Summary:

Already on par with real estate prices in New York and London, Monaco property prices could be set to go even higher in 2007.

Recent surveys are all showing positive signs for Europe's favourite tax haven.

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Prices for property in Monaco could rise steeply in the next couple of years, and Europe's favourite tax haven could be out of reach for some millionaires, according to a Monte Carlo travel guide.

Different recent surveys have all been good indicators for Monaco, with more people likely to apply for residency and buy property in Monaco. Buyers from the UK in particular are expected to rise in number.

Commenting on the findings, travel guide for Monaco http://www.yourmonaco.com say 'While we would like perhaps to imagine that it's the fine cuisine and good weather in Monaco that is attracting the British to Monaco, we know realistically that it is because residency entitles them to a zero-rated income tax.

One survey says that the number of millionaires in the UK will increase four-fold in the coming years, and the UK has become a very important market for Monaco real estate recently - that will boost prices as the demand feeds through. Another survey coming out of the UK predicts that house prices will rise by 70 per cent over the same period. Inheritance tax in the UK is quite a big issue at the moment as many more people are above the government threshold due to their house price, and in Monaco there is no inheritance tax, which gives an added incentive for some to move to a tax haven. People choose to leave their money to their children, cutting out the government that would take a large share.'

A CBRE report on world property also noted that Monaco real estate prices match those of London and New York's Manhattan.

'Apart from the very obvious financial advantages that can be had by moving to Monaco', conclude YourMonaco.com, 'Perhaps the most telling survey for us was the one by Laura McKenzie, a US travel expert. She puts Monaco as the number one destination for safety. For people with money, preserving and optimising what you have in the bank is important, but so is the ability to walk down the street without fear. Monaco provides both the financial and personal security the wealthy seek, and it should come as no surprise when they decide Monaco is the best place for them and their families to live.'

Monte Carlo Hotels

Apart from being a tax haven, the principality is perhaps best known for the Monaco Grand Prix.

In addition to the race that takes place each May, the world's premier yacht show is held in September, attracting millionaires and billionaires to view what the yachting world has to offer.