Paul Smith, a successful entrepreneur and property investor, estimates his net worth to be around €84 million (approximately £70 million). When accounting for his various business ventures, his wealth swells to an impressive €200 million (£165 million). Currently, he resides in the luxurious Tour Odéon, a striking double-skyscraper situated in the principality of Monaco. His apartment boasts breathtaking views of the Mediterranean, with France to the left, the vibrant city of Monaco below, and Italy to the right.
This opulent apartment features four spacious bedrooms, three expansive terraces, and five well-appointed bathrooms. Paul pays a staggering €50,000 monthly in rent, alongside an additional €5,000 for service charges. The latter covers access to the apartment’s exclusive amenities, which include daily housekeeping, a chauffeured limousine service, a luxurious spa, a Cipriani-run café, and a 24/7 concierge service. All these services can be conveniently booked through an integrated screen within each apartment.
Investment Philosophy
“If I were to purchase this flat, which I certainly could do, it would cost around €25 million,” he states. “However, there’s little potential for capital appreciation in Monaco.” Instead, Paul, who is also the co-founder of Touchstone Education, opts to invest his wealth in alternative assets such as gold bullion. “In my view, investing in property here isn’t wise given the already exorbitant prices,” he remarks.
Since moving from the UK to Monaco in 2022, Paul has made this stunning locale his home, along with his wife and youngest child. His other five children are now adults and have established their own lives elsewhere. Reflecting on his previous residence, he shares, “We bought a grand old house in Scotland back in 2003, which had been transformed into a nine-bedroom nursing home. We converted it back into a family home, located in Rhu on the picturesque West Coast of Scotland, right by the sea.”
While Monaco is renowned for its tax benefits, Paul asserts that this was just one of the factors influencing his move. “If my primary reason for relocating was to minimize taxes, I’d have chosen somewhere like Dubai or Thailand, where tax rates are even lower,” he explains. In Monaco, residents benefit from the absence of capital gains tax, personal income tax, and inheritance tax (for direct descendants); however, corporation tax is still applicable. “We pay about €233,549 (£192,964) in corporation tax annually to the Monaco government. This amount can vary depending on the business’s specifics,” he clarifies.
Life in Monaco
Paul attributes his decision to move to Monaco to its appealing climate, rich culture, and exquisite cuisine. “We recently planted olive trees on one of our terraces, and to arrange that, I had to converse in French, Italian, and Spanish. If your children attend school here, they typically learn four to six languages,” he notes. He appreciates the Mediterranean lifestyle, which he finds far less stressful compared to British life. “Here, punctuality isn’t as rigid; being 10 minutes late isn’t a catastrophe,” he remarks.
Although he acknowledges that living in Monaco requires substantial wealth, he believes the prevailing perceptions about the principality are often misguided. “Monaco is incredibly dedicated to environmental causes and philanthropy. It’s not merely about flaunting wealth like in America; it embodies a form of liberal social capitalism,” he asserts.
“Almost everyone here is a millionaire, with some even being billionaires. A friend of mine is part of the Giving Pledge, which is a commitment by the world’s wealthiest individuals to donate the majority of their wealth to charitable causes. To join that club, you must be a billionaire. At 60, my goal is to achieve billionaire status by 65 so I can become a member,” he shares.
Paul’s social circle includes notable figures such as Eddie Jordan, the former F1 owner. He believes that in Monaco, excellence in sports and business often go hand in hand, fostering a culture that celebrates success. “In the UK, there’s often a stigma associated with significant wealth, leading to guilt and discomfort. Here, if you own a Lamborghini, people congratulate you rather than judge you. The principality has stringent anti-money laundering regulations, so if you’re living here, your wealth is generally deemed legitimate,” he explains.
The population of Monaco is approximately 38,000, with around 8,000 being Monegasque nationals, while the remaining 30,000 are residents like Paul. As expected, obtaining residency in Monaco is no simple task. Prospective residents must demonstrate they possess €500,000 in liquid assets and maintain a Monegasque bank account. “I already had an account with Julius Baer in Switzerland, but if you don’t, it can be complicated. For instance, Barclays has a branch in Monaco, so you can transfer your account there. After that, your bank must write to the government to verify the source of your wealth and conduct an audit,” he explains.
“Julius Baer had already completed this process for me, but I still had to dig out documentation tracing back decades,” Paul adds. Applicants must also provide proof of residency in Monaco for at least 12 months, such as a utility bill, and while having an EU passport is advantageous, it is not mandatory. “My mother is Irish, which allowed me to acquire an Irish passport through her, significantly easing my transition to Monaco,” he explains.
Initially, new residents must apply for residency every year for the first three years. After that, they receive a three-year residency, followed by a 10-year residency. “You cannot apply for a passport until you have lived here for a decade, and even then, it’s quite rare, with Prince Albert II of Monaco personally making the decisions on who receives citizenship. A friend of mine was thrilled to obtain one after 30 years. I even met the prince with him; he’s genuinely a lovely person who actively participates in Monaco’s community, attending school graduation ceremonies and engaging with residents,” he shares.
While Paul does miss his friends and family back in the UK, they often visit him in Monaco, and he expresses no regrets about his relocation. “I recently visited Heathrow, and it struck me how unhappy people in the UK seem. It felt like I was watching a black-and-white film without sound,” he concludes.
