Relocation tax guideMoving to Monaco: Taxes for Expats 2026
Monaco levies no personal income tax on its residents - and no capital gains tax and no wealth tax - the exception being French nationals, who remain liable to French income tax under a 1963 treaty. Inheritance tax runs from 0% in the direct line to 16% for unrelated heirs, and French VAT (20%) applies. Becoming resident requires a residence card backed by accommodation and means.
Monaco's draw is simple and almost unique in Europe: residents pay no personal income tax. The catch is the French-national exception and a residency process that demands real presence and proof of means. This guide explains who is taxed, how inheritance works, and how to become a Monaco resident. (Monaco is outside PwC's Worldwide Tax Summaries, so figures here are drawn from reputable specialist sources, cited below.)
Monaco: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 25%Profits tax applies only to companies earning over 25% of turnover outside Monaco; purely domestic activity is untaxed | Savills Monaco (taxation overview)as of 2026-06-23 |
| Top personal income tax | 0%No personal income tax for residents (French nationals remain liable to French income tax under the 1963 treaty) | Savills Monaco (taxation overview)as of 2026-06-23 |
| VAT / GST (standard) | 20%French VAT applies (Monaco is within the French VAT territory) | Savills Monaco (taxation overview)as of 2026-06-23 |
| Capital gains | No CGTNo capital gains tax on individuals | Savills Monaco (taxation overview)as of 2026-06-23 |
| Inheritance / wealth tax | 0-16%Direct line (spouse and children) exempt; siblings 8% up to unrelated 16% | Savills Monaco (taxation overview)as of 2026-06-23 |
When you become a tax resident
Monaco tax residency follows residence: you must obtain a residence card (carte de sejour), which requires proof of accommodation in Monaco and sufficient financial means (often via a local bank deposit), and you are expected to genuinely live there. There is no personal income tax to assess - the residence card is the gateway to the no-income-tax status, save for French nationals.
Source: Monaco Government - Welcome Office (residency) (as of 2026-06-24).
No income tax - with one exception
Monaco has not levied personal income tax on residents since 1869, and there is no capital gains tax and no wealth tax on individuals. The one exception is French nationals: under a 1963 bilateral treaty, French citizens resident in Monaco remain subject to French income tax as if they lived in France. Everyone else benefits from the no-income-tax status once resident.
Businesses are not entirely tax-free: a profits tax of 25% applies to companies that earn more than a quarter of their turnover outside Monaco, while purely local activity is untaxed. French VAT at 20% applies, since Monaco sits within the French VAT territory.
Becoming a Monaco resident
Residency is gated by the residence card, which requires somewhere to live in Monaco (owned or rented) and evidence of sufficient means - typically demonstrated through a substantial deposit with a Monaco bank. The process expects genuine residence, not a paper address. Inheritance tax is charged by relationship: 0% between spouses and in the direct line, rising through 8% for siblings to 16% for unrelated heirs.
Before you move: what to weigh
- French nationals do not get the no-income-tax benefit - they remain liable to French income tax under the 1963 treaty.
- The residence card requires real accommodation in Monaco and proof of means (often a bank deposit); it is not a paper exercise.
- There is no income, capital gains, or wealth tax, but inheritance tax runs 0% (direct line) to 16% (unrelated).
- US citizens remain taxable by the US on worldwide income wherever they live; confirm filing obligations.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to Monaco.
Does Monaco have income tax?
No - Monaco has levied no personal income tax on residents since 1869, and there is no capital gains tax or wealth tax on individuals. The exception is French nationals, who remain subject to French income tax under a 1963 treaty. French VAT at 20% applies, and a profits tax can apply to some companies.
Do French citizens pay tax in Monaco?
Yes. Under a 1963 bilateral treaty between France and Monaco, French nationals resident in Monaco remain liable to French income tax as though resident in France. The no-income-tax benefit that other Monaco residents enjoy does not extend to French citizens.
How do you become a Monaco tax resident?
By obtaining a Monaco residence card, which requires accommodation in Monaco (owned or rented) and proof of sufficient financial means, often shown through a deposit with a local bank, plus genuine residence. The card is the gateway to Monaco's no-income-tax status - save for French nationals.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Monaco as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.