The number of British residents in Monaco has reached a record 3,100, almost double the figure recorded a decade ago, as growing concerns over taxation and financial uncertainty encourage wealthy UK nationals to relocate to the Principality.
According to a report by Robert Hardman in The Mail on Sunday, Britons now account for approximately eight percent of Monaco’s 39,000 residents and represent the fastest-growing nationality, excluding French nationals, among the 144 nationalities represented in the Principality.
The increase comes amid significant changes to Britain’s tax regime, including the abolition of non-domiciled tax status and reforms affecting inheritance tax. These measures have prompted concerns among wealthy entrepreneurs about protecting family businesses, preserving accumulated wealth and passing assets to future generations.
Good Morning Monaco ☀️
The day’s Monaco news in your inbox every morning. Free, unsubscribe anytime.
🔒 We won’t spam you or sell your data. Changed your mind? Unsubscribe with one click at the bottom of any email.
This highlights a broader movement of wealthy individuals leaving Britain, with research suggesting that approximately £120 billion in wealth has departed the country over the past two years. Whilst such estimates are difficult to verify precisely, the potential loss of future tax revenues from departing entrepreneurs has become an increasingly prominent issue in the UK.
The British population is also becoming younger, with the average new arrival aged 44. Increasingly, Monaco is attracting entrepreneurs and families seeking not simply favourable taxation, but a stable environment in which to establish their long-term futures.
Meanwhile, as previously reported by NEWS.MC, Italy’s proposed 26 percent exit tax on unrealised capital gains for departing residents with assets worth at least €800,000 has introduced further uncertainty. The proposal, part of Italy’s draft 2027 budget, follows increases to its preferential flat-tax scheme and remains subject to parliamentary approval.
Italy originally introduced its flat-tax regime in 2017, attracting wealthy international residents with a fixed annual charge of €100,000 on qualifying foreign income. That amount has since increased to €300,000 for newer arrivals, illustrating how quickly the fiscal landscape can change.
Monaco offers a contrasting approach, with no general personal income tax, capital gains tax or comparable exit tax for most residents, alongside political continuity, personal security and an established international community.
Sources: The Mail on Sunday
