Switzerland vs Monaco: Why Wealthy Swiss are Moving to the Principality

The relocation of wealthy Swiss citizens to Monaco has multiplied in recent years, despite the well-known tax advantages of the Swiss Confederation. More than 1,200 Swiss already live in Monaco (making them the 4th largest foreign group in the Principality). This phenomenon is intriguing, as Switzerland itself offers an attractive tax framework and a high quality of life. This article, based on the observation of our Monaco real estate agency Petrini Exclusive Real Estate Monaco, notes a change in its clientele—particularly the arrival of Swiss families increasingly assisted in the purchase of their future apartment in the Principality. We propose to analyze why more and more Swiss millionaires are choosing Monaco by examining point by point the differences between the two countries (taxation, quality of life, residency, services, economic opportunities, image) and by exploring the deeper motivations that go beyond mere taxation. A summary comparative table Switzerland vs Monaco is provided at the end of the article.

Comparison of Switzerland and Monaco on Key Criteria

Taxation: Two Opposing Paradigms

When it comes to personal income tax, the difference is striking: Monaco does not impose any income tax, whereas Switzerland has progressive rates (varying by canton, reaching up to ~40% for the highest incomes when combining cantonal and federal taxes). The Principality abolished income tax as early as 1869 and still maintains a 0% rate on residents’ income today. Similarly, there is no wealth tax in Monaco, while Switzerland remains one of the few European countries that taxes net assets: up to ~1% per year for the largest fortunes, depending on the canton. This difference in tax treatment can represent a substantial annual saving for a billionaire.

Inheritance and corporate taxation. Here too, the strategies differ. Monaco does not levy any inheritance tax in the direct line (0%) and only moderately taxes inheritances between non-relatives (up to 16%). In Switzerland, there is no federal inheritance tax, but the cantons may impose one – most exempt spouses and children, while more distant or unrelated heirs can be heavily taxed (over 50% in some extreme cases). For example, in 2015 the canton of Geneva tightened its inheritance laws, prompting billionaire Mohamed Al-Fayed to leave Cologny for Monaco in order to benefit from a more lenient tax regime. On the corporate side, Switzerland has recently harmonized its profit tax to around 15% on average (following cantonal reforms and a global minimum tax initiative). Monaco, on the other hand, applies a 0% rate for local companies generating at least 75% of their turnover in the Principality, and a standard rate of 33.3% (aligned with France) for companies with more than 25% of their revenue coming from abroad. Finally, neither Monaco nor Switzerland tax private capital gains, and Monaco’s VAT (20%) is higher than Switzerland’s (7.7%), reflecting Monaco’s alignment with the French tax system.

Despite the Swiss "lump-sum" tax regimes (taxation negotiated based on expenditure, available to wealthy foreigners domiciled in Switzerland) and cantons with low tax burdens (such as Zug, Schwyz, etc.), Monaco objectively offers an even more favorable framework for preserving capital: retaining the entirety of one’s income and wealth. It is therefore not surprising that the prospect of keeping most of one’s wealth attracts fortunes from around the world to Monaco. Many residents of the Principality take these tax measures into account when deciding to leave their country of origin. Faced with such competition, Switzerland, although attractive, falls short when evaluated solely on tax matters. However, it should be noted that Monaco does not grant these advantages to French citizens (except in special cases) under a 1963 tax agreement—a distinction that does not affect the Swiss.

Quality of Life: Mediterranean Climate vs Alpine Comfort

Switzerland offers a varied environment (lakes, Alps, lush countryside) and a temperate continental climate, with cold, damp winters on the plateau and snow in the mountains. The Principality of Monaco, on the other hand, benefits from an exceptional Mediterranean microclimate, with approximately 300 days of sunshine per year and mild winter temperatures thanks to its location on the Côte d'Azur. This “almost year-round sunshine” is a major draw frequently cited by Monegasque residents. In contrast, Monaco is an ultra-dense city-state (19,000 inhabitants/km²) where untouched nature is nearly absent—although the sea, well-kept gardens, and the proximity of the Niçois and Ligurian hinterlands provide a pleasant setting. Switzerland, by comparison, offers more space and natural landscapes, as well as generally cleaner air, which contributes to the quality of life for many of its inhabitants. In terms of cost of living, both places are expensive, but Monaco reaches record levels: housing is among the most costly in the world, with an average price of around 52,000 € per m², compared to ~15,000 CHF (approximately 15,300 €) per m² in Zurich or Geneva. In other words, a luxury apartment in Monaco will often cost more than three times as much as the same apartment in Geneva, due to very high demand and an extremely limited supply of land. Daily, luxury products and services are available in both countries, but Monaco imports most of its goods, which keeps prices high (including for dining out or everyday groceries).

In terms of security, both Monaco and Switzerland excel, with high political stability and very low crime rates. However, Monaco takes security to a level rarely matched: the city-state is traversed by over 1,000 surveillance cameras across 2 km² and has around 600 police officers (for approximately 40,000 residents). Consequently, crimes are extremely rare, and any breach of the law is quickly detected. Switzerland, renowned for its safety, also has low crime rates, though without the pervasive surveillance found in Monaco. This “maximum security” in the Principality—coupled with the absence of major social unrest—reassures many wealthy families.

Both Monaco and Switzerland provide a very high level of services to their residents. Switzerland boasts world-renowned hospitals and clinics (in Geneva, Zurich, Basel, etc.), with a mandatory private health insurance system that ensures access to healthcare for all, albeit at high premiums. Monaco, on the other hand, has the Princesse-Grace Hospital Center, currently undergoing modernization, which offers a modern and efficient facility, and also allows residents to access nearby French hospitals (e.g., in Nice). Life expectancy in Monaco is, in fact, the highest in the world (around 89 years on average), slightly exceeding Switzerland’s already excellent rate (~84 years). Switzerland also stands out with its international schools (Leysin, Institut Le Rosey, etc.) and prestigious universities (ETH Zurich, EPFL, University of Geneva, etc.), attracting elites from around the globe. Monaco, meanwhile, offers quality educational institutions (international high school, hotel management school, etc.) and a financial training institute, as well as its own university—although expatriate children often pursue higher education abroad (France, the United Kingdom, the United States, etc.). In terms of leisure and culture, a wealthy Swiss seeking luxury shopping, Michelin-starred cuisine, or high-end entertainment will find satisfaction both in Zurich/Geneva (watchmaking, boutiques, upscale restaurants, festivals) and in Monaco. The difference lies in the concentration and prestige of events in the Principality: Formula 1 Grand Prix, Monaco Yacht Show, tennis Masters, charity galas, legendary casinos—a social calendar that is an integral part of the Monegasque lifestyle.

Residency Regime and Administrative Procedures

Becoming a resident in Switzerland vs. Monaco. For a Swiss citizen, living in Switzerland is a natural right—no formalities are required aside from fulfilling fiscal and administrative obligations in the canton of residence. In contrast, relocating to Monaco requires following a strict administrative process. We often assist our clients in this process. Indeed, Petrini Exclusive Real Estate Monaco is among the first trusted contacts to support Swiss citizens in settling in the Principality. We guide our clients in both renting and purchasing properties, while also assisting with all the administrative procedures necessary for a successful relocation. Our reputation for excellence in customer service positions us as an undisputed leader in tailored support for new Monegasque residents. Contact us today to benefit from personalized assistance and to understand in detail the key steps of your relocation to Monaco.
Our multilingual team is at your disposal to answer all your questions and facilitate every stage of your project.

The Principality issues residency cards only to candidates who meet at least one of these criteria: being employed in Monaco, setting up a business there, or simply proving sufficient financial means. In the latter case, which is most common for retirees, it is necessary to open a Monegasque bank account and deposit at least 500,000 €, then purchase or rent a property in the Principality. Once these conditions are met, the applicant must provide a clean criminal record and undergo an interview with Public Security. The residency status is then granted, with the obligation to reside physically in Monaco for at least 6 months per year (some technical measures, such as monitoring electricity or water consumption, help verify this—as ex-Novartis magnate Daniel Vasella learned in 2013 when Switzerland pointed out that he had not truly left his canton despite having a Monegasque address). Note that Monegasque nationality is almost inaccessible to newcomers, except by direct decision of the Prince.

Access to Services and International Connectivity

Transport and Connectivity. Switzerland is a European hub: it has three major international airports (Zurich, Geneva, Basel) offering direct flights to major global cities, facilitating travel for business or leisure. The Swiss railway network is renowned for its density and reliability, connecting internal cities and neighboring countries with ease. Monaco, on the other hand, does not have an airport on its territory but benefits from the immediate proximity of Nice International Airport (a 30-minute drive or a 7-minute helicopter ride). Nice offers numerous direct connections (New York, Dubai, London, Moscow, etc.) and Monaco even has a dedicated terminal for luxury helicopter transfers. The Principality is also connected by train (SNCF line to Nice, Cannes, Marseille) and by highway. For a businessman, reaching Europe’s financial centers from Monaco often requires a connection in Paris or Nice, whereas someone from Zurich might travel non-stop—a slight disadvantage for Monaco in terms of global connectivity. However, Monaco’s location is strategic for those operating around the Mediterranean: it is 1 hour by flight from Milan, 1.5 hours from Geneva, 2 hours from London, and the Italian coast or the Southern Alps are just a stone’s throw away. Moreover, well-off Monegasque residents often have their own private jet or yacht, reducing the importance of conventional commercial connections.

Infrastructure and public services. Switzerland excels in public infrastructure: impeccable roads and trains, efficient postal services, widespread access to ultra-high-speed internet, etc. Monaco, although smaller, has invested in quality infrastructure for its residents: the entire territory is fiber-optically connected (ultra-fast internet), urban transport is well-developed (public elevators, frequent electric buses on certain routes, maritime shuttles), and everything is managed on a small scale, allowing for rapid service response. The near-zero local taxation in Monaco implies no local taxes, but the Monegasque State compensates through revenues from VAT, real estate, and luxury tourism to finance its services. Urban cleanliness, for example, is exemplary in Monaco, rivaling Swiss standards. Regarding healthcare, as mentioned, the quality is high in both cases, and many doctors practicing in the Principality are trained in Switzerland or France. Both countries also emphasize multilingualism: in Switzerland, people alternate between French, German, Italian, and English; in Monaco, the official language is French, but English and Italian are widely spoken, reflecting its cosmopolitan population. In short, a Swiss expatriate will not feel out of place in the Principality in terms of material comfort and services—they might even find that Monaco offers a higher concentration of high-end services (private concierge, chauffeurs, luxury boutiques open on Sundays, etc.) than Switzerland, due to the ultra-wealthy local clientele.

Economic Opportunities and Financial Investments

Switzerland has been a pillar of global wealth management for decades: Zurich and Geneva rank among the largest private banking centers, attracting a wealthy clientele seeking stability, financial expertise, and confidentiality. This Swiss financial tradition has contributed to making Switzerland a sort of “safe deposit box.” Monaco, on the other hand, has developed a niche financial center focused on wealth management for residents and investment in luxury sectors. Numerous private banks (often subsidiaries of Swiss or international banks) and asset management companies are found there. Finance accounts for about 17% of the Monegasque economy. Although its business ecosystem is less diversified than Switzerland’s, Monaco still offers interesting opportunities: no exchange controls, favorable corporate taxation for local businesses, and infrastructure (business centers, secure connections) designed to attract family offices and corporate headquarters (notably in maritime, yachting, or the new green technologies promoted by the Prince). Political stability is a common asset in both countries: Switzerland is a neutral republic that has long been stable, while Monaco is a monarchy with a stable and very low-debt government. In both cases, internal geopolitical risks are considered virtually nil, reassuring those looking to protect their long-term capital. In times of international crisis, the Swiss franc is often seen as a safe haven—but Monaco, using the euro while being outside the EU, also has its advantages (no risk of independent Monegasque sanctions, etc.).

A Swiss entrepreneur or investor will find in Switzerland a favorable environment for launching activities in multiple sectors (finance, high-tech industries, biotech, commodities, etc.), thanks to a larger market (9 million inhabitants, integration into the European market through bilateral agreements) and a highly skilled workforce. Monaco, with its 39,000 inhabitants, cannot offer a significant domestic market, but serves as an international showcase: establishing one’s business in Monaco can provide prestigious visibility, direct access to high-level business circles, and privileged access to certain wealthy investors or clients. The local real estate sector, although limited, has experienced meteoric price increases (thus offering opportunities for capital gains for early buyers). Moreover, Monaco focuses on certain economic niches: environmental technologies, professional events (trade shows, financial conferences), luxury e-commerce… All these sectors are supported by government incentives aimed at diversifying the economy beyond tourism and banking. Finally, regarding business confidentiality, Switzerland has had to ease its banking secrecy under international pressure (automatic exchange of tax information with many countries since 2018), while Monaco, after long being perceived as an opaque haven, has also made concessions on fiscal transparency. Nevertheless, the general perception remains that these two jurisdictions respect the privacy of large fortunes more than neighboring major states. This confidentiality, combined with the solid international image of seriousness (for Switzerland) and luxury (for Monaco), continues to attract holders of great wealth.

Image, Prestige, and Symbolic Status

Beyond the figures and services, the collective image associated with Switzerland and Monaco differs considerably, influencing the decisions of the wealthy. Switzerland evokes discretion, reliability, neutrality, and a refined lifestyle characterized by chalets in Gstaad, luxury watches, but also a certain Calvinist modesty in Geneva. Wealth is often valued as something that “does not make waves”. In contrast, Monaco is synonymous with flamboyant prestige and ostentatious success—it is the quintessential luxury city-state. Establishing one’s residence there is a symbolic status in itself, almost a rite of passage for billionaires seeking recognition within the very exclusive club of the ultra-rich worldwide. Unlike a distant tax haven such as the Cayman Islands, Monaco offers European legal security without social isolation. One lives surrounded by peers: nearly one in three residents is a millionaire, and this concentration creates an environment where luxury is the norm, not the exception. For some Swiss, operating in an environment where owning a supercar or a yacht is unremarkable may be more comfortable than in Switzerland, where it would attract unwanted attention.

There is also the psychological and political aspect of feeling welcomed. Recently in Switzerland, a left-wing political movement proposed introducing a 50% tax on inheritances over 50 million CHF (Why the wealthy are leaving Switzerland – Euro Weekly News), arguing that the ultra-rich should contribute more to the common good (particularly in the fight against climate change). Even if this initiative is yet to be voted on and has little chance of being implemented quickly, it sends a negatively perceived signal to the great fortunes. “The first departures have already occurred,” worries a Swiss deputy, noting that several wealthy individuals are planning to leave for fear of such laws. This somewhat more hostile or at least uncertain political climate in Switzerland contrasts with Monaco, where stable and favorable fiscal policies are taken for granted.

In the Principality, no one challenges the current tax regime, and the princely family works to maintain the Rock’s attractiveness to international elites. This sense of being welcomed in Monaco, without being subject to public debate, can tip the scales for Swiss fortunes who may feel increasingly marginalized at home. Finally, the allure of the pure Monegasque lifestyle should not be underestimated: an idyllic climate, absolute security, absence of restrictions (no rigid closing hours, possible Sunday shopping, ultra-personalized service everywhere), and a vibrant social scene during high season all contribute to creating an enticing environment for those who can afford it. For an entrepreneur who has sold his business or a Swiss heir to a fortune, Monaco often represents both a reward and the dream of a “perpetual summer” after years spent under Swiss austerity. Many of them do maintain a pied-à-terre in Switzerland, but choosing Monaco as their primary residence is a global lifestyle choice that integrates fiscal, social, and emotional dimensions.

Comparative Table: Switzerland vs Monaco on Key Criteria

To summarize the differences discussed, the table below compares Switzerland and Monaco according to various key criteria for wealthy residents:

Table: Switzerland vs Monaco Comparison by Petrini Exclusive Real Estate Monaco on taxation, lifestyle, and other relevant criteria for wealthy residents.

Why Swiss Choose Monaco: Beyond Taxes

Despite an already advantageous Swiss tax system compared to most countries, more and more Swiss millionaire taxpayers are choosing Monaco. The reasons, as we have seen, are manifold. Certainly, the tax argument remains decisive—no longer paying income tax or wealth tax is enough to convince those who contribute the most in Switzerland (remember that 1% of the richest taxpayers pay more than half of the direct federal tax in Switzerland). For some families, the tax burden in Switzerland (even when optimized by choosing a favorable canton) becomes significant over generations or following entrepreneurial successes. Monaco then offers a radical and legal optimization. For example, facing the threat of a referendum introducing a 50% tax on large inheritances, several major Swiss fortunes have publicly announced plans to leave. In this context, Monaco appears as a safe haven where such fiscal surprises do not exist.

However, reducing this movement to a mere economic matter would be too simplistic. Numerous testimonies highlight the appeal of the Monegasque lifestyle: an idyllic climate, a sense of total security, and a social life marked by galas and international events. A CNN Money article noted that “the combination of a mild climate year-round, political stability, and a calendar full of prestigious events (Grand Prix, etc.) proved particularly attractive” for the wealthy in Monaco. For a Swiss enthusiast of sailing or motorsports, living in Monaco can be a dream come true—the possibility of encountering celebrities, cruising on one’s yacht, participating in lavish charity events, all within a few kilometers. This Monegasque lifestyle is hard to replicate elsewhere.

There is also the desire for a homogeneous social environment. In Monaco, most residents share a high standard of living. As Eugenia Petrini, founder of Petrini Exclusive Real Estate—the Monaco real estate agency favored by Swiss clientele—explains, “unlike other countries with a better tax system than Switzerland but often far away, the Swiss do not want to feel exiled. Monaco is the ideal social and cultural choice for a significant portion of the world’s wealthy.” Everything is easily accessible, and people speak French or English in a cosmopolitan setting. This community of fortunes creates a valuable network: private clubs (such as the Swiss Club of Monaco, founded in 1949 and still very active) facilitate business or friendly meetings among compatriots and investors. A Swiss tech entrepreneur might end up networking with an English financier or an Italian industrialist in a relaxed setting, opening up opportunities or simply offering a stimulating social circle. In contrast, in Switzerland the wealthy can sometimes feel isolated or, conversely, too much in the spotlight (as success can sometimes arouse uncomfortable curiosity). The prestige of the address also plays a role: having a pied-à-terre in Monaco has almost become a status symbol, comparable to owning a villa in Saint-Tropez or a penthouse in New York. For some, the choice of Monaco is driven by this quest for distinction within the international elite.

Let us not forget more personal or psychological factors: the desire for change after years in Switzerland, the appeal of the maritime climate for health, or even family considerations (for example, if children study abroad, a retired Swiss couple might decide to spend their retirement in sunny Monaco while remaining only a few hours’ flight from their grandchildren). Moreover, long-term stability is perceived as strong in Monaco: the Prince and his government ensure continuity and protect the interests of residents, while in Switzerland direct democracy—although a guarantee of overall stability—can occasionally generate uncertainties (popular initiatives on high salaries, on mass immigration, etc., scrutinized by economic circles). For those fearing future changes in wealth regulations, diversifying one’s residency is a form of insurance. Monaco, with its special status, limited but real sovereignty, and alignment with France, offers a different political refuge in the event of upheavals.

In conclusion, the movement of some wealthy Swiss towards Monaco is the result of a multifactor equation: undeniable tax advantages, yes, but also the appeal of a luxurious and secure lifestyle, the influence of a community of peers, as well as symbolic and preventive considerations for the future. Switzerland remains a paradise of stability and prosperity, but Monaco embodies another kind of paradise—one of sunshine, glamour, and total security—which explains why even citizens from a country as admired as Switzerland are drawn to the Monegasque adventure. In any case, understanding these dynamics is essential for our clients to better guide their decision on whether to reside in Geneva, Zurich… or Monte Carlo.