August 23, 2016 | 14:45 | Dubai
The latest report by New World Wealth ranks Monaco and Liechtenstein as the top 2 countries ranked by per capita wealth (average wealth per person) at USD 1,556,000 and USD 610,000 respectively. The same is attributable to their tax haven status. The UK is surprisingly high on the list. This is mainly due to the high value of real estate in the country.
The high average wealth of people living in Monaco reflects:
- Its tax haven status – people living in Monaco pay no income tax. This attracts wealthy people to move there and also promotes business formation in the country.
- Offshore center – Monaco operates as an offshore center for the European wealth sector, which brings a large number of wealthy financiers to the country.
- Its location on prime part of the French Riviera.
- High proportion of multi-millionaires – approximately 2,200 of Monaco’s 40,000 residents are worth over US$10 million.
- It is a hotspot for super-yacht owners and one of the most popular yacht docking spots in the Med.
- High real estate prices – Monaco apartments are the most expensive in the world per square meter.
- Snob appeal – Monaco is synonymous with wealth, luxury and fame.