Monaco taxes make the country one of the world’s most tax-friendly places. Residents pay no personal income, capital gains, or wealth taxes, which attracts many wealthy individuals. The Principality charges a standard 20% VAT, and corporate tax only applies to companies earning more than 25% of their profits from outside Monaco. For inheritance tax, transfers to spouses or children are tax-free, but other relatives or unrelated heirs will need to pay 8% to 16%.
This guide will explain everything about taxes in Monaco, from the tax residency rules, personal income tax to the inheritance taxes and taxes for foreigners in the Principality of Monaco.
Monaco taxes: Key Takeaways
How do taxes in Monaco work?
Monaco’s tax system is managed by the Department of Tax Services under the Ministry of Finance and Economy. Since 1869, the Principality has followed a policy of very low direct taxes, meaning residents do not pay personal income tax, wealth tax, or capital gains tax. However, Monaco has a customs union with France, so it applies the French VAT system and shares certain customs revenues.
Tax residency rules in Monaco
To qualify as a tax resident, you need to have a Monaco residency permit, also referred to as carte de séjour, and live in Monaco for at least 183 days per year or longer than in any other country. Applicants can apply for a residency in the Principality through a trusted Monaco Immigration Agency like Global Citizen Solutions.
- One important exception applies to French citizens. Under the 1963 bilateral tax agreement, French nationals living in Monaco are still treated as tax residents of France and are still subject to French income tax unless they can prove they lived in Monaco before 1962.
Personal Income Tax in Monaco
Monaco stands out as one of the most tax-friendly countries because it does not charge personal income tax on its residents. But the main exception is still the same for French citizens. Under the 1963 bilateral agreement, French nationals who move to Monaco are treated as if they were still living in France. This means they will be subject to French income tax unless they can prove they were residents of Monaco before October 13, 1962.
Social Security Contributions in Monaco
Although there is no income tax, residents who are employed or self-employed in Monaco still need to pay social security contributions. The country has strict contribution requirements for both employers and employees. These contributions include funding health insurance, pensions, family benefits, and workplace insurance.
| Category | Employer Rate | Employee Rate | Self-Employed Rate | Notes |
|---|---|---|---|---|
| Sickness & Family (CCSS/CAMTI) | ~15.05% | — | €1,101 per quarter | Self-employed pay a fixed flat fee regardless of income level. |
| Basic Pension (CAR/CARTI) | ~8.33% | ~6.85% | 4 categories | Self-employed choose a category (1 to 4) to determine pension “points.” |
| Unemployment Insurance | 4.00% | 2.40% | N/A | Self-employed are generally not eligible for unemployment benefits. |
| Workplace Accident | ~1% – 3% | — | Optional | Self-employed can opt in for private or voluntary coverage. |
| Estimated Total | ~28% – 40%+ | ~10% – 14% | Varies |
Corporate Income Tax in Monaco
Monaco uses a territorial tax system, which means companies are only taxed on certain types of business activity. Corporate income tax, also called Impôt sur les Bénéfices (ISB), does not apply to most companies operating in the Principality.
A business will only need to pay this tax in two main situations:
- First, if the company carries out industrial or commercial activities and more than 25% of its total revenue comes from outside Monaco.
- Second, if the company earns income from intellectual property, such as licensing or selling patents, trademarks, manufacturing processes, or artistic copyrights.
If a business does not meet these conditions, it is exempt from corporate income tax in Monaco. The country also does not charge withholding tax, so dividends, interest, and royalties paid to non-residents are taxed at 0%.
Monaco VAT – Value Added Tax
Monaco has a customs union with France, which means its Value Added Tax (VAT) system is almost the same as France’s. The standard rate is 20% for most industrial and commercial goods but some reduced rates do apply.
| Rate type | Rate | Where the rate applies |
|---|---|---|
| Standard Rate | 20% | Most industrial and commercial goods and services |
| Reduced Rate | 10% | Certain prepared foods, medicines not reimbursed by social security, and some transportation services |
| Reduced Rate | 5.5% | Most food products, books, and essential utilities such as water and electricity |
| Super-Reduced | 2.1% | Reimbursable medicines and certain press publications |
Gift and Inheritance Tax in Monaco
Gift and inheritance taxes in the Principality of Monaco only apply to assets that are in the country. Therefore, Monaco does not tax a person’s worldwide estate. However, the tax applies to both residents and non-residents if they own assets in Monaco, such as property, bank accounts, or securities.
| Relationship to Donor / Deceased | Tax Rate |
|---|---|
| Spouses and Direct Line (Parents, Children, Grandchildren) | 0% |
| Siblings | 8% |
| Uncles, Aunts, Nephews, and Nieces | 10% |
| Other Relatives | 13% |
| Non-Relatives / Unrelated Parties | 16% |
Property and Real Estate Taxes in Monaco
Monaco’s real estate taxes are different from most countries because you mainly pay taxes only when you buy a property, not while you own it. Unlike other countries, there are no annual property taxes, council taxes, or wealth taxes on real estate in Monaco.
When buying property, the tax you pay depends on the age of the building and whether you are buying as an individual or through a company.
| Property Type / Buyer | Registration duty | Notary & admin fees | Total acquisition cost |
|---|---|---|---|
| Resale (Old) – Individual / SCP | 4.75% | ~1.5% | ~6.25% |
| New Build / Off-plan (VEFA) | 1.0% | ~1.5% | ~2.5% (VAT usually included in price) |
| Resale – Foreign / Non-Transparent Entity | 7.5% – 10% | ~1.5% | ~9.0% – 11.5% |
| Property Dealer (Professional) | Exempt* | ~1.5% | ~1.5% |
Stamp Duty Taxes in Monaco
Monaco splits its stamp duty into two main types: Fiscal Stamps and Registration Duties.
Fiscal Stamps (Timbre fiscal)
This tax applies to documents used for legal or official purposes, or as proof in court. Most standard documents are charged at a fixed fee of now cost €50. This includes:
- Certificates of residence or domicile
- Work permits and family record booklets
- Filing a change of beneficial owner for a company
For some legal documents, the tax depends on the size of the paper, and for that there’s a format-based fee of €5 to €20 per sheet.
Proportional registration duties
Proportional registration duties are taxes charged on bigger transactions, which are calculated as a percentage of the transaction’s value.
| Transaction Type | Rate | Notes |
|---|---|---|
| Tenancy Agreements | 1.0% | Calculated on the annual rent plus service charges |
| Transfer of Business | 7.5% | Applied to the sale of a business or customer list |
| Sale of Movable Property | 5.0% | Reduced to 2% for certain public auctions |
| Mortgage Agreements | 3.0% | Applied to the “engrossed copy” (official legal copy) |
| Capital Increase | €50 | Flat fee for companies increasing their share capital |
Taxes for Non-Resident Foreigners in Monaco
If you own property in Monaco but do not live there, you have to pay certain local taxes on assets in the country.
- Buying Property: If you buy property in Monaco, you pay a registration tax of 4.75% for individuals or 10% for foreign companies.
- Rental income: Renting out your property is tax-free for individuals, but the tenant has to pay a 1% lease duty on the yearly rent.
- Inheritance: If you own property or bank accounts in Monaco, they are subject to inheritance tax when you pass away. The rate is 0% for spouses and children and can be up to 16% for unrelated heirs.
Is Monaco considered a tax haven?
Whether Monaco is a tax haven is not a definitive answer, but it is still seen as a strategic tax planning destination, but international rules and transparency laws have changed its official status. Legally, Monaco is no longer considered a non-cooperative tax haven.
- OECD & EU white lists: Monaco is not on the EU blacklist or the OECD list of tax havens. This is because it has signed over 30 Tax Information Exchange Agreements (TIEAs) and agreed to the Automatic Exchange of Information (AEOI).
- FATF grey list: Monaco is still on the Financial Action Task Force’s Grey List for increased monitoring, not because of taxes, but due to concerns about anti-money laundering (AML) and counter-terrorism measures. The government is working to leave this list by 2026.
- Transparency: From January 1, 2026, a new EU protocol requires reporting of digital assets and e-money, which will end traditional banking secrecy for EU residents.
How Can Global Citizen Solutions Help You?
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We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
