Media reporting of an EU tax directive, effective from July 1, suggests the European tax haven status of Monaco and Andorra could be under threat. Tribune Properties contend that the real incentive for people moving to Monaco and Andorra remains intact – no income and inheritance taxes.
(PRWEB) July 27, 2005 — Media reporting of a new E.U. savings tax directive has left many people wondering whether European tax havens could soon become obsolete.
The July directive requires banks throughout Europe, including low and no tax areas such as Gibraltar, Monaco, Malta and Andorra, to disclose bank account owner information to their home country’s tax authority. But Roger Munns, Managing Director of tax haven property specialists Tribune Properties, says that some of the reporting has been less than accurate.
‘The purpose behind this directive is primarily aimed at those who hold illicit funds, such as drug dealers, who will need to look outside of the European banking system to place large cash deposits,” he said. “The main attraction of Monaco and Andorra is the zero per cent income and inheritance taxes, and these remains intact and there are no plans whatsoever to change this.”
Monaco and Andorra have long been favored destinations for the well-to-do, but with new technology allowing businessmen and women to run their offices from anywhere in the world, operating from low tax bases has seen added interest for Europe’s primary tax havens, doubling property prices in the last ten years.
Both Monaco and Andorra are outside the EU, and their signing of the directive voluntarily is often overlooked in the media’s analysis of any effects on the two small countries long term popularity.
Property prices have risen steadily over the last decade, often topping 10 percent a year, but this year has seen a slow down of that increase.
Property Price Uncertainty:
Both Monaco and Andorra’s property prices have seen a leveling off this year, according to Tribune Properties, but say this can be explained by factors other than the new EU directive.
Tribune say that in Monaco the passing of Prince Rainier earlier this year cast a shadow over the Principality, while in Andorra the local market has slowed as Andorrans struggle to keep up with the price of property, fueled by buyers from around the world seeking residency.
Two other factors have contributed to the slow down in the first half of the year which could be reversed in the second half – the absence of UK buyers awaiting the outcome of their election in May which saw the Labor Government returned for a historic third term with Tony Blair as Prime Minister and possible tax rises in the pipeline, and buyers holding U.S. dollars who were hit by the rise in value of the Euro – which has now peaked following the E.U. Constitution ‘No’ votes in France and The Netherlands in June.
Both Andorra and Monaco require new residents to live there for six months a year to maintain their residency (but Andorra doesn’t police this once residency is granted). Andorra property prices start from just over 200,000 Euros for a one bedroom apartment, while Monaco is more expensive with one bedroom apartments from around 600,000 Euros.
Tribune Properties offer details of property and real estate for sale in both Andorra and Monaco.
To request the current availability for property for sale in Andorra visit www.propertyandorra.com, for real estate and property for sale in Monte Carlo and Monaco www.monacoproperty.net
Details of Tax Haven Status property for sale in Malta are also available at www.maltaproperty.info
Photo credit: Queralt jqmj via Visual hunt / CC BY-SA
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