(May 17): If you want to join Monaco’s richest 1%, you’ll need an eight-figure fortune.

It takes US$12.4 million (RM56.1 million) to make the cut in the tiny Mediterranean principality, according to research from Knight Frank, where billionaire residents such as UK industrialist Jim Ratcliffe and Walgreens Boots Alliance chairman Stefano Pessina typically don’t face income or capital gains taxes.

Switzerland and Australia have the next highest entry points to the 1%, with Switzerland requiring a net worth of US$6.6 million and Australia, a net worth of US$5.5 million, according to data released Wednesday (May 17) as part of the property broker’s 2023 Wealth Report. In the US, US$5.1 million will get you over the threshold.

The findings underscore how the pandemic and surging living costs are widening the gap between rich and poor nations. The entry point for Monaco’s richest is more than 200 times greater than the US$57,000 needed to join the 1% in the Philippines, which is one of the lowest ranked of 25 locations in Knight Frank’s study.

Lower-income households worldwide are feeling the burden of inflation, which has forced them to spend a far larger share of their income on food and housing, according to the World Bank. Meanwhile, the world’s 500 richest people have added almost US$600 billion to their combined fortunes this year, according to the Bloomberg Billionaires Index, with Meta Platforms Inc founder Mark Zuckerberg gaining the most.

“Growing inequality globally could see a greater focus on this group — particularly in the sights for greater taxation on assets and even emissions,” Flora Harley, a partner in Knight Frank’s research team, said in a statement.

The global number of ultra wealthy individuals fell 3.8% in 2022 to about 580,000 after surging the previous year. Still, Middle East nations including the United Arab Emirates and Saudi Arabia saw an increase last year as energy prices rebounded, according to Knight Frank.

“The recent dip will prove short lived as we adapt to a new economic environment,” said Liam Bailey, Knight Frank’s global head of research.