Taxation in Monaco
In the Principality of Monaco, there is no income tax (under certain conditions), no wealth tax, no property tax, and no housing tax.
Monégasque nationals and Monaco residents are not subject to income tax, except for French nationals governed by the 1963 Franco-Monegasque bilateral agreement and American citizens. However, the exemption from income tax for individuals only applies to activities or individuals who are genuinely and effectively established on the territory of the Principality, with a minimum requirement of 6 months of residence per year.
Additionally, sales of real estate are generally not taxed and are not subject to capital gains tax (under certain conditions).
Inheritance or gift taxes apply to assets located on the territory of the Principality or those with a tax base there, regardless of the domicile, residence, or nationality of the deceased or donor. These taxes are governed by the Monegasque Civil Code (articles 602 to 760). The tax rate depends on the degree of kinship between the deceased and the heir:
- In direct line (parents-children) or between spouses: 0%
- Between siblings: 8%
- Between uncles, aunts, nephews, and nieces: 10%
- Between other relatives than siblings, uncles, aunts, nephews, or nieces: 13%
- Between non-relatives: 16%
Law No. 1.448 of June 28, 2017, regarding private international law, allows for the choice of the applicable inheritance law (Monegasque or the resident's national law). By default, this law considers the domicile of the deceased at the time of their death. Therefore, any Monegasque resident who owns assets both in Monaco and abroad will, in principle, have their estate subject exclusively to Monegasque law.
