Monaco has the world's highest
nominal GDP per capita at US$185,742,
PPP-adjusted GDP per capita at $132,571 and
GNI per capita at $183,150. It has an
unemployment rate of 2%, with over 48,000 workers who commute from France and Italy each day. According to the
CIA World Factbook, Monaco has the world's
lowest poverty rate For the fourth year in a row, Monaco in 2012 had the world's most expensive real estate market, at $58,300 per square metre. Although the average price went down in 2020, to an average price of $53,378 per square metre, Monaco remains one of the most expensive places in the world to buy property. By 2024, Monaco allows Visa-free travel from 86 countries around the world. The world's most expensive apartment is located in Monaco, a penthouse at the
Odeon Tower valued at $335 million according to
Forbes in 2016. The state retains monopolies in numerous sectors, including tobacco and the postal service. The telephone network (
Monaco Telecom) used to be fully owned by the state. Its monopoly now comprises only 45%, while the remaining 55% is owned by
Cable & Wireless Communications (49%) and
Compagnie Monégasque de Banque (6%). Living standards are high, roughly comparable to those in prosperous French metropolitan areas. and its harbour Monaco is not a member of the
European Union, but is very closely linked via a customs union with France. As such, its currency is the same as that of France, the
euro. Before 2002, Monaco minted its own coinage, the
Monégasque franc. Monaco has acquired the right to mint
euro coins with
Monegasque designs on its national side. Monaco has become a major banking centre, holding over €100 billion worth of funds. Banks in Monaco specialise in providing private banking, asset and wealth management services. The principality has successfully sought to diversify its economic base into services and small, high-value-added, non-polluting industries, such as cosmetics.
Tourism One of Monaco's main sources of income is tourism. Each year many foreigners are attracted to its casinos and pleasant climate. In 2022 there were about 300,000 international tourist arrivals. Monaco is the only place in Europe where credit card points are not redeemable. Hotel points are not able to be accumulated nor are transactions recorded, allowing for an increase in privacy that is sought by many of the locals.
Gambling industry The plan for casino gambling was drafted during the reign of
Florestan I in 1846. Under Louis-Philippe's
petite-bourgeois regime a dignitary such as the
Prince of Monaco was not allowed to operate a gambling house. They then constructed their casino in the newly dubbed "Monte Carlo" and cleared out the area's less-than-savoury elements to make the neighbourhood surrounding the establishment more conducive to tourism. The Blancs opened
Le Grand Casino de Monte Carlo in 1858 and the casino benefited from the tourist traffic the newly built French railway system created. Due to the combination of the casino and the railroads, Monaco finally recovered from the previous half-century of economic slump and the principality's success attracted other businesses. In the years following the casino's opening, Monaco founded its
Oceanographic Museum and the
Monte Carlo Opera House, 46 hotels were built and the number of jewellers operating in Monaco increased by nearly five-fold. In an apparent effort not to overtax citizens, it was decreed that the Monégasque citizens were prohibited from entering the casino unless they were employees. By 1869, the casino was making such a vast sum of money that the principality could afford to end tax collection from the Monegasques—a masterstroke that was to attract affluent residents from all over Europe in a policy that still exists today. Today,
Société des bains de mer de Monaco, which owns Le Grand Casino, still operates in the original building that the Blancs constructed and has since been joined by several other casinos, including the Le Casino Café de Paris, the Monte Carlo Sporting Club & Casino and the Sun Casino. The most recent addition in Monte Carlo is the
Monte Carlo Bay Casino, which sits on 4 hectares of the Mediterranean Sea; among other things, it offers 145 slot machines, all equipped with "
ticket-in, ticket-out" (TITO). It is the first Mediterranean casino to use this technology.
Low taxes Monaco has a 20% VAT plus high social-insurance taxes, payable by both employers and employees. The employers' contributions are between 28% and 40% (averaging 35%) of gross salary, including benefits, and employees pay a further 10% to 14% (averaging 13%). Monaco has never levied
income tax on
individuals, The absence of a personal income tax has attracted many wealthy "tax refugee" residents from European countries, who derive the majority of their income from activity outside Monaco.
Celebrities, such as
Formula One drivers, attract most of the attention but the vast majority are lesser-known business people. Per a bilateral treaty with France, French citizens who reside in Monaco must still pay income and wealth taxes to France. The principality also actively discourages the registration of foreign corporations, charging a 33 per cent
corporation tax on profits unless they can show that at least three-quarters of turnover is generated within Monaco. Unlike classic tax havens, Monaco does not offer offshore financial services. Monaco did not appear in the list of these territories until 2004, when the OECD became indignant regarding the Monegasque situation and denounced it in a report, along with
Andorra,
Liechtenstein,
Liberia, and the
Marshall Islands. The report underlined Monaco's lack of co-operation regarding financial information disclosure and availability. Later, Monaco overcame the OECD's objections and was removed from the "grey list" of uncooperative jurisdictions. In 2009, Monaco went a step further and secured a place on the "white list" after signing twelve information exchange treaties with other jurisdictions. Also in 2000, a report by French politicians
Arnaud Montebourg and
Vincent Peillon stated that Monaco had relaxed policies with respect to money laundering including within its casino and that the Government of Monaco had been placing political pressure on the judiciary so that alleged crimes were not being properly investigated. In its Progress Report of 2005, the
International Monetary Fund (IMF) identified Monaco, along with 36 other territories, as a
tax haven, but in its
FATF report of the same year it took a positive view of Monaco's measures against money-laundering. The
Council of Europe also decided to issue reports naming tax havens. Twenty-two territories, including Monaco, were thus evaluated between 1998 and 2000 on a first round. Monaco was the only territory that refused to perform the second round, between 2001 and 2003, whereas the 21 other territories had planned to implement the third and final round, planned between 2005 and 2007. In June 2024, the FATF added Monaco to its "grey list", which includes countries needing "increased monitoring" due to statewide issues of money laundering and terrorist financing. In preparation for this date, the minting of the new euro coins started as early as 2001. Like Belgium, Finland, France, the Netherlands, and Spain, Monaco decided to put the minting date on its coins. This is why the first euro coins from Monaco have the year 2001 on them, instead of 2002, like the other countries of the
Eurozone that decided to put the year of first circulation (2002) on their coins. Three different designs were selected for the Monégasque coins. The design was changed in 2006 after Prince Rainier's death to feature the effigy of Prince Albert. The
Monaco-Monte Carlo station on the
Marseille–Ventimiglia railway is served by the
SNCF, the French national rail system. The train station is the only one in Monaco, and connects the City-State by rail to French cities along the Riveria such as
Nice (and its
Nice Côte d'Azur Airport a little under an hour away from Monaco),
Cannes, and
Marseille (and to a transit point just east of the
France-Italy border at
Ventimiglia) and high-speed
TGV trains connect to more distant locations such as
Paris: a gateway to the rest of Europe. The current station is built partly underground and was opened in 1999. The
Monaco Heliport provides helicopter service to the closest airport, Côte d'Azur Airport in Nice, France. The heliport its located in the southwestern edge of Monaco. The Monaco bus company,
Compagnie des Autobus de Monaco (CAM), covers all the tourist attractions, museums,
exotic garden, business centres, the Casino, and Stade Louis II. There are about of roads in Monaco, many sections of which are also used for automotive and other races. The nearest 4-lane major
motorway, the
European route E80, passes well clear to the north of the border, and curvy mountain roads connect its ramps to Monaco. ==Demographics==