much of the wealth of the world?
One misconception about Monaco is that it is a tax haven. It is not exactly that. While there is no income tax for residents, there are corporate taxes, property taxes and the like. And you can become a resident by only one of three ways:
Have at least $500k in the bank
Be under the employ of a Monaco-based company
Have your own business
Now you might have a question regarding how the government of Monaco makes money if there is no income tax. One route is obviously all the other types of taxes they charge as I said above. But the government also owns casinos, hotels and real estate in the country, which would give them ample income to conduct their duties. Nevertheless, no personal income tax means people with millions in net worth and income would want to be there.
Another big reason is that wealthy people like being surrounded by other wealthy people. “Your network is your net worth” might only seem to be a tidbit that affluent people tend to repeat when asked for advice, but when you see Monaco you understand that that might actually be very important advice. More so, given the size of the country, you would more often than not stumble into people whose bank accounts seem closer and closer to mobile numbers.
One more reason for the uber-wealthy to come to Monaco is the top-notch safety and security in the country. They have a very low crime rate because, one, most people are well-off anyways and two, the government helps the less fortunate in many ways. It is said that people can easily walk on the streets without the need for bodyguards, something even more affluent European countries might be lacking.
The location of Monaco also attracts the wealthy, who would most likely like to spend their money to better their quality of life. It is a very beautiful country, with the Mediterranean Sea on one side, and Europe on the other three. Monaco is also a host to a number of high-ticket events like the Monaco Grand Prix (F1) and the Monaco Yacht Week during which the country is just laden with yachts and megayachts from around the world.
Also, another interesting fact is that Monaco actually has the highest average life expectancy in the world. Now this might be due to rich people being able to afford better health care, but some credit would definitely go to the country boasting of an exponentially better quality of life than most of the world.
And while that’s it for this article, you read more from me here. And do let me know if you want a specific topic covered! Subscribe for free to receive more posts like this every day!