Table of Contents
- Tax Comparison 2025: Switzerland vs. Dubai vs. Monaco in Detail
- The Hidden Costs: What Millionaires Really Pay
- Switzerland for Millionaires: More Than Just Low Taxes
- Dubai as a Tax Haven: 9% Isn’t Everything
- Monaco: Luxury Without Income Tax?
- Full Cost Comparison: Taxes + Living Expenses
- The Strategic Decision: Which Location Suits You Best?
- International Tax Planning for the Wealthy: 7 Practical Tips
- Frequently Asked Questions
Yesterday, an entrepreneur from Munich called me. His question was simple: “Richard, I make 5 million a year. Where do I pay the least?”
My answer surprised him.
Because I didn’t say “Dubai” or “Monaco.” Instead, I countered: “What’s more important to you—saving €200,000 in taxes or a life that excites you every day?”
That’s the point.
Many wealthy individuals make the same mistake. They focus solely on tax rates. Meanwhile, they forget about their total cost of living. And that can get expensive.
Today, I’ll show you the full cost comparison. With real numbers. No theory—just insights from over 15 years of advising millionaires.
You’ll also find out why the lowest tax burden isn’t automatically the best option. And which hidden costs can completely change your calculations.
Ready for the truth about tax havens?
Yours, RMS
Tax Comparison 2025: Switzerland vs. Dubai vs. Monaco in Detail
Let’s get straight to the facts. The headline tax rates seem clear at first glance.
The Bare Tax Figures for Millionaires
| Country/Region | Income Tax | Capital Gains Tax | Wealth Tax | Inheritance Tax |
|---|---|---|---|---|
| Switzerland (Zug) | 11.5% – 22% | 0% | 0.1% – 0.3% | 0% – 3.5% |
| Dubai (UAE) | 0% | 0% | 0% | 0% |
| Monaco | 0% | 0% | 0% | 0% |
Source: OECD Tax Statistics 2024, local tax authorities
At first glance, it seems obvious. Dubai and Monaco come out on top.
But not so fast.
This table only tells half the story. So let’s dig deeper.
Tax Nuances That Change Everything
Switzerland: Cantons have different tax rates. Zug is the favorite among the wealthy. There’s also lump-sum taxation for foreigners—a real insider tip.
Dubai: Since 2023, a 9% corporate tax applies to profits over 375,000 AED (approx. €102,000). This primarily affects companies, not private individuals.
Monaco: French nationals still have to pay French taxes. This is often overlooked.
These details already significantly affect the calculations. But that’s only the beginning.
The Hidden Costs: What Millionaires Really Pay
This is where reality comes in. Taxes are only one component of your total costs.
I repeatedly see clients move to Dubai and end up spending more than they did in Germany. Why? The hidden costs.
Cost of Living at the Millionaire Level
| Type of Cost | Switzerland (Zurich) | Dubai | Monaco |
|---|---|---|---|
| Luxury Apartment (200m²) | 8,000 – 15,000 CHF | 25,000 – 40,000 AED | 15,000 – 30,000 EUR |
| Private School (per child) | 30,000 – 50,000 CHF | 80,000 – 120,000 AED | 25,000 – 40,000 EUR |
| Private Health Insurance | 8,000 – 12,000 CHF | 15,000 – 25,000 AED | 5,000 – 8,000 EUR |
| Domestic Help/Security | 60,000 – 80,000 CHF | 40,000 – 60,000 AED | 40,000 – 60,000 EUR |
Source: Numbeo 2024, local real estate agents
These figures surprise many of my clients. Dubai, in particular, is more expensive than expected.
Administrative and Legal Fees
Then there are costs no one talks about:
- International Tax Advice: €15,000 – €50,000 per year
- Legal Structuring: €20,000 – €100,000 one-time
- Compliance and Reporting: €10,000 – €25,000 per year
- Business Travel Expenses: €30,000 – €80,000 per year
- Maintaining Dual Households: €50,000 – €150,000 per year
These items quickly add up to €125,000 to €405,000 per year. That equates to a tax burden of 2.5% to 8.1% on an income of €5 million.
Suddenly, those tax havens don’t look quite as appealing, do they?
Switzerland for Millionaires: More Than Just Low Taxes
Switzerland is my personal favorite for many wealthy clients. Not for the lowest taxes, but for the total package.
Lump-Sum Taxation: The Underestimated Perk
This is where it gets interesting. Switzerland offers foreigners lump-sum taxation. You are taxed not on your worldwide income, but based on your living expenses in Switzerland.
The calculation works like this:
- At least 7 times your annual rent, or
- At least 400,000 CHF for residencies in expensive cantons
- Actual taxes: computed individually
Example: You earn €3 million, live in Zug and pay CHF 200,000 in rent. Your taxable base is CHF 1.4 million (7x rent). At a rate of 22%, you pay CHF 308,000 in tax.
Quality of Life and Infrastructure
What many overlook: Switzerland offers a world-class infrastructure.
- Education System: Top universities and international schools
- Healthcare: First-class medical care
- Safety: Among the lowest crime rates worldwide
- Legal Certainty: Stable political conditions for decades
- Accessibility: 2 hours to Paris, London, Milan
These factors have real value—and they can be quantified.
Hidden Advantages for Business
You’ll also benefit from Switzerland’s business reputation. My clients regularly report better terms on:
- Bank transactions and borrowing
- Business partnerships and joint ventures
- Investment opportunities and family offices
- Access to exclusive networks
These are soft factors—but they have a tangible impact on your wealth.
Dubai as a Tax Haven: 9% Isn’t Everything
Dubai is currently the “rising star” among tax havens. Is it deserved?
Yes and no. Let me be honest.
The Advantages of Dubai for the Wealthy
Dubai certainly has compelling arguments:
- 0% income tax for individuals (still valid in 2025)
- No capital gains tax on dividends and share profits
- Freezone structures for international business
- Golden Visa for long-term residency
- Time zone perfect for business with Asia and Europe
Plus, an impressive infrastructure. Dubai has built a world-class city out of the desert in just 20 years.
The Downsides No One Talks About
But there are drawbacks, often glossed over:
Climate challenges: Six months of the year are scorching hot and virtually unlivable. Many of my clients still spend summer in Europe—extra costs.
Cultural adaptation: Social life is different. Less spontaneous, more planned. Alcohol is expensive and regulated.
Legal uncertainty: The legal system is still developing. In major disputes, this can become an issue.
International recognition: Some European banks remain skeptical about Dubai structures.
The Real Costs in Dubai
Here’s my honest budget breakdown for a typical wealthy Dubai resident:
| Type of Cost | Annual Costs (EUR) | Special Notes |
|---|---|---|
| Apartment + utilities | 120,000 – 200,000 | DEWA (electricity) is very expensive |
| Schools (2 children) | 40,000 – 60,000 | International schools mandatory |
| Health insurance | 8,000 – 15,000 | Private insurance required |
| Car + driver | 25,000 – 40,000 | You can’t live without a car |
| Summer residence in Europe | 60,000 – 120,000 | Almost everyone does this |
| Travel to Europe | 15,000 – 30,000 | Business + family |
Total costs: €268,000 – €465,000 annually
With an income of €5 million, this is a “cost-of-living tax” of 5.4% to 9.3%.
Suddenly, Switzerland starts looking more attractive again, doesn’t it?
Monaco: Luxury Without Income Tax?
Monaco is the dream of many wealthy individuals. No wonder—the principality offers a unique combination.
The Monaco Benefits for Millionaires
Monaco boasts some truly distinctive advantages:
- 0% income tax (except for French nationals)
- No inheritance tax on direct succession
- Banking secrecy and discreet asset management
- Safety—more police per capita than anywhere else in the world
- Networking with the global elite
- Lifestyle blending luxury and Mediterranean charm
On top of that: Monaco is tiny. You can walk everywhere. This creates a special sense of community.
The Price of Paradise
But Monaco has its price. And it’s high:
Real estate: The most expensive in the world. For a decent 3-bedroom apartment, expect to pay €8–15 million. Rents start at €15,000 per month.
Minimum deposit: Banks often require minimum deposits of €1 million and up. Some ask for €5 million or more.
Admission criteria: Monaco is selective. You must prove you can afford the lifestyle. That means: readily available assets of at least €500,000 plus a property purchase or long-term rental.
Monaco’s Total Cost Breakdown
Here’s a realistic annual budget for living in Monaco:
| Type of Cost | Annual Costs (EUR) | One-off Costs (EUR) |
|---|---|---|
| Real estate (rent) | 180,000 – 360,000 | – |
| Real estate (purchase, annualized) | 400,000 – 750,000 | 8,000,000 – 15,000,000 |
| Cost of living | 100,000 – 200,000 | – |
| Residence proof / attorney | 15,000 – 25,000 | 50,000 – 100,000 |
| Private security | 30,000 – 60,000 | – |
| Yacht/car/lifestyle | 200,000 – 500,000 | – |
Total annual costs: €525,000 – €1,395,000 (not including property purchase)
Monaco only really makes sense with a net worth of €10 million or more. Below that, things get tight.
The French Pitfall
Important note: French nationals pay French taxes even with Monaco residency. Due to the 1963 double tax treaty, Monaco is not a tax haven for the French.
German nationals with strong business ties to France should also be cautious. French authorities are increasingly strict in their reviews.
Full Cost Comparison: Taxes + Living Expenses
Now comes the moment of truth. Let me break down the total costs for you—openly and honestly.
Scenario: €5 Million Annual Income
Assumptions: Married, 2 children, premium lifestyle, international business
| Location | Taxes | Living Expenses | Additional Costs | Total Costs | Net Available |
|---|---|---|---|---|---|
| Germany (Munich) | 2,100,000 | 250,000 | 50,000 | 2,400,000 | 2,600,000 |
| Switzerland (Zug) | 365,000 | 300,000 | 75,000 | 740,000 | 4,260,000 |
| Dubai | 0 | 350,000 | 150,000 | 500,000 | 4,500,000 |
| Monaco | 0 | 800,000 | 100,000 | 900,000 | 4,100,000 |
Surprise: Dubai barely beats Switzerland!
But that’s just one scenario. Let’s look at some others.
Scenario: €10 Million Annual Income
| Location | Taxes | Living Expenses | Additional Costs | Total Costs | Net Available |
|---|---|---|---|---|---|
| Germany | 4,500,000 | 300,000 | 75,000 | 4,875,000 | 5,125,000 |
| Switzerland (Lump-sum) | 440,000 | 400,000 | 100,000 | 940,000 | 9,060,000 |
| Dubai | 0 | 450,000 | 200,000 | 650,000 | 9,350,000 |
| Monaco | 0 | 1,000,000 | 150,000 | 1,150,000 | 8,850,000 |
This shows: Dubai dominates at higher income levels. Switzerland, though, remains a strong alternative.
The Truth About the “Real” Winners
In my consulting practice, I can tell you: the calculation often turns out differently than expected.
Dubai wins by the numbers from €3 million annual income upward. But many of my clients move away again after 2–3 years. Why? The quality of life doesn’t suit them.
Switzerland wins for consistency. My Switzerland clients stay for an average of 8+ years. That pays off in the long run.
Monaco only works for the absolute elite with €20+ million in assets. For them, it’s perfect.
The Strategic Decision: Which Location Suits You Best?
Now it gets personal. After all, the best tax strategy is always tailored to you.
After 15 years advising clients, I know the patterns. Let me help guide your decision.
You’re a Fit for Switzerland If You…
- Value political stability and legal certainty
- Want your children to get a world-class education
- Regularly do business in Europe
- Prefer discreet asset management to squeezing out the last tax break
- Plan for the long term (10+ years)
- Have an income between €2–15 million
Switzerland is the marathon runner among tax havens—steady, reliable, sustainable.
Dubai Is Right for You If…
- Your top priority is maximizing tax savings
- You’re flexible on where you live (and spend 6 months elsewhere for summer)
- Your business is mainly online/international
- You’re between 25–45 years old (adaptable)
- Networking in the global expat community excites you
- You want to spend 3–8 years there (not necessarily forever)
Dubai is the sprinter. Fast wins, less long-term stability.
Monaco Might Be for You If…
- Your net worth is over €20 million
- Exclusivity and prestige are key factors
- You mainly live off investment income
- You’re drawn to French/Mediterranean culture
- Top priority is discreet wealth management
- You’re willing to invest €8+ million in real estate
Monaco is Formula 1. Only for the elite—but for them, unbeatable.
The Decision Tree for Your Situation
Here’s my proven decision tree:
- Net worth under €5 million: Stay in Germany for now, optimize step by step
- Net worth of €5–20 million: Switzerland or Dubai, depending on lifestyle preference
- Net worth over €20 million: All options open, Monaco becomes interesting
- Annual income over €10 million: Dubai has the mathematical edge
- Family with school-age children: Switzerland or Monaco are best
- Business mainly in Europe: Switzerland is optimal
- Digital business, location-independent: Dubai is an option
This is my honest assessment after hundreds of consultations.
International Tax Planning for the Wealthy: 7 Practical Tips
To conclude, here are my key practical tips—insights that have saved my clients millions.
1. Try Before You Move for Good
Spend six months in your chosen country first. Live like a local, not a tourist.
My recommendation: Rent an apartment, officially register, open a bank account. Only if you feel comfortable after six months, consider the full relocation.
2. Restructure Gradually
The most common mistake: Changing everything at once. That leads to stress and costly errors.
Better: Relocate just a portion of your income to start. Test the structures. Only after 12–18 successful months make the move complete.
3. Document Everything Meticulously
German tax offices scrutinize emigrations closely. Collect evidence for:
- Periods spent abroad (flight tickets, hotel bills)
- Main residence (rental agreements, insurance policies)
- Business activity (contracts, e-mails with timestamps)
- Social ties (club memberships, invitations)
4. Take Tax Treaties Into Account
Many overlook this: Even tax havens may have a double taxation agreement (DTA) with Germany. These could wipe out your tax savings if you’re not careful.
Example: Switzerland taxes real estate income. If you have German rental property, it’s taxed in Germany even if you live in Switzerland.
5. Plan for a Potential Return
No consultant usually tells you this: Plan for an eventual return to Germany from day one.
Why? 70% of my clients come back sooner or later—for family, health, or life changes.
Structure things so a return doesn’t become a tax disaster.
6. Invest in First-Class Advice
Don’t cut corners here. An experienced international tax adviser costs €50,000–100,000 for a complete package.
It sounds like a lot. But they often save you 10–20 times as much in taxes and mistakes.
7. Always Stay Compliant
Most important: Never take legal risks.
Aggressive tax strategies can backfire. Then you’ll owe not just back taxes, but interest, penalties, and legal fees.
My rule: Better to pay €100,000 more in tax than take on €500,000 in risk.
Frequently Asked Questions: Comparing Taxation Switzerland vs. Dubai vs. Monaco
Is it legal to move abroad just for tax reasons?
Yes, it’s completely legal. You have the right to freely choose your residence. What matters is that you meet all the legal requirements of your destination country and observe Germany’s exit rules.
How long do I have to live in a country for tax residency to be recognized?
Most countries require a minimum stay of 183 days per year. But it’s not only about the days, it’s also about your main center of life. You should be able to prove that you truly live and work there.
What happens to my German property if I emigrate?
German rental income remains taxable in Germany, even after you move. This applies to rental income and capital gains. Tax treaties help avoid double taxation.
Can I keep my German health insurance?
Usually not. When you move abroad, your insurance obligation in Germany ends. You’ll need private health insurance in your new country. Some insurers offer international plans.
What are the costs for a professional emigration?
Expect €50,000–150,000 for complete tax and legal guidance. This includes structuring, registrations, ongoing compliance, and first-year support. It can be more for complex cases.
Which country is easiest for Germans?
Switzerland is often the simplest. Similar culture, short distance to Germany, and established infrastructure for German expats. Dubai requires more cultural adjustment but offers greater tax benefits.
Do I have to close my German bank accounts?
Not necessarily, but many banks close accounts of non-residents automatically. Plan early to switch to a bank serving international clients. Private banking units are generally more accommodating.
What about receiving a German pension abroad?
German pensions are generally paid abroad as well. In countries without a social security agreement, deductions may apply. In Switzerland, Dubai, and Monaco, payment is usually unproblematic.
How does the German tax office react to emigration?
Strict, but fair. Authorities check closely whether you’ve really moved or if it’s a sham relocation. Document everything thoroughly: stays, housing, business activity. With proper documentation, there are usually no issues.
Can I return to Germany later without problems?
Yes, in principle. But plan for the tax consequences. On your return, worldwide income becomes taxable in Germany again. Good structuring can help even on return.
