Personal taxation in Monaco

Income tax

As a rule, a French national who moves to Monaco remains taxable in France on their worldwide income, under the same conditions as if they were domiciled in France, in accordance with article 7-1 of the France-Monaco tax treaty of 18 May 1963.

This covers in particular:

• salaries and remuneration;
• dividends and interest;
• capital gains on securities;
• real estate income;
• income from foreign accounts and investments.

For a French national, moving to Monaco therefore generally has no effect on French income tax.

Certain historical or family situations do, however, fall outside this rule, in particular French nationals settled in Monaco before 13 October 1957, those born in Monaco who have always lived there, and a few specific situations expressly provided for by the France-Monaco agreements.

Real estate wealth tax (IFI)

A French national treated as tax domiciled in France remains, as a rule, liable to the IFI on their taxable real estate located in France and outside France, where its net taxable value exceeds €1.3 million.

Monaco, for its part, levies no wealth tax.

Exit tax

The French tax authorities’ published guidance states that a French national who moves their domicile to Monaco while remaining taxable in France under the treaty is not within the scope of the exit tax by reason of that move alone, since they continue to be taxed as a person domiciled in France.

Income tax

A person of foreign nationality who effectively and genuinely establishes their residence in Monaco is, as a rule, not subject to any Monegasque income tax.

They may nevertheless remain taxable in other States on certain income, for example:

• income from a property located in France;
• remuneration for an activity carried on in France;
• a French real estate capital gain;
• dividends or other income subject to withholding tax in their State of source.

The absence of tax in Monaco therefore does not neutralise the tax rules of the States in which the income has its source.

Real estate wealth tax (IFI)

A Monaco resident who is not treated as a French tax resident is liable to the French IFI only on their real estate assets and rights located in France, held directly or indirectly, if the €1.3 million threshold is exceeded.

There is no Monegasque wealth tax.

Monegasque taxation

Monegasque gift and inheritance duties concern assets located in Monaco or having their situs there. The inheritance tax rates published by the Monegasque administration include:

• 0% between spouses and in the direct line;
• 8% between brothers and sisters;
• 10% between uncles or aunts and nephews or nieces;
• 13% between other collateral relatives;
• 16% between unrelated persons.

Interaction with France

France and Monaco concluded a specific treaty on successions on 1 April 1950. It does not cover lifetime gifts.

For successions within its scope:

• real estate is, as a rule, taxable in the State where it is located;
• shares, company interests and other intangible assets are, as a rule, taxable in the State of the deceased’s domicile within the meaning of the treaty;
• a French national is treated as domiciled in Monaco for the purposes of this succession treaty only if they had been habitually resident there for at least five years on the date of death.

For gifts, French and Monegasque domestic rules must be applied, since the 1950 succession treaty does not cover them. The residence of the donor and of the recipient, their residence history and the location of the assets must therefore be checked.