Monaco
The principality of Monaco is an "independent" nation state situated on the French Riviera near Italy. It is approximately 2 square kilometers in size and after the Holy See is the smallest country in the world.
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Monaco is hilly, rugged and rocky with its highest point standing at 140 meters above sea level. The climate is mild with the Principality enjoying more than 300 days of sunshine a year; the average temperature is 8.2°C in winter and 25.5°C in summer.
Monaco Population, Language and Culture
The Emperor Henry VI gave Monaco to the Genoese in 1191, and occupied it until the Grimaldi family seized it in 1297. France recognised its independence in 1489 and after a period of Spanish dominance the Treaty of Peronne gave Monaco autonomy under French protection in 1641. With revolutionary, Napoleonic and Sardinian interludes this has remained the situation ever since. |
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The population of Monaco is approximately 33,000 people (July 2009). About 16% of the population are Monegasques with the remainder being a cosmopolitan mixture of expatriate French, Italians, British and other European nationalities as well as Americans, Canadians, Australians, South Africans and a spattering of individuals from Middle Eastern countries. All in all 142 different nationalities reside in the Principality. The indigenous Monegasques are largely Roman Catholic and culturally speaking consider themselves part of the French hinterland. The language of Monaco is French.
Monaco Government
In 1911 Monaco adopted its first constitution, which was amended in 1962. In 1963 Prince Rainier (Grimaldi) signed a major treaty with France which incorporated the provisions and terms of a number of previous treaties and which guaranteed Monaco "independence" subject to French control and subject to assimilation with France in a number of legal & economic areas, including a monetary and customs union. In 1993 Monaco became a fully fledged member of the United Nations. Defense and security matters are handled by France. |
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The Principality has a constitutional, hereditary monarchy in which the sovereign wields overall executive power. Prince Albert II, who succeeded his father Prince Rainier in 2005, represents Monaco in its relations with foreign powers and he alone can sign and ratify treaties.
The 24-seat National Council, whose sole function is to accept or reject legislation proposed by the sovereign and to vote on budget proposals, is elected by universal suffrage, with a 5-year residence qualification. Elections are held every 5 years. 16 members are elected by a list majority system, and 8 by proportional representation. The National Council meets twice a year. The sovereign makes all judicial and diplomatic appointments as well as selecting an executive Council of Government which consists of a Minister of State and a Minister of the Interior. and 3 Monegasque councillors responsible for finance, social services and building.
Monaco is not a member of the European Union but because of the large number of French laws which apply there and because of its full customs and monetary union with France a number of European directives which apply in France indirectly apply in Monaco.
Monaco is a civil law jurisdiction with its legal system based on the French Napoleonic code. A number of French laws in areas as diverse as insurance, postal services, telecommunications, banking confidentiality, tax payable by French nationals, and permanent establishment requirements apply in the Principality.
Monaco Economy and Currency
The Euro is the official currency of the Principality, which operates a monetary union with France.
The economic base of the Principality includes casinos, financial services, capital-intensive, environmentally friendly light industries and tourism.
In recent years financial services have shown the most spectacular growth. Nonetheless the Government actively discourages the perception of Monaco as a tax haven with the result that Monaco could be said to have only limited offshore center characteristics.
In 2004, Monaco was forced to join the EU's Savings Tax Directive regime, and agreed to impose a withholding tax on the interest income of EU residents at the same rate as Austria, Belgium and Luxembourg (initially 15%, rising to 20% from July 1, 2008)) and to hand over 75% of such revenues to the Member State of the EU resident concerned. Monaco also agreed to exchange information on request in criminal or civil cases of tax fraud or similar misbehaviour.
Monaco Entry and Residence
Monaco and France share rights of entry, domicile laws and procedures. The residents of both territories can circulate freely in each country. A person who has a right of entry into France has a right of entry into Monaco (including, obviously, all EU citizens).
Any person wishing to reside in Monaco for more than 3 months must apply for a residence permit. The rules for the grant of a residence permit were agreed with France in 1998 and distinguish between European Union nationals and others. The procedure is for the applicant to present himself at the local police station for interview with documents in hand proving identity and with a letter from a bank verifying sufficient assets or income to support himself and any dependants during the duration of his stay. A residence permit will not be granted where it is shown that the applicant has a conviction for a serious criminal offence.
A residence permit is usually issued within 45 days from the application and initially is valid for 1 year and must be renewed annually for the next 2 years. Thereafter the resident permit is granted for 3 year periods and after having had a residence permit for 9 years an applicant is entitled to one which is valid for a period of 10 years. A 10 year residence permit entitles the applicant to apply for citizenship. Alternatively any person whose father is a national of Monaco can acquire Monegasque nationality as of right. There are no restrictions on foreigners or locals purchasing real estate in Monaco.