MONACO – A BUSINESS PLAN UNDER THREAT?
greatly intensified. For now, Prince Albert has been able to stave off such calls, but this may not be possible indefinitely, and if Switzerland is anything to go by it would be wise for Monaco to develop a Plan B, just in case its tax-free status proves to be untenable in the long run. To err on the side of caution would be to follow the advice of Onassis fifty years on and make Monaco a sparkling jewel of luxury and opulence on the Mediterranean. It is all these things in spirit and form, yet the real estate stock constructed here over a period of almost forty years does not adequately mirror this, so it would be good to plan for a time when tax-free status no longer warrants world-topping rates of $100.000 per m2. The response would be to beautify the town, enhance and modernise its offering, and create a finer quality of real estate available to the world’s affluent. Beautifying Monaco Fortunately, this process is already under way, with new property developments that represent a significant improvement upon their predecessors. One towering example is the Tour Odéon, whose luxurious sky villas are topped by one of the most extraordinary – and expensive – penthouses in the world. It is this kind of modern extravagance, along with the renovation of iconic hotels and landmarks, that will re-establish Monaco’s intrinsic luxury appeal and assure its future prosperity. The prince has understood this, and with his latest – and final – land reclamation project has eschewed density of construction in favour of quality homes surrounded by top amenities and precious green zones. While Monaco’s future as a tax-free haven remains uncertain, it will most likely continue to be a low-tax destination and is also building upon the appeal that drew people here in the first place – that which made this the foremost centre of affluence, luxury and refinement in the world.
“Since living memory, Monaco has been regarded as the ultimate destination for UHNW individuals. Of course the attraction has a lot to do with its tax-free status, but the tradition of luxury, glamour and privilege is so well-established that it would endure even a change in the tax status. Even so, Monaco is wise to focus more than ever on quality.” Marco Argentieri COFIM Verona, ITALY
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