In brief
In June 2024, Guillaume Rose, the CEO of the Monaco Economic Board (MEB), led a delegation of 44 companies to London. The mission aimed to attract new businesses and residents to Monaco, particularly in the wake of the UK’s tax reform under the new Labour government, which may trigger an exodus of wealthy individuals due to the end of the “non-dom” status.
Rose emphasized that the MEB’s focus is on business opportunities rather than individual relocations, targeting British companies in banking, finance, and legal consulting as potential partners or clients for Monaco’s businesses. Despite Monaco’s placement on the Financial Action Task Force (FATF) grey list, Rose noted strong interest from British companies, who view Monaco as a stable and attractive destination.
The delegation’s visit included meetings with major players like the Royal Automobile Club, Savills, and the London Chamber of Commerce and Industry, and showcased Monaco’s commitment to international cooperation. Rose highlighted Monaco’s appeal, citing its international community, top-tier education, and favorable tax environment as key factors for attracting new businesses and residents. Despite competition from other European countries, Monaco’s unique quality of life remains a significant draw for British businesses and individuals considering relocation.
Monaco Hebdo, July 23, 2024. [Excerpt translated via Google]
Guillaume Rose: Monaco sees significant level of goodwill
Guillaume Rose : « Monaco exerce un capital sympathie très fort »
Read the Monaco Hebdo Interview in French
Guillaume Rose, Executive Director General of the Monaco Economic Board (MEB), accompanied a delegation of 44 companies to London in June 2024 to attract new companies and new residents to the principality. And this, in a context of a possible exodus of large fortunes, following the major tax reform undertaken by the new British Labour government. Interview.
Will the end of the “non-dom” status be accompanied by an exodus of tax residents from the United Kingdom?
On this side, the MEB is more focused on companies. Of course, it is the people who drive them, but our field of action remains focused on companies. The removal of this status, for people who until now benefited from certain advantages in the United Kingdom, could result in an exodus, but their profile is more managed by the Monaco Private Label, the government’s attractiveness unit, which works with Frédéric Genta, interministerial delegate for attractiveness and digital transition.
This British tax reform could lead companies to leave the United Kingdom?
We are looking for any business, and not just any individual, likely to settle in the principality in a win-win “deal”, and looking for opportunities for our Monegasque companies. We target English companies likely to serve as partners, suppliers or customers to our companies. There are many companies in the banking and financial sector, as well as legal advice. We are also there to explain to them the legal and banking framework necessary for establishing a company in Monaco.
“The English know that, unlike Venezuela, we are a stable country that is committed to keeping its international commitments. We have tested the line, but we are returning to what is our natural vocation: to have a place in the concert of stable and serious nations”
Where did this large delegation sent to London in June 2024 come from?
It was a huge delegation, of 62 people, for 44 companies. We carried out three separate operations, thanks to the unwavering support of Evelyne Genta, Monaco’s ambassador to London. We were very kindly received by our partners at the Hauser & Wirth gallery with English companies, then at the Royal Automobile Club. We also visited the headquarters of Savills, one of the world’s leading real estate companies, with the London Chamber of Commerce and Industry. We also went to the Royal Thames Yacht Club in Knightsbridge to meet with around sixty contacts in finance, including legal advisors, family offices, tax specialists, accountants and bankers.
What was their point of view on Monaco?
What is certain is that Monaco sees a significant level of goodwill. We all had a feeling that we were at risk of being placed on the grey list, and we did not hide it. We explained what would happen after this placement, but English businessmen have always been attracted to Monaco as a destination, despite everything. We have made several visits to London in recent years, and we have rarely seen such great enthusiasm. We cannot therefore consider that there was a marked negative effect during our visit, with regard to this placement on the grey list.
“This grey list from the FATF is considered in London as a mishap, and the prescribers of “ultra high net worth individuals” are in a long-term perspective. A placement on the grey list for a year and a half therefore does not seem harmful to them”
What are the arguments in favour of Monaco, despite this context?
The English know that, unlike Venezuela, we are a stable country that is committed to keeping its international commitments. We have tested the limits., but we are returning to what is our natural vocation: to have a place in the concert of stable and serious nations. This is very much so the understanding of the English, when they speak of Monaco.
How can a placement on the gray list of the Financial Action Task Force (FATF), which fights against money laundering and the financing of terrorism, not make them flee?
This gray list of the FATF is considered in London as a mishap, and the prescribers of “ultra high net worth individuals” have a long-term perspective. A placement on the grey list for a year and a half does not therefore seem harmful to them. And they know that we will react appropriately, and at the right time.
So we will have to wait a year and a half to hope to attract these profiles to the principality?
I think we will have to be a little patient, because the prescriber and the client are in no hurry. Everyone is waiting, so our trip to London was well timed. We put ourselves on the map, while the question of remaining in the United Kingdom is on the table.
Is the competition tough, even just in Europe, against Switzerland, Malta and Ireland?
Of course, there is competition, especially in the heart of the European Union (EU), from countries that are not on the grey list. Switzerland, a lot, but also Belgium, Malta. Portugal also offers a very favorable regime for foreign residents, and already has a lot of English. But our advantage is our total internationalization.
How does this internationalization translate?
Among our main assets, we have the international school, the International School of Monaco, and the British school, the British School of Monaco. Education has become the number one reason for moving to the principality. This was not the case fifteen years ago. Now, schools are a powerful way to attract people with substantial means, who wish to settle, open a business, and enjoy a good quality of life.
Is there also a tax advantage to settling in Monaco?
I would like to remind you that our level of taxation remains unique in the principality. From a business perspective, taxation in Monaco is very similar to that of France. But, from an individual perspective, it is much more attractive for direct taxes and inheritance tax. We can therefore talk about long-term settling in Monaco. Our tax system is an asset, but it is not the first decision.
So what is Monaco’s main asset?
Monaco’s main asset is its international quality of life, because residents live in an international community. And education for children. We increasingly feel that people who make a fortune are between 35 and 55 years old. They have children, and they are concerned about the education they will receive.
Did British residents leave Monaco during Brexit?
There were a few departures, but not an exodus. There was a small panic movement, but people are coming in even greater numbers today. A part of tradition remains unchanged: in London, Monaco and Monte-Carlo are still considered magical and mythical places. People still go there, and sometimes they stay there.
The return of Labour to power, since the general elections of 4 July 2024, worries some British residents?
In my opinion, there is no palpable fear. Rather, we have moved from an uninhibited right, which has been in power for almost 15 years, to a “respectable” left. This is not Jeremy Corbyn’s left, and I did not find the English worried. They were expecting a change of regime and they have remained on a liberal basis. There is no panic among residents about this, on the contrary. The English have learned the lessons of Brexit. Their new parliament is no longer in line with the one that led them there.
What is the next step in attracting new businesses to the principality?
The charm offensive continues with our customers. We put these customers in touch, and then we let them realize their projects. We do not interfere after that. The installation in the principality is more managed by the economic development department. Our priority is to satisfy our members, more than to know their turnover generated after a meeting.
Can you count on major players in British business to attract new players?
Yes, for instance, the prestigious international art gallery Hauser & Wirth, which has been established in Monaco for three years already.. We have committed players at all levels, there is a real British community in Monaco, it is also the fourth most represented nationality in the principality among residents, since it represents 7% of this population, after the Monegasques themselves, the French and the Italians.
