A quick visit to Monaco to see how the 1% live

Monaco to me has always been a curiosity, more than a place I wanted to visit or spend any time on. Since it’s a quick half-hour train ride from Nice, I thought this was the best opportunity to kill off that curiosity and have a sneak peek into the principality that fascinates so many – whether we’re talking about juicy royal stories from the Grimaldis or the fact that whilst this is the second smallest country in the world, it is also the one with the most uber-rich inhabitants per capita.

There was very little I knew about Monaco. I remember the first time I heard about the principality, in a Geography class when I was perhaps in 6th grade, I’m not too sure. For some reason, the list of independent micro estates in Europe stayed with me – the Vatican City, Liechtenstein, Andorra, San Marino, Malta and, of course, Monaco. And then I knew it was a place for the wealthy, known for the Grand Prix, Grace Kelly, American actress turned Princess of Monaco and, for some reason, whilst I have never been a huge fan of 007 movies, I remember watching Casino Royale (2006), which basically takes place in the famous casino of Monte Carlo.

Yet, visiting Monaco, allowed me to learn so much more. It was enlightening and at the same time unnerving – enlightening because I realised there is so much more to this tiny country than the casino, and unnerving because I will always have a hard time accepting the terrible inequalities in the world, knowing that for some to be this rich, others have to face extreme poverty.

When I got off the train station, I realised it was (or at least) it felt much warmer than forecast. I also immediately realised that of course, I was no longer in France, and therefore I had no data on my phone and would have to find my way around without the Internet. It is indeed a very small place, so it was not hard. And while there weren’t a lot of people around, I started feeling claustrophobic. The hot weather was not helping, but I think what caused the illusion that I was trapped was the fact that the whole country sits on a cliff. More accurately, at the steps of a mountain, lays the 2.02 km² principality.

On top of that, there was construction all around me, scaffolding everywhere, making it hard for me to navigate a place that was unknown to me. I started walking by the seaside, following directions to the tourist centre, aiming to get a map and some sort of guidance, since I hadn’t prepared for my visit. And then, the claustrophobic feeling increases – I felt trapped in a world that was surreal to me. It reminded me of Geneve in many ways. The streets are so very clean, the expensive and shiny cars, beautiful classical architecture. And then the expensive shops. All of those high-end haute couture brands that I could never afford.

Hard to imagine I was in a place that was in fact some sort of Disneyland for rich people. Not only rich but actual millionaires. It is estimated that over 70% of Monaco’s population is a millionaire, with 199 people holding assets of $30M or more – this means five people in every thousand. It’s something I can’t even visualise.

Monaco hasn’t attracted the uber-rich just because of the almost perfect meteorological conditions, with over 300 days a year of sunshine. Monaco is a tax haven. If there is something the rich absolutely dislike, is paying taxes. And well, Monaco has had the perfect conditions to save fortunes – the country doesn’t impose income tax on its residents. It gets the money it needs from taxes on commercial transactions, luxury tourism, banking, and gambling.

And since we’re talking about gambling… I also learned something quite interesting. Monaco’s citizens aren’t actually allowed to gamble by law, not even being allowed inside casinos (unless they work there). BUT foreign nationals are permitted and guess what… 80% of Monaco’s residents are foreign nationals.

The gambling ban was created by the Prince of Monaco, Charles III in the late 1800s when Monaco was going through a fiscal crisis. He designed a plan to bring over to Monaco members of the European upper class to bring their money in, whilst ensuring Monaco’s residents kept their money inside. this is what makes Monaco what it is today – the plan worked so well, that the principality paid off all of its debts. And, with so much income coming from their gambling industry, they were in a position to abolish taxes.

Nowadays though, most of the country’s funds don’t come from gambling, which represents only 4% of the country’s revenue. The main source of income is actually tourism – of course, not any kind. The luxury type.

Now, let’s talk a little about the Grimaldis. This family originated from Genoa, but in 1297, Francesco Grimaldi disguised himself as a monk and captured Monaco, which was at the time a strategic fortress. He established himself as the lord of Monaco, but it was not easy to maintain it. He and his descendants faced many challenges from rival families and, on top of that, had to deal with the interference of powerful states, such as France, Spain and Italy – as all of them kept trying to annex Monaco. The title of prince was given in 1659 after receiving official recognition from Louis XIV of France.

It was in 1918 that Monaco became a protectorate of France under the Treaty of Versailles. The treaty also establishes that if the Grimaldi family dies out, the principality will become part of France.

One of the best-known recent stories on the Grimaldi family was the marriage of Rainier III (who became Prince of Monaco in 1949) to the famous American actress Grace Kelly. This was considered by many as a fairy tale, but it had a tragic end. Grace Kelly died when she was only 52, after suffering a stroke whilst driving, falling off a steep mountain road. Her daughter Stephanie, at the time 17 years old, was with her but survived with a few injuries. A very sad ending, and clear proof that unfortunately, in real life is rare when there is a “they lived happily ever after”.

Is it worth visiting Monaco? Yes, absolutely. And if you have the money to spare, why not treat yourself. The town is definitely beautiful and if you are in a position of renting out a yacht… well I know I would, if I could 🙂

Love, Nic