Why Is Monaco So Rich?

Why Is Monaco So Rich?


Monaco is the second smallest country in the
world after Vatican City. It can be called a city state, meaning the
entire country only really has one main city. You might also call it a microstate. One of the largest and well-known of these
micro states is Singapore, which has a land mass of 714 km2 (276 sq. miles) and a population
of around 5.8 million. But Monaco really is micro. It has a land mass of 2.02 km2 (0.78 sq. miles)
and a population of just 38,900, people. But why is this small place on France’s
Mediterranean coastline so wealthy? That’ what we’ll find out today, in this
episode of the Infographics Show, What Makes Monaco So Rich? According to World Atlas, Monaco has the 181st
largest economy in the world. Its GDP is just over six billion U.S. dollars. That hardly makes it rich, eh? The same website tells us the GDP per capita,
though, is $163,351. Or you can look at it this way. According to a report published by New World
Wealth in 2017, Monaco’s citizens altogether had more private wealth per capita than any
other citizens from any given country. The report said Monaco was way ahead of any
other country, with the average private wealth of its citizens being $1.7 million. Liechtenstein and Luxembourg were second and
third respectively, but way behind Monaco. The USA, with all its billionaires and millionaires,
was eighth in the top ten list, with the average private wealth being just over $158,000. Canada and Hong Kong followed. This is the average, though, not all private
wealth added together. In that case, the USA is top of the world,
with China, Japan, UK and Germany following. Understandably, with so few people, Monaco
would never get on that list. But, where is all the cash coming from, for
the average person to have $1.7 million. Well, we need to explain a bit of history
first. Monaco became a country when Emperor Henry
VI got a grant for the land in 1191. We are going to cut a lot out, but the rock
of Monaco has since been ruled by the house of Grimaldi. Princes of Monaco became vassals (kind of
subordinates) to the Kings of France. Fast forward through hundreds of years of
tangles with France and a treaty was signed in 2002 which said even if there are no Grimaldi
dynasty heirs to rule the country it will still retain its independence. It is, however, protected by Mother France. That’s Monaco in a very small nutshell. It’s important to know, because it’s said
the Grimaldi family at times didn’t quite have the cash to maintain their lavish lifestyles. In 1863 Princess Caroline, a very clever woman
with an impressive business mind, decided to open a casino in Monaco to save the Grimaldi
family from going bankrupt- creating the famous “Monte Carlo Casino”. But this was all part of luring the rich and
famous and making some dough from tourism. It obviously worked, as the rich and famous
flock to Monaco these days. To understand why Monaco is so rich we must
look at something that happened in 1869: the removal of the income tax. This, according to CNN, has attracted rich
folks from over 100 countries. CNN said one in three people that live in
Monaco are millionaires. A lot of famous people are criticized for
living there and not paying their dues to their own country. These include a few Formula One drivers who
have amassed millions. Ace driver Lewis Hamilton is one of them,
but he also has properties in New York and Colorado. Apparently, though, his main home is his 13
million-dollar apartment in Monte Carlo. Yep, income tax can be such a pain. Many people have very obscure ways of avoiding
taxes, as we saw in the Panama Papers, but tax avoidance by moving to Monaco isn’t
that difficult. There are many places in the world you can
move to avoid high taxes, and these people are often to referred to as “tax-exiles.” The Guardian even writes that some rich British
people would live in Monaco but commute to London and then return to their fancy house
in Monaco after. Effectively, this allowed them to work in
the UK but not pay income taxes as they could say they lived in Monaco. Investopedia explained more about this. “To be considered a resident, a person must
live in the principality for six months and one day out of the year,” said the website. “Considering the strategic location of Monaco,
which is easily accessible by airplane, boat or train, it is very common for residents
of the principality to work and even live in other countries in Europe.” The British press tells us thousands of the
British elite avoid taxes this way, which includes human rights activist Bono from U2. This has prompted other activists to turn
up at U2 concerts holding banners, saying “U pay tax 2?” But many pop stars became tax exiles in various
countries, including members of The Beatles, the Rolling Stones, Cat Stevens and David
Bowie. Some people defend them, saying they get taxed
so much it just makes good business sense. If you want to join the wealthy elite and
live in Monaco, you’ll have to apply for legal residence, have no criminal record,
and as one lawyer explained on a forum, “If you get into trouble in Monaco, you can and
will be summarily kicked out without any legal recourse.” One website said there are three ways to get
this residency. Get offered a job there, start a business
there and have the cash to do it, or just show that you are super-wealthy. So, why is it rich? Not only because rich people live there to
save money but because it also attracts the wealthiest people in the world as visitors. They spend a lot of money there. It’s said you’ll pay at least $10,000
a sq. foot for an apartment. We wanted to check that out, so we went online
apartment hunting in Monte Carlo. Don’t even think you can get anything other
than something that resembles a broom cupboard for under $1 million. We found a decent looking place, 2 rooms and
63 sq.m, and it was $4.4 million. The ad said it even had air conditioning! We can assure you, the place was nothing special. Now you can understand why Monaco is so wealthy. The money has just followed the money. Have you been to Monaco? Would you go there if you were rich? Let us know in the comments. Also, be sure to check out our other video
called Illegal Things That YOU Do Every Day! Thanks for watching, and, as always, don’t
forget to like, share, and subscribe. See you next time!

100 Comments

  1. The Infographics Show says:

    You've got 4 words to describe your perfect day in Monaco with no limits… What do you do?

  2. Pizza goes splat says:

    Lol. Monaco is not classed as a country.

  3. DublinGreen says:

    Because Money follows money

  4. Mama Mava says:

    U2 are Irish and as an Irish even though I hate U2 I'm somewhat offended.. dislike from me sorry

  5. Jatin Madani says:

    I am rich if you want a proof search London mart on google

  6. Angelo Pacia says:

    They were sponsored by : Honey

  7. CannonRangerYt says:

    Less people more money sums it all up

  8. tim mobile says:

    Why did you say lichtenstine so vierd?

  9. Supreme Emperor says:

    4:55 interesting animation here. Police brutality ????

  10. miguel angel de la fuente says:

    Porfavor subtítulos en varios idiomas. Gracias de todos modos.

  11. Fares says:

    Actually Qatar is the richest country in the world

  12. Ewan Smith says:

    It's basically been created as a tax haven, initially for France's elites and then the rich of the world.
    I guess like an onshore, French version of the Cayman islands.

  13. Slot Pooma says:

    I thought it’s part of France ??.

  14. Goofy Fruit says:

    lewis hamilton i hate that guy i was just toe to toe with him in F1 2019

  15. renzokukenleonhart says:

    Lol. Don't want to pay tax but willing to over pay for things.

  16. Mount Zion says:

    Africa simple

  17. tasha says:

    bono is english and lewis hamilton is haas driver????

  18. JCmtw Biz says:

    What about Putin with Russia. I guess we will just never k huh?

  19. Jenson Ash says:

    The actual reason why Monoco is so rich

    MONEY has Followed Money

  20. Chris Peters says:

    That explains san fran realestate and homless problem the solution is the priblem

  21. Mohamad Farrab says:

    Lebanon? Is the smallest country

  22. Johan Liebert says:

    Huh Recommendation?

  23. Ares Pertriousvis says:

    so basically, it's just reputation that it got rich.

  24. Aydens Random world 2 says:

    Im i the only person who didnt know monaco existed until now.

  25. RockStrongoG says:

    Been there, it is really clean, pretty and fancy. It is nice to visit for one day but to live there it would be too fake I guess.

  26. climkilla says:

    U2 are not British

  27. Nadir Poiu says:

    I v been there and it s another world

  28. Johnny Steytler says:

    The whole of Singapore subscribed to the info graphic show

  29. Real Footwear Reviews says:

    I’ve been to Monaco. Every other car on the road is a super car. Ferrari. Lambo. It’s crazy. And the “other” ordinary cars. Porsche. Ranges. BMW. Mercs.

  30. Christian Niessen says:

    Terrible selfish people

  31. AZDuffman says:

    I thought they got rich from all those royalties from Dodge and Chevy?

  32. DeeJay VEVO says:

    Each citizen of Monaco was given a small loan of 1.7 million dollars

  33. Razib Baral JOY says:

    They should change the name to "Moneyco"

  34. World Travel says:

    I had been to Monaco once and saw full of fancy cars and super rich people there.
    Also seen gun shots near a rally by food ball fans.

  35. Chris K says:

    I think the Monegasque citizens get housing subsidized.
    And Monaco is a gorgeous place. I walked around most of it.

  36. umangdbz says:

    Why are these v videos excruciatingly long??

  37. Gamerism 20 says:

    Was waiting for the part where they mention singapore

  38. Kevin mydoria says:

    I live in Monaco

  39. Niall Byrne says:

    Bono is Irish.

  40. sole says:

    Why so rich? 1. Tiny 2. Casino 3 Tax haven

  41. Neil Zutshi says:

    Using CNN as a source? lol.

  42. EnigmaG says:

    UK after brexit should make itself a tax heaven

  43. Michael Keating says:

    Fun fact Bono and U2 are an Irish band from the island of Ireland. Not British.

  44. Harry Smart says:

    You say “Monaco” as if you’re sounding Monica from friends

  45. Michael S says:

    Doesn’t the Prince own 100% of the casino and tourism business?

  46. 守護警察 says:

    $450 for a beer in Monaco…millionaires wont make it.

  47. aRVees Blog says:

    Amazing how a country this small is so rich. Thanks for the video, very informative ?

  48. 春のHitomi says:

    Everything is super expensive in Monaco. Many people live in France but work in Monaco for that very reason.

  49. Violet Blue says:

    The country where poor can't enter… well so do terrorist

  50. redhot663 says:

    What’s the point of moving there to avoid income tax and save your money when you will have to spend a billion for a mediocre house

  51. Keira Alessandra says:

    That’s All?

  52. Saksham Agarwal says:

    Monaco's population is even lesser than number of terrorists in Pakistan. ?

  53. Titus Tatius says:

    It should build an empire Monacan Empire

    Imagine if all the rich and famous moved to Monaco then the rest of the World invaded it

  54. Paul Fitz says:

    Bono is Irish not British we didn't fight for 800 years just for our people to labled British.

  55. Mike Hunt says:

    Bono isnt british

  56. timespaice says:

    High tax in France so they hide in Monaco simple as that.

  57. MrAdy0207 says:

    There is no average citizen in Monaco, only Russian ologarchs.

  58. A D says:

    So…. Is monaco a fiscal paradise?

  59. Darandu Sherpa says:

    Because population is low.

  60. Travel Here says:

    I hope to visit Monaco one day.
    Looks like a really cool place to hang around, even if you haven't a lot of money you can just watch all the wealthy things around you.

  61. Jerome Geriente says:

    No income tax but if I'm going to pay millions of dollars just to stay there, I'd rather pay my taxes back home.

  62. 1hard2findbro says:

    Paying high taxes is like letting random people smash your wife.

  63. MyHandsAreRegistered Bruh says:

    Haven't been for 2 reasons:

    1. I am broke

    2. I have a soul

  64. Noah Fontaine says:

    I live in Monaco

  65. Dexter Lina says:

    I was there in January 2019. Incredible beauty. Love Monaco ?? ♥️

  66. Tristan Walsh says:

    U2 is NOT British

  67. Akira A McLaren says:

    4:20 Monaco does not have skyscrapers like the image.

  68. LC_AlexisGaming says:

    It’s legal to not wear a seat belt in Monaco

  69. willow815 says:

    Since i have a dubstep song called "im rich" i think my hole song will explain in 3 minutes

  70. Joshua Jacob says:

    Heard of Qatar?? Search it up

  71. Rumblefish says:

    No mass immigration to Monaco therefore no high numbers of benefit scroungers .

  72. Jim Boland says:

    I would rather own a home in either St. Thomas or the Bahamas. I love the sunshine and the sense of community.

  73. Pat W says:

    So small but so rich like Dubai

  74. reidreve says:

    why is this in my recommend I live like 10min away from monaco

  75. Trivia Night says:

    I would love to visit there some day.

  76. Ethan Dickler says:

    I went to Monaco this summer. Filled with expensive cars and located on a cool terrain. But, not worth the visit unless you’re near-by visiting somewhere else.

  77. Muffin Playz! says:

    When I was in Monaco, it was VERY clean and a very beautiful place but I heard that if u live there and don't own a yacht then ur poor

  78. You PTAs cunt Retard says:

    Is this not illegal??

  79. Vidur Ravi says:

    So imposing no taxes..made it rich ?

  80. Pradhan Kariappa says:

    Monaco sounds like a place where rich folks go willingly to get scammed

  81. Manosmita Mishra says:

    There is no airports??

  82. Sylvain Duret says:

    That 2002 treaty is very… interesting !

  83. TM Driz says:

    BONO IS NOT FROM THE UK

  84. a_rcm says:

    There is Bahrain its so small

  85. paco ramon says:

    Tax paradise.

  86. Miro funof says:

    I used to live in monaco for 6 years, it’s a great city

  87. David Ramirez says:

    now they won tons of enemies countries Lolz????

  88. David Ramirez says:

    if there was a queen Caroline 1863 I am trying to found her on Google but is like she doesn't even exist

  89. Gabriel Carneiro says:

    Hi, What software is this video produced on?

  90. Abhishek Shukla says:

    please please , at last as a summary please please so a bullet point display to conclude your explanation , It would be easier to remember .please

  91. Existing in music says:

    Je suis TRÈS riche.

  92. Reverted Rice says:

    I live in Singapore 😀

  93. V Gaming says:

    Tax the rich and free medicare for all. Revolution!!!

  94. VictoriasFolly says:

    Monaco… meh… The most boring place to live on the globe. Unless, of course, you live in Geneva. ???

  95. Sports4k Live says:

    im going to Monaco to try to find a rich bride, wish me luck guys

  96. 4our 9ine says:

    I know this may sound like typical poor kid villainy but if I had the power to I would probably nuke Monaco because everyone who lives in Monaco thinks they're better than everyone

  97. Rice made Jackson hot says:

    Isn't Lili from Tekken is from Monaco? No wonder they are so wealthy

  98. vineet nagavi says:

    Everyone in monace are millionaires?

  99. vineet nagavi says:

    The video though was very funny …..For a mid class?????

  100. Michelle Ford says:

    That's why Farhad Azima sold everything in the US skip town after Panama paper drop

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