Why Millionaries have residency on Monte Carlo?

I always hear about that on tennis or F1 broadcasts that this or that person has residency there because he is 'smart' and wants to avoid tax, I wonder how they do it(I guess its all legal).Double citizenship?

 

Before this "new" thread gets out of control, here are your bullet points:

- Monaco does not have income tax or capital gains for INDIVIDUALS residing there
- You need to spend at least 183 days in the principality to be considered an official resident. Of course you have to own or rent property.
- To be approved, you have to be relatively wealthy with high income or high net worth (probably at least a mil)
- If you are a US citizen or a green card holder, you will be taxed by the IRS on worldwide income regardless of where you reside.
- Most other western countries (such as UK, France, Germany, Italy, Canada, etc) will not tax you on worldwide income if you don't reside in the country of citizenship.
- It helps to actually become wealthy first before start worrying about taxes. But dreaming is what keeps some of us going, including me

Enjoy!

 

you're coorect they screwed boris becker as he was residing in germany more than monoco

 

here is an Idea...give up your US citizenship so you wont be taxed. If you want to come back to the US after a while, Monaco is on the Visa waiver program with the US so you dont need a visa to get back home.

 

Your residence in Monaco would not entitle you to a citizenship/passport of that country. It takes over 10 years of residence to earn that... I think there is a general confusion out there on the difference between residence and citizenship.
By the way, if you give up your US citizenship before acquiring a new one, you are in effect becoming a stateless person (kind of like the Palestinians). So no visa-free travel there...
Also, if the US government decides that you gave up your citizenship for tax reasons, you maybe banned from the country for a few years (even to visit for vacation)...

 

After you give up your US citizenship, I believe you still have to pay US taxes for up to 5 years.

 

Here is some interesting information... It looks like there's been some changes in the law... Also, Section 877 is supposed to be the "punishment"...

http://www.irs.gov/instructions/i8854/ch01.html#d0e155

 

Yeah,
and don't forget how they screwed Steffi Graf and her dad for wanting to reside in Germany!

 

Is there any other country that can work sort like Monaco?

 

Gibraltar has no residence requirement