If you want to invest in real estate in Monaco, become a Monegasque resident or set up a business on the Rocher, you must be aware of the tax system in Monaco. In this article you will find all the information you need to know about taxation in Monaco.
Taxation on peopleDid you ever dreamed of being exempt from income taxes? Monaco did it! Exemption from income tax was passed in 1869 on the Rocher. It has been in place ever since, which helps make Monaco so attractive. In practice, if you live in the Principality, you do not pay income tax. Unfortunately for you, this will not be the case if you are of French nationality. Indeed, following the signature of a bilateral agreement in 1963 between France and Monaco, French nationals who settled on the Rocher after January 1957 must pay income tax in France. In addition, in the tax system in Monaco, there is no taxation on real estate. You will therefore automatically benefit from the property tax and housing tax exemptions. Finally, there is no wealth tax. Inheritance tax applies to all property located in Monaco, regardless of the nationality and place of tax residence of the deceased (or the donor). The level of taxation applied depends solely on the family situation between the deceased and his heir:
- 0 % if direct filiation (parents-children, spouse),
- 8 % between brothers and sisters,
- 10 % between uncles, aunts, nephews and nieces,
- 13 % for any other family relationship,
- 16 % between non-relatives.