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real estate market drop in 2017

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First of all, we should remember that for the last 7-8 years Russia was a main supplier of high-end buyers of real estate in Monaco. They were buying large 4-bedroom apartments in upper market segment. Russia’s prolonged economical crisis, economic and political sanctions started to become effective and affected … economy of Monaco. Even the banks in Monaco are now obliged to conduct proper due diligence of the Buyers and ask for the proof of source of income and relevant taxes paid. Can they be provided by majority of potential Monaco realty buyers from Russia or Ukraine? Answer is clear – no.
Last year investigations concerning Senator Kerimov purchases in neighboring France were a clear indicator that Golden age of Russian money is coming to an end. Saudi anti-corruption campaign was a clear signal to prince-level elite to stop “dirty” investments as well.
People were buying in Monaco to pay 0% income taxes. But in most of European countries Monaco was blacklisted as high-risk destination connected to financing terrorism and money-laundering. It became easier to pay low taxes in Estonia, Bulgaria and leave a peaceful tax life.
No doubt Monaco is one of the very few capitals on the sea in Europe, one of the fewest on warm sea. But tax-heaven still has я lot to do to become heaven for its inhabitants.