Taxes That Do Not Apply in Monaco
For residents of all nationalities except French nationals. Applies from the date of establishing genuine Monaco residency.
Taxes That Do Apply in Monaco
Monaco is not entirely tax-free. The following levies apply to residents and/or property owners.
Registration Duty
Paid once at property purchase. Applies to all buyers regardless of nationality or residency.
VAT on New-Build Properties
Applies to the first sale of new-build properties (VEFA — vente en l'état futur d'achèvement). This replaces, rather than adds to, the registration duty.
Inheritance Tax (Non-Direct Heirs)
Monaco inheritance tax applies to assets passing to non-direct family members (siblings, unrelated beneficiaries). Direct descendants, spouses, and registered partners pay zero.
Business Tax (Patente)
Businesses operating in Monaco pay a patente (business licence fee) and standard corporate tax of 33.33% on Monaco-sourced profits. Businesses deriving 75%+ of revenues from outside Monaco may qualify for an exemption.
International Tax Comparison
Approximate rates for individual residents as of 2025. Rates vary by income level, asset value, and canton/region.
| Tax type | Monaco | UK | France | Switzerland | UAE |
|---|---|---|---|---|---|
| Personal income tax | 0% | 20–45% | 11–45% | 0–50% | 0% |
| Capital gains tax | 0% | 10–28% | 19–36% | 0% | 0% |
| Wealth tax | 0% | 0% | 1.5% (IFI) | 0–1% | 0% |
| Inheritance tax (direct heirs) | 0% | 40% | 5–45% | 0–50% | 0% |
| Annual property tax | 0% | Council tax | ≈0.5–1.5% | Cantonal varies | 0% |
| Registration duty (purchase) | 4.5% | 0–12% SDLT | 5.8% | Cantonal varies | 4% |
This table is illustrative and should not be relied upon as tax advice. Consult a qualified tax adviser in each jurisdiction.
The French National Exception
French nationals who move to Monaco after 13 October 1962 remain subject to French income tax on worldwide income.
This bilateral treaty was introduced in 1963 specifically to prevent French citizens from using Monaco as a tax shelter.
The exception: French citizens who were Monaco residents continuously before 13 October 1962 (and their legitimate descendants) are exempt.
In practice, no recently relocated French national benefits from Monaco's zero-income-tax regime.
All other nationalities — British, American, Italian, Russian, Swiss, and others — benefit fully from Monaco's fiscal regime from the date residency is established.
French nationals considering Monaco residency should obtain specialist cross-border tax advice before relocating. The bilateral convention is unambiguous and enforced.
How to Benefit from Monaco's Tax Regime
Four steps are required to establish genuine Monaco tax residency.
Obtain Monaco Residency
Apply for and receive a Monaco carte de séjour temporaire from the Direction de la Sûreté Publique. The residency card is the legal foundation. Property ownership or rental alone does not create Monaco tax residency.
Residency requirements guideEstablish Physical Presence
Spend the majority of your year in Monaco. Most advisors recommend a minimum of 183 days in Monaco to support genuine residency. Maintain local utility accounts, banking activity, and social engagements to evidence this.
Formally Cease Prior Tax Residency
Notify your prior tax jurisdiction of your change of residency. In most countries this involves filing a final tax return for the year of departure, deregistering from local tax authorities, and following any exit tax rules that apply in your home jurisdiction.
Maintain Residency and Presence
Monaco's zero-tax status only applies while you are genuinely resident. Cardholders must renew their residence card, demonstrate continued presence, and avoid prolonged absences that could trigger tax residency in another jurisdiction.
Frequently Asked Questions
Does Monaco have income tax?
Monaco does not levy personal income tax on individuals. This has been the case since 1869. Monaco residents pay zero income tax on employment income, investment income, rental income, dividends, and all other forms of personal income, regardless of where in the world that income is sourced. The sole exception applies to French nationals, who remain subject to French income tax under the 1963 France-Monaco bilateral convention.
Do Monaco residents pay capital gains tax?
No. Monaco does not levy capital gains tax on individuals. Gains from property sales, share sales, cryptocurrency disposals, and all other capital events are not taxed in Monaco. This applies to residents of all nationalities except French nationals (who remain subject to French CGT under the bilateral convention).
Is there a wealth tax in Monaco?
No. Monaco levies no annual wealth tax on individuals. This contrasts with France, which applies the impôt sur la fortune immobilière (IFI) at 1.5% on real estate wealth above €1.3 million. Monaco residents of non-French nationality have no equivalent levy.
What inheritance tax applies in Monaco?
Monaco levies no inheritance tax on assets passing to direct family members — spouses, civil partners, children, grandchildren, and direct ascendants (parents, grandparents) pay zero. Inheritance tax applies at 8% to 16% for more distant relatives and unrelated beneficiaries. This is considerably lower than French inheritance tax rates, which can reach 45% for non-direct family.
Do French nationals benefit from Monaco's tax regime?
No, not for income tax. Under the 1963 France-Monaco bilateral convention, French nationals who relocate to Monaco after 13 October 1962 remain subject to French income tax on worldwide income. Only French citizens who were Monaco residents continuously before that date (and their descendants) are exempt. All other nationalities benefit fully from Monaco's zero income tax from the moment of residency.
When do Monaco residents pay tax on property?
The only property-related tax in Monaco is the 4.5% registration duty paid once at purchase. There is no annual property tax, no land tax, and no council tax equivalent. Monaco property owners who are residents pay nothing annually on the value of their property.
What is Monaco's tax regime for businesses?
Businesses operating in Monaco pay a patente (business licence fee) and standard corporate tax of 33.33% on Monaco-sourced profits. However, companies that generate 75% or more of their revenues from outside Monaco may qualify for a reduced or zero rate on the offshore portion of their profits. Monaco is not on any EU or OECD blacklist; it complies with international tax standards.
How does Monaco compare to Switzerland for tax?
For individuals, Monaco is typically more favourable than Switzerland. Switzerland has no federal income tax on capital gains from private investments, but cantons levy income tax ranging from 0% to 50% depending on location. Switzerland also has cantonal wealth taxes. Monaco offers zero income tax, zero capital gains tax, and zero wealth tax for all non-French nationals.
Do you need to be a Monaco resident to benefit from Monaco's tax regime?
Yes. You must hold a valid Monaco residence card and be genuinely resident in Monaco to benefit from the zero-tax regime. Simply owning property in Monaco while living elsewhere does not establish Monaco tax residency. Tax residency follows actual residency status.