Relocation Advice - Monaco
AP Executive has dedicated consultants concentrating on jobs in Monaco, please contact our consultants for further information or use our job search function to see our current Monaco vacancies.
Monaco
Overview:
Undoubtedly stunning and luxurious, Monaco is a small principality with a population of just over 30,000. It's a country and a "microstate" which is situated in Europe on the northern central coast of the Mediterranean Sea. The principality is just 1.98km squared. In essence, Monaco is a constitutional monarch with Prince Albert II as head of state. Although the country is independent, France is responsible for the country's national defence.
Why choose Monaco:
Not only is Monaco attractive for tax purposes, it is a country with one of the highest GDP per capita in the world. However, if you are a French national, you are required to pay French tax on your income as a result of the amended tax agreement between Monaco and France in 2002. There are, however, three exceptions to this law: if they had been habitually resident in Monaco for 5 years on October 13, 1962 and they hold dual French and Monegasque nationality; they are attached to the Prince's household; or they are the French spouses of foreigners residing in Monaco and the marriage took place before January 1, 1986.
With regards to everyone else, there is neither income nor capital gains tax at all. However, all this may seem quite attractive, to the employee at least, but what isn't commonly spoken about is the social insurance rate. As an employee you are looking to pay, on average, 13% of you salary for social insurance taxes. This may not seem high, and considering there is no other tax to be paid on income one would consider it a great deal. However, the employer has an even higher burden to pay when it comes to social insurance. In Monaco, the total social insurance amount is shared between the employee AND the employer. As stated above, the employee pays around 13% (average) but the employer pays around 35% (on average). This amounts to almost 50% percent of an employee's salary with the tab being picked up mainly by the employer. This is a disincentive to over employ in Monaco.
Relocating to Monaco:
All foreign nationals - that is, non-Monegasques - are required to obtain a work permit (Permit de travail) before they take up any job in Monaco. They also need to get a new permit if they change position or employer.
"It is the responsibility of the employer to help their employee obtain a work permit. Not just anyone can work in Monaco. Recruitment must be agreed by theServicede l'Emploi. When a job vacancy comes available the employer must contact the Servicede l'Emploi, which then has four days to come up with an employee from Monaco or the surrounding area. Under Monegasque law local people with the same qualifications have priority. If a candidate within these criteria can not be found, the employer may then propose its own candidate. To obtain a work permit the employee must submit their contract of employment stamped by the employment service, along with proof of residence and personal identification to the Servicede l'Emploi.If the employee lives in Monaco, a valid Monegasque residence permit is required. If resident in France, a French identity card or valid residence permit that authorises him to work is necessary. The Employee also has to have an annual medical examination at the Office de la Médecine du Travail(Occupational Health Department)."[1]
Job Opportunities in Monaco:
· Asset management
· Wealth management
· Trusts
· Legal positions
· Accounting/credit
· IT
· Private Banking
· Commercial positions
