If you are looking to start a luxury business, there are few places in the world better suited than Monaco. Nearly 15 years ago, I started my boutique marketing agency in the Principality, and I have been enjoying all the advantages that being based in a financially secure and forward-thinking citystate brings ever since. From the countless business opportunities in Monaco to its world-leading investment in digital, here’s why I would recommend starting your luxury business in the Principality.
Why Your Luxury Company Should Be Based In Monaco Financial security
If you are setting up a luxury company, you want reassurance that you are doing so in a healthy economy. The Principality can be relied upon for this.
Monaco’s economy has grown dynamically over the last few years, with its GDP growing by 6.1% in 2018 alone, and the country is known to weather recessions better than most. Unemployment is also virtually non-existent in the Principality.
Monaco has also no corporation tax for businesses who make 75% or more of their turnover in the Principality. This allows new companies to focus on building up their revenue, without having to factor in taxation.
The right clientele
With over 32% of the Monaco population - or 12,261 people - found to be millionaires or multimillionaires in 2019, and Knight Frank estimating that this number will grow to 16,100 by 2026, luxury businesses here will find that they have their target audience right in front of them.
Being located in the country that has the highest number of millionaires per capita of anywhere in the world means that there are plenty of luxury business opportunities in Monaco, across diverse sectors such as international trade, banking and finance, other services, tourism, retail, real estate and construction, fashion, jewellery, yachting and aviation, among others.
Alongside its wealthy residents, Monaco also enjoys thriving tourism, with many travelling to the Principality specifically with the aim of procuring high-end products and services.
Funding for digital
As part of Monaco’s digitalisation drive announced earlier this year, a “Blue Fund” has been created to help companies in the Principality undergo a digital business transformation. This €20 million fund will go towards training, equipping and supporting companies based in Monaco with their digital transition. It will also aid the creation of e-commerce, payment platforms and more.
This is just one area of Monaco’s extensive digitalisation, which will also see a “Sovereign cloud” set up to create a high standard Monegasque digital ecosystem, and a Security Token Offering platform created in the hope of attracting new digital companies to Monaco. So, if your business will have a digital side - as all businesses should in 2020 - then it will be well supported in the Principality. There aren’t many countries in the world who will go to these lengths to help its corporations go digital.
Luxury companies based in Monaco are perfectly situated to find the right clientele and embrace digitalisation, with the support of a strong economy backing their success. To discuss strategies for taking your luxury business digital, please get in touch.