Many celebrities and rich people live exclusively in Monaco, because here are the lowest luxury tax

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Many celebrities and rich people live exclusively in Monaco, because here are the lowest luxury tax Monaco is a sovereign city-state, situated on the coast of French Riviera. This little country is bordered only by France on three sides; one side borders the coast of Mediterranean Sea. Monaco has an area of 2.02 km2 and a population of more than 36,000. Monaco is the second smallest (after Vaticano) but the most densely populated state in the world (the length of its coastline: 4, 4 km).

Monaco is a princedom governed under a constitutional monarchy, and head of state is a Prince Albert II. Although he is a constitutional monarch, Prince Albert still has great political power. The Dynasty of Grimaldi have ruled here, with not long interruptions, since 1297. The official language here is French, but also is a widely spoken and understood Monégasque, Italian, and of course, English. The sovereignty of Monaco was formally acknowledged by the Franco-Monegasque Treaty of 1861. Monaco became a United Nations voting member only in 1993. Despite Monaco's sovereignty and independent foreign policy, defense of the state is the obligation of France. Nevertheless, Monaco also does maintain two small military units.

Monaco’s economy is developed mainly by such specific spheres as tourism, gambling, construction of new residences, as well incoming of the info-media that show the life of the reign family. Many celebrities, sportsmen and rich people live exclusively in Monaco, because here are the lowest "luxury tax".

Advantages of such economic policy: guaranteed bank secrecy and low taxes attract in Monaco billions of dollars abroad. In the late 1990`s amount of money stored in the banks of Monaco had an annual growth of 18%. No external debt, foreign exchange reserves are of the order of $ 2 billion and unemployment rate is lowest in the world ( 3%).

Disadvantages: by agreement with France of 1994 suspicious accounts may be disclosed by banks. However it became typical for many countries in the world. Dependence on economic fluctuations in France and Italy. Value-added tax is 55 %. Lack of resources, complete dependence on imports.

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