Why wealthy Brits are choosing Monaco over London

Giles Mackay, a property tycoon, has sold his Chelsea home to the president of the United Arab Emirates, Sheikh Mohammed bin Zayed Al Nahyan. Mackay, 62, has since moved to the Principality, according to an article published in the Times on September 16.

Formerly featuring on The Sunday Times Rich List, Giles Mackay moved to Monaco shortly after the £65 million sale concluded in November of last year.

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A source close Mackay claimed there were “numerous factors” in the move, says the Times.

Given the timing of his departure, fiscal optimisation may be one of those factors. The Times reported the previous week that over 9,500 wealthy Britons were expected to move this year, especially since the change of government, with the super-rich fearing tax changes like the abolition of ‘non-dom’ status, may also be applied to capital gains tax.

If these projections prove to be founded, Monaco could well figure on the list of possible new homes for some of those seeking to leave the UK. The Times reports Henley & Partners, which helps wealthy clients move overseas, as saying that most are choosing Dubai, although Switzerland, Portugal, Italy and Cyprus are also popular. However, while many countries, such as Dubai, Malta, Singapore etc. now offer fiscal sanctuary to ‘N-Reses’, the arrangements can be as transient as those who seek to benefit from them.

For example, Italy recently offered N-Reses a flat €100,000 tax bill regardless of earnings, only to double it shortly after. Portugal offered a golden visa to people who bought property but had to do a sharp U-turn when the local population complained they had nowhere to live.

The Monaco Government’s ongoing efforts on Attractiveness will surely not have gone unnoticed and, tax advantages aside, the Principality’s well-earned reputation for safety will be a winning argument for some, especially those with young families, who will also appreciate the Principality’s record on education.

Should he feel homesick, Mr. Mackay will find no shortage of Brits who have made the same choice as himself to move to Monaco.

Sir Stelios Haji-Ioannou of easyJet fame, has joint British and Cypriot nationality and has lived in Monaco since he was a teenager. Sir Jim Ratcliffe, the CEO of INEOS and owner of Manchester United and OGC Nice football clubs, officially changed his tax residence from Hampshire to Monaco in 2020.

Other business figures include Sir Philip Green of Topshop fame, and Baron McAlpine.

On the cultural side, Dame Shirley Bassey, the famous diva, is also a Principality resident and Grand Officer of the Order of Saint Charles, and Ringo Starr, the former Beatles drummer, owns a home in Monaco.

Many British sportspeople are also Monaco residents, with quite a ‘paddock’ of racing drivers and F1-related figures, including Lewis Hamilton, Lando Norris, George Russell, retired driver and F1 commentator David Coulthard, as well as former driver Eddie Irvine and former F1 owner Bernie Ecclestone.

Today’s fun fact: the Boltons property sold by Giles Mackay has seen a number of other famous residents move in and out over the years, including Madonna, Douglas Fairbanks Jr and… Beatrix Potter. The property has a glass lift, basement swimming pool and cinema. Mackay and two developer friends built it and its two neighbouring mansions after buying the land for £13 million in 2001.