Monaco

Personal and business taxation in Monaco

Documentary position as at 26 September 2026. The reference points below are drawn from the consolidated texts published on Legimonaco, the *Journal de Monaco*, the official information sheets of the Monegasque administration and the treaty texts published by the DGFiP. Financial years and transactions of 2026 are distinguished from texts that have merely been tabled, and the French tax assessment of a taxpayer is dealt with only to the extent that the Franco-Monegasque conventions govern it.

1. Identifying the territory, taxpayer and year

1. The Principality does not apply a general income tax scale to individuals. The official information sheets of the Tax Services Department (*Direction des services fiscaux*) trace this absence to an ordinance of 1869 and present the profits tax (*impôt sur les bénéfices*, ISB) on industrial and commercial activities as the only direct tax levied in the Principality. That presentation is not sufficient to conclude that there is no tax liability: the taxpayer's nationality, the nature and location of the activity, the situs of the assets and the law of the third State concerned must still be identified. S10S11

2. Three bodies of rules overlap. The first is domestic: Sovereign Ordinance No. 3.152 of 19 March 1964 for the ISB, the Code of turnover taxes (*Code des taxes sur le chiffre d’affaires*) for VAT, and the ordinance of 1828 and the laws of 1936 and 1953 for registration. The second is Franco-Monegasque: the tax convention and the customs convention of 18 May 1963, and the inheritance convention of 1 April 1950. The third is multilateral or bilateral: mutual administrative assistance, automatic exchange of information and the double taxation conventions concluded by Monaco. S08S13S42S23S16S01S12S07S31

3. The relevant date differs according to the tax. The ISB rate depends on the date on which the financial year opens; the registration tariffs amended by Law No. 1.548 apply to deeds presented for registration on or after 1 October 2023; the convention with the United Arab Emirates, in force for Monaco since 12 June 2026, takes effect only from 1 January of the following calendar year. A single transaction carried out in 2026 may therefore be governed by different date rules depending on the tax under consideration. S08S18S37S38

4. The administrative information sheets and the consolidated texts are not always synchronised. As at 26 September 2026, the official information sheet on registration duties still refers to a fixed duty of €10 and to real estate rates of 4.5%, 6.5% and 7.5%, whereas the consolidated texts incorporate Law No. 1.548 of 6 July 2023, which raises the fixed duty to €50 and the rate applicable to individuals and transparent companies to 4.75%. This factsheet follows the consolidated text and flags the discrepancy. S21S16S18S19

2. Individual residence, arrival and departure

5. Monegasque residence is first and foremost a matter of immigration law. Sovereign Ordinance No. 3.153 of 19 March 1964 requires a foreign national who stays for more than three months in Monaco or settles there to hold the documents permitting entry into and residence in France; a foreign national aged over 16 must apply for a residence permit (*carte de séjour*) within eight days of arrival, subject to the exemptions provided for. S27

6. The information sheets of the Public Security Department (*Direction de la sûreté publique*) describe four categories of permit: temporary, valid for one year and obtainable without any period of prior residence; ordinary, valid for three years after three years of residence; privileged, valid for ten years after ten years of actual residence, with a possible reduction of the required period in particular cases; and spouse of a Monegasque national, valid for five years after one year of residence. The issue fee for a first temporary permit is stated as €80. S28

7. The application requires evidence of housing in Monaco suited to the household, of sufficient resources and of the applicant's good character. The housing may be owned directly or through a company, rented under a registered lease or made available by a relative in the cases specified. The resources may derive from a salary, from professional income, from savings certified by a Monegasque institution or from family support. Nationals of States not listed in the “European Economic Area and third countries” tab of the official information sheet, which includes in particular Andorra and the Vatican City State, must in addition obtain an establishment visa or a transfer of residence, depending on their situation. S29

8. The residence permit does not, by itself, constitute a certificate of tax residence. The certificate of residence “for tax formalities” is issued to the holder of a valid permit who proves a stay of more than 183 days in Monaco, the principal centre of his or her activities or his or her longest stay of the year in Monaco. Persons established for less than six months obtain it only on proof of a derogation. The certificate is valid for one year and is subject to an issue fee of €600. S30

9. The criteria for this certificate are administrative criteria for its issue. They do not settle tax residence with regard to another State, which applies its own law and, where relevant, the applicable convention. The Monegasque administration itself stresses that the absence of income tax concerns only activities or persons actually established in the Principality and does not affect the rules laid down by other States. S30S11

10. On departure, the foreign national must return his or her residence permit eight days before leaving the Principality; the Public Security Department issues a certificate evidencing the period of residence. The Monegasque texts consulted do not introduce any taxation of unrealised capital gains on departure for individuals. The consequences of a departure to France or of an arrival from France are therefore governed mainly by French law and the 1963 convention. S27S28S10

3. No income tax and the exception for French nationals

11. Monegasque nationals and residents of the Principality are not subject to income tax, with the exception of French nationals governed by the bilateral convention of 1963. The Monegasque administration specifies that this position applies only to persons and activities genuinely established in the Principality. Foreign-source income therefore remains exposed to the rules of the source State or of the State claiming residence. S10S11S25

12. Article 7, paragraph 1, of the tax convention of 18 May 1963 subjects to income tax in France, under the same conditions as if they had their domicile or residence in France, persons of French nationality who transfer their domicile or residence to Monaco, or who cannot prove five years of habitual residence in Monaco as at 13 October 1962. The rule is therefore based on nationality and on a historical date, not on the length of the current stay. S01S04

13. The text of Article 7 excludes two categories from this assimilation: persons forming part of or dependent on the Sovereign House, and officials, agents and employees of the Principality's public services who had established their habitual residence in Monaco before 13 October 1962. The exchange of letters of 26 May 2003 (point II, “Scope of Articles 7 and 20”) further specifies that Article 7 creates no right for France to tax other than that arising under its domestic legislation, subject to conditions of habitual and continuous residence in Monaco, for a French national married to a Monegasque national or to a French national outside the scope of Article 7-1, a French woman married before 1 January 1986 to a national of another State, the surviving spouse and the minor child in the situations described. A French national arriving today can no longer satisfy the condition of five years as at 13 October 1962; his or her situation must therefore be examined in the light of these exceptions. S01S05S04

14. Article 7, paragraph 3, introduced by the amending agreement (*avenant*) of 26 May 2003, subjects to “wealth tax” (*impôt sur la fortune*), with effect from 1 January 2002 and under the same conditions as if they were resident in France, individuals of French nationality who have transferred their domicile or residence to Monaco on or after 1 January 1989. On the basis of the sources consulted alone, this factsheet does not determine how the French administration applies this provision to the real estate wealth tax (IFI) which replaced the ISF. S01S02S04

15. The protocol of signature specifies that individuals who, although resident in Monaco, are deemed to have their tax domicile in France under Article 7 are regarded as domiciled in France for the purposes of Articles 21 and 22. The spontaneous exchanges of information organised by those articles therefore cover them directly. S04S03

16. Where a person domiciled in France, or a French national covered by Article 7, is subject to the ISB in respect of profits made in Monaco, the Monegasque tax is treated as a credit deductible from the French income tax relating to those profits. Article 14 furthermore guarantees to the nationals of each State, in the territory of the other, the same allowances in respect of family status and family responsibilities as nationals. S01

17. Article 22, paragraph 3, provided in 1963 for a review of the position of French nationals holding a certificate of domicile, the validity of which was limited to three years and which could be withdrawn if habitual residence ceased. This historical mechanism shows that proof of actual residence lies at the heart of the treaty arrangements. It does not replace the current certificate of residence for tax purposes, which is subject to its own conditions of issue. S01S30

18. For a national of a State other than France, the absence of Monegasque income tax prejudges neither taxation in the State of nationality where that State taxes on that basis, nor taxation of the income in the source State. The verification must therefore be carried out, State by State, on the foreign domestic law and on the existence of a convention in force with Monaco. S11

4. Special regimes: no inbound expatriate regime

19. In the absence of a general income tax, the texts and information sheets consulted provide for no inbound expatriate regime comparable to those of States that tax the worldwide income of their residents. The advantage of relocation results from the absence of tax, subject to the French exception and to foreign rules, and not from an optional status to be applied for from the tax administration. S10S11

20. The tax incentives identified concern businesses subject to the ISB. The official information sheet describes relief for the creation of businesses carrying on a genuinely new activity: exemption for the first two years, then taxation on 25%, 50% and 75% of reduced profits in the third, fourth and fifth years respectively, before full taxation from the sixth year. It also mentions a research tax credit, without setting out its conditions on the page consulted. S09

21. The cohabitation agreement (*contrat de vie commune*) introduced by Law No. 1.481 of 17 December 2019 has a specific tax effect: a rate of 4% for transfers on death and lifetime transfers without consideration between partners. For gifts, this rate is withdrawn where the agreement is terminated less than ten years after it was entered into for a reason other than the partners' marriage or the death of one of them; the rate applicable to unrelated persons then applies retroactively. S24S16S26

5. Non-residents, Monegasque-source income and withholding

22. In the absence of a general income tax, a non-resident individual is not taxed in Monaco on Monegasque-source salaries, dividends or interest under any such tax. The direct tax that may apply is the ISB, which depends on the nature of the activity carried on in Monaco and on the location of turnover, not on the residence of the operator. S10S08

23. The texts consulted do not introduce any Monegasque withholding tax on dividends or interest paid to non-residents. Reporting obligations do, however, exist: the 1963 convention provides for the annual transmission to the French administration of individual statements of income from securities, receivables, deposits and guarantees collected in Monaco by persons domiciled in France. The absence of any identified withholding must not be confused with an absence of taxation in the State of residence of the recipient. S01S04

24. The official information sheet on the taxation of savings, updated on 23 February 2023, still describes the withholding tax applied since 1 July 2005 under the 2004 agreement with the European Community. The official FAQ on automatic exchange states, however, that the protocol signed on 12 July 2016, which entered into force on 1 January 2017, replaces and repeals “the 2005 agreement” on the taxation of savings (the FAQ's wording designating the agreement signed on 7 December 2004) and aligns it with the Common Reporting Standard. The “savings” withholding must therefore be read as a historical regime. S45S33S35

25. Copyright royalties and patent royalties received by an individual remain outside the scope of the ISB, whereas the same income received by a company falls within it. The classification of the recipient, individual or company, therefore determines liability in Monaco. S09S08

6. Companies: the profits tax (ISB)

26. The ISB originates in the undertaking given by the Princely Government in the 1963 convention to introduce a tax on profits made from 1 January 1963, assessed and collected under the same conditions as the French corporate profits tax, subject to adaptations. Assessment, collection and disputes are the responsibility of the Monegasque administration, and the proceeds accrue to the Princely Treasury. S01S08

27. Article 1 of Ordinance No. 3.152 covers businesses, whatever their form, that carry on an industrial or commercial activity in Monaco where their turnover derives, “to the extent of at least 25%”, from transactions carried out, directly or through an intermediary, outside Monegasque territory. The official information sheet summarises the criterion as “more than 25%”: the borderline case of external turnover equal to 25% must therefore be read on the basis of the text. S08S09

28. Also taxable are companies, whatever their form, whose activity in Monaco consists of receiving income from the sale or licensing of patents, trade marks, manufacturing processes or formulae, or income from literary or artistic property rights. For these companies, the 25% threshold is not a condition of the text. S08S01

29. Article 3 defines turnover realised outside Monaco. It includes sales made outside the territory or to destinations abroad, even where delivery takes place in Monaco, and other transactions where the service rendered, the right transferred or the item leased is used or exploited outside Monaco. Sales made in Monaco on the spot, at retail and for cash are never regarded as made abroad. Article 2 specifies that an intermediary includes, in particular, a person who delivers products manufactured in Monaco, in their unaltered state, outside the Principality. S08

30. Excluded from the base are profits or losses attributable to permanent establishments abroad, to complete cycles of operations habitually carried out outside Monaco and to transactions carried out outside Monaco by dependent agents who habitually have authority to conclude contracts or hold a stock of goods. Social or philanthropic bodies are exempt to the extent that their transactions are exempt from turnover taxes. S08

31. The official information sheet specifies that legal form is neutral: the nature of the activity and the location of transactions determine liability. A sole proprietorship may therefore be taxable, the tax then being assessed in the name of the operator. Administrative offices are liable and, as a general rule, taxed at a reduced rate on a flat-rate base corresponding to the funding required for their operation. S09S08

32. The rate is laid down by Article 21 of the ordinance. The following table sets out the changes provided for by the consolidated text and confirmed by the official information sheet. S08S09

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33. Taxable profit is the net profit resulting from all transactions, including disposals of assets. The remuneration of the manager or of the highest-paid executive is deductible only if it corresponds to actual work and is not excessive in the light of international practice, in particular in the European Union. A scale by turnover bands caps this deduction for businesses whose turnover does not exceed €7 million of sales or €3.5 million of services, the official information sheet referring respectively to “other businesses and companies” and to service providers; the deductible remuneration of other managers or executives may not exceed 75% of the amount so allowed. S08S01S09

34. Payments made to persons resident in Monaco by way of fees, royalties, brokerage or commissions are deductible only where there is no relationship of dependence with the recipient and on proof that the commitment is genuine. Article 14 of the ordinance furthermore allows profits transferred to associated foreign enterprises through abnormal conditions to be added back. S01S08

35. For financial years opening on or after 1 January 2019, net financial expenses are deductible up to the higher of €3 million or 30% of taxable profit increased by net financial expenses, allowable depreciation and provisions, and gains and losses on disposals. Non-deducted expenses may be carried forward, and unused capacity may be carried forward over five financial years. A separate limit, of €1 million or 10% of profit, applies to debts owed to associated enterprises where their average amount exceeds one and a half times equity; the fraction thus not deducted may be carried forward only up to one third of its amount, and no unused deduction capacity may be carried forward under this regime. S08

36. Losses may be carried forward without time limit, but their annual set-off is capped at €1 million plus 50% of the profit exceeding that amount. A capital company may elect to carry the loss back against the undistributed profit of the preceding financial year, up to the lower of that profit and €1 million; the resulting claim is repayable at the end of five years if it has not been set off. S08

37. Capital gains on disposals of fixed assets in the course of operations may be excluded from profit if the business undertakes to reinvest, within three years from the close of the financial year, an amount equal to those gains plus the cost price of the assets disposed of. The text excludes certain uses, including the purchase of gold bars and gold coins. S08S09

38. The parent-subsidiary regime of Article 15 benefits a Monegasque company limited by shares holding at least 20% of the capital of a Monegasque or foreign company, in the form of SARL shares or registered shares held in accordance with the holding-period conditions of the text. Net income is deducted from profit, less a share of costs and expenses of 20%, 10% or 5% according to whether the holding is below 35%, between 35% and 50%, or at least 50%. S08

39. A business receiving foreign-source income that has borne tax in the source State may, on proof, credit that tax against the ISB due on the same income, the amount of the foreign tax first being added back to gross receipts. This credit is not available for income from subsidiaries deducted under the parent-subsidiary regime. S08

40. The tax return is filed within three months of the close of the financial year. The tax is payable in four instalments, in February, May, August and November, each equal to one fifth of the tax calculated on the last closed financial year; the balance is paid no later than the expiry of the filing deadline. Late payment gives rise to a fine of 3% within the month, increased by 1% for each additional month, and failure to file within the deadline to a fine of €15 to €75. S08

41. On 28 July 2026 Monaco tabled Bill No. 1.129 on the minimum taxation of multinational enterprise groups. The explanatory memorandum provides for a qualified domestic top-up tax applying to constituent entities located in Monaco of groups whose consolidated revenue is at least €750 million in at least two of the four preceding financial years, without introducing the IIR or the UTPR at this stage. As at 26 September 2026, this is a bill: no Monegasque top-up tax should be presented as in force on that basis alone. S40

42. For the same large groups, country-by-country reporting is already in place. The official BEPS information sheet states that Monaco undertook on 17 May 2016 to apply the BEPS minimum standards, signed the BEPS multilateral convention on 7 June 2017 and signed the multilateral competent authority agreement on the exchange of country-by-country reports on 2 November 2017, for groups whose consolidated revenue reaches €750 million. S36

7. VAT and the customs union with France

43. The customs convention of 18 May 1963 unites the French and Monegasque territories, including territorial waters, in a customs union: the French Customs Code and tariffs apply in Monaco, and there is only one customs line, on the seaward side. The official information sheet specifies that Monaco is incorporated into the customs territory of the Union while remaining a third State in relation to the European Union. S12S14

44. Article 15 of the 1963 tax convention provides that turnover taxes are applied in Monaco on the same bases and at the same rates as in France, and Article 17 organises the sharing of the proceeds between the two States. The Monegasque Code of turnover taxes incorporates these rules; its Article 51 sets the standard rate at 20%. The official information sheet indicates a reduced rate of 10% and a rate of 5.5% for basic necessities; the code also provides for a rate of 2.10% for certain transactions, in particular certain medicines and theatrical premieres. S01S13S14

45. Supplies of goods and services made for consideration by a taxable person acting as such are subject to VAT. Any person habitually carrying out economic transactions for payment is a taxable person. Certain normally exempt transactions may be taxed by option, in particular banking and financial transactions and lettings of unfurnished immovable property for business use. The intra-Community trade regime has applied since 1 January 1993. S13S14S11

46. Real estate VAT applies automatically to sales, by a taxable person acting as such, of building land and of buildings within five years of their completion. Sales of land other than building land and of buildings completed more than five years earlier fall outside its scope, unless the taxable vendor opts. The tax, at the rate of 20%, is payable by the vendor; the margin is the taxable amount in the cases specified by the official information sheet. Transactions not subject to VAT are normally subject to transfer duties. S15

47. The practical consequence is that a Monegasque company is, for VAT purposes, in a position very close to that of a French company, whereas it may be outside the scope of the ISB if its external turnover remains below the 25% threshold. The absence of ISB therefore never means the absence of VAT or exemption from the invoicing and reporting obligations specific to the latter tax. S08S13S14

8. Real estate: registration and transfer duties

48. There is neither property tax (*taxe foncière*) nor council tax (*taxe d’habitation*) in Monaco. Holding a property there is therefore not taxed annually by a local tax, but acquisitions, contributions, transfers of shares and changes of ultimate beneficial owner of entities holding real estate rights give rise to registration duties. S10S11S17

49. Law No. 580 of 29 July 1953 sets the proportional duties article by article. Since Law No. 1.548, applicable to deeds presented for registration on or after 1 October 2023, a transfer for consideration of immovable property to an individual or to a transparent Monegasque non-trading company (*société civile*) is subject to 4.75%. The same rate applies to a capital reduction of an entity allocating the real estate rights to its identified ultimate beneficial owners. S16S18S19

50. The same law added to Article 16 a rate of 10% for the transactions under Article 13 bis carried out for the benefit of a legal entity whose beneficial owners are neither individuals acting on their own account nor legal persons whose beneficial owners' identity is disclosed by an approved agent. The other transactions listed in Article 13 bis appear, in the consolidated text, under the rate of 7.50%. S16S19

51. The published figures do not all agree. The official information sheet on registration duties still refers to 6.5% as the rate for sales of immovable property, 4.5% for transparent persons and 7.5% in other cases; the Legimonaco news item on Law No. 1.548 refers to 9.50% for non-transparent companies. Before any deed, the rate must be confirmed with the notary or the Tax Services Department in the light of the exact status of the purchaser. S21S20S16

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52. Every legal entity holding real property rights in Monaco, wherever its registered office is located, must file each year, between 1 July and 30 September, a declaration of change or of no change of ultimate beneficial owner, through an approved agent established in Monaco. In the event of a change, the 4.75% duty is payable on the full market value of the property, and not in proportion to the interest transferred; it is paid between 1 October and 30 November following. S17S22

53. Exempt from this declaration are, in particular, Monegasque non-trading companies, other than those in the form of a public limited company or limited partnership, whose members are exclusively individuals acting on their own account and known to the administration, as well as approved listed companies. The duty is not payable where the change results from a gift or a devolution by operation of law to the spouse, ascendants or descendants in the direct line, from a transfer of shares in a non-trading company already taxed, or from the transfer of qualifying directors' shares within the limits provided for. S17

54. The penalties are heavy: a fine of €5,000 or €10,000 depending on the date of regularisation; a duty of 10% in the event of an inaccurate declaration or of a wrongly declared absence of change; a duty of 1.5% of market value where no approved agent has been appointed within the time limits. For an investor holding a property through a foreign company, these obligations weigh as heavily as the acquisition rate. S17

55. The letting of a property gives rise to a duty of 1%. Under Article 9 of Law No. 580, this duty is calculated on the aggregate rent for the years of the lease; for leases of three, six or nine years, it is payable only at the beginning of each three-year period, and for fixed-term leases it is payable in full on registration, except that, for a lease of more than three years and at the request of the parties, it may be split into equal payments per three-year period. The official information sheet presents, in simplified form, a duty “levied on the amount of the annual rent, plus service charges” and states that leases must be registered within three months. Mortgage registrations bear 0.65%. The transcription of a transfer subject to VAT bears 1%, whereas that of a transfer subject to proportional registration duty is subject to a fixed duty. Subject to its Articles 2 and 3, Law No. 842 exempts from half of the registration duties deeds that give rise to payment of VAT. S21S16S43

9. Assets and wealth

56. There is no wealth tax in Monaco. For a non-French resident, holding movable or immovable assets there therefore gives rise to no annual Monegasque tax; only deeds and transfers are taxed, under the conditions governing registration and inheritance duties. S10S11

57. The French exception also applies here: French nationals who have settled in Monaco since 1 January 1989 are, under Article 7, paragraph 3, of the convention, subject in France to wealth tax as if they were resident there, subject to the situations covered by the exchange of letters of 26 May 2003. Article 21 provides that the Princely Government spontaneously informs the French administration of the immovable property owned in Monaco by persons domiciled in France, their value and the rental income from registered leases. S01S04

58. Holding an asset through a trust or an interposed entity does not neutralise the taxation of transfers. Since Law No. 1.529 of 29 July 2022, the lifetime or death transfer of assets situated in Monaco placed in a trust governed by foreign law is subject to gratuitous transfer duties, on the net market value, according to the relationship between the settlor and the beneficiary. S16

10. Inheritances and gifts

59. Inheritance or gift duties apply to assets situated in Monaco or having their tax base there, regardless of the domicile, residence or nationality of the deceased or donor, subject to the Franco-Monegasque convention of 1 April 1950. The criterion is therefore not the residence of the deceased: a Monegasque resident who leaves assets situated outside Monaco bears no Monegasque duties on those assets. S10S25S07

60. The tariffs depend on the family relationship. The official information sheet sets 0% in the direct line between parents and children and between spouses; Law No. 276, as amended by Law No. 1.481, sets the rates applicable to other transfers on death. Lifetime transfers without consideration are governed by Articles 15 to 18 of Law No. 580 for the same degrees of relationship. S25S24S16

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61. The tariffs apply to the net share received by each beneficiary, and the declaration of succession is among the deeds compulsorily subject to registration within mandatory time limits. The official forms comprise the declaration of transfer on death and the certificate relating to securities and sums existing on the day of death. Late filing of a declaration giving rise to no duty still exposes the filer to a penalty of €10 per month of delay. S24S21S25S16

62. The convention of 1 April 1950 covers only inheritances, not gifts. For the assets covered by its Articles 2, 5 and 6, it applies to the estate of a national of either of the two States. It reserves the taxation of immovable property and real estate rights to the State of situs, that of tangible movable property to the place where it is located at death, that of assets invested in a business to the State of the permanent establishment, and that of shares, bonds, receivables and other assets not otherwise covered to the State of the deceased's domicile; if the deceased was domiciled in neither State, the latter assets are taxable only in the State of which he or she was a national. S07S06

63. For the purposes of this convention, a French national is regarded as domiciled in Monaco on the day of death only if he or she has in fact habitually resided there for at least five years, except for members of the Sovereign House and officials of the Monegasque public services. Domicile is established by the Minister of State after consulting the Consul General of France. In the absence of those five years, the assets governed by Article 6 follow the taxation of the State of domicile, determined in accordance with the convention. S07S06

64. The civil law of succession, whether the applicable law, the reserved portion of the estate (*réserve héréditaire*) or the interaction with a foreign will, is not analysed here. It does not, by itself, alter the tax criterion of the situs of the assets applied by the Monegasque administration for inheritance duties. S25S10

11. Treaties and exchange of information

65. The Franco-Monegasque tax convention of 1963 is not an OECD model convention: it organises the ISB, the taxation in France of French nationals in Monaco, VAT and administrative assistance. According to the consolidated version published by the DGFiP, the BEPS multilateral convention modifies it; a principal purpose test anti-abuse clause denies a treaty benefit where it is reasonable to conclude that obtaining it was one of the principal purposes of an arrangement or transaction, unless it is established that granting it would be in accordance with the object and purpose of the relevant provisions. This consolidated document does not replace the authentic texts. S04S41

66. Articles 20 to 22 of the 1963 convention provide for spontaneous exchanges or exchanges on request between the Tax Services Department and the DGFiP, relating in particular to immovable property owned in Monaco, turnover, remuneration, pensions, royalties and dividends received by persons domiciled in France, and to income from securities and accounts. Article 23 organises assistance in collection. S01S04

67. At multilateral level, Monaco is a party to the Convention on Mutual Administrative Assistance in Tax Matters and to the multilateral competent authority agreement on the automatic exchange of financial account information; the official FAQ states that the instrument of ratification of the administrative assistance convention was deposited with the OECD on 14 December 2016. Sovereign Ordinance No. 6.208 of 20 December 2016 organises its implementation in domestic law. Monaco had undertaken to carry out the first exchanges in 2018 on information collected in 2017. S31S32S34S35

68. With the European Union, the agreement of 7 December 2004, amended by the 2016 protocol, serves as the basis for automatic exchange in accordance with the Common Reporting Standard. A new amending protocol, signed on 13 October 2025, was made enforceable by Sovereign Ordinance No. 11.682 of 4 December 2025. According to the official FAQ, Monaco has activated exchanges with 94 jurisdictions, of which 83 are reportable. S33S35

69. Monaco has concluded with the United Arab Emirates a double taxation convention signed in Dubai on 13 November 2021. Made enforceable by Sovereign Ordinance No. 11.964 of 12 June 2026, published in the *Journal de Monaco* of 19 June 2026, it has been in force for Monaco since 12 June 2026. Under its Article 29, it takes effect for taxes withheld at source on income paid on or after 1 January 2027, and for other taxes for taxable years beginning on or after that date. S37S38S39S44

70. On the Monegasque side, this convention covers the profits tax levied on companies and the tax on the commercial profits of individuals. It defines a Monegasque resident by reference to domicile, residence, habitual abode or place of management, and contains a principal purpose test anti-abuse clause in Article 26 and an Article 24 on exchange of information. For a dividend paid by a Monegasque company to a UAE resident who is the beneficial owner, Article 10 reserves taxation to the State of residence. S37

71. This factsheet does not provide a complete inventory of the general conventions and information exchange agreements concluded by Monaco; only the texts cited have been verified. Before relying on treaty relief for foreign-source income received by a Monegasque resident, the existence, entry into force and effective date of the convention, as the Emirati example shows, and the content of the anti-abuse clauses must be verified. S37S38S04

12. Illustrative cases and limits of application

72. Case 1: an entrepreneur of French nationality, single and with no Monegasque family ties, leaves Dubai to settle in Monaco in 2026 and obtains a temporary residence permit. Under Article 7 of the 1963 convention, he remains subject in France to income tax as if he were domiciled there, and to wealth tax under the conditions of paragraph 3. Settling in Monaco therefore does not give him the benefit of the absence of income tax enjoyed by other residents, subject to the French implementing rules; a marriage to a Monegasque national, for example, would require the exchange of letters of 26 May 2003 to be examined. S01S04S28

73. Case 2: an Italian national, a Monegasque resident who can prove a stay of more than 183 days, receives dividends from a Monegasque company and rent from a flat in Milan. Monaco taxes him on neither the dividends nor the rent; the rent falls to the State of situs, and Italy may examine his residence under its own law. The Monegasque certificate of residence for tax purposes does not settle that second point. S11S30

74. Case 3: a Monegasque consultancy SAM (*société anonyme monégasque*) invoices 80% of its turnover to French and European clients for services used outside Monaco. It falls within the scope of the ISB, at the rate of 25% for its financial years opening in 2026, and charges VAT in accordance with the applicable place-of-supply rules. A retail business serving local customers for cash, with less than 25% external turnover, would remain outside the ISB but subject to VAT. S08S09S13

75. Case 4: a UAE resident acquires a Monegasque flat through a foreign company whose beneficial owners are declared by an approved agent, then transfers 10% of the shares to a third party two years later. As the beneficial owners are disclosed by an approved agent, the acquisition falls under the 7.50% rate of Article 13 bis; the 10% rate of Article 16, 2° would apply only if the entity's beneficial owners were neither individuals acting on their own account nor legal persons whose beneficial owners' identity is disclosed by an approved agent; the interaction with the obligation to appoint an agent (Law No. 1.381, Arts 5 and 6) is to be confirmed with the Tax Services Department; the subsequent transfer constitutes a change of beneficial owner taxed at 4.75% on the full market value of the flat, and not on 10% of it. S16S19S17

76. Case 5: a Monegasque resident of Belgian nationality dies, leaving to his nephew a flat in Monaco and a portfolio of shares in foreign companies deposited in Switzerland. The flat bears Monegasque duties of 10%; the portfolio, which is neither situated in Monaco nor has its tax base there, does not fall within the Monegasque tax base, without prejudice to duties claimed by other States, including Belgium, and to any inheritance convention, which this factsheet does not examine. If the deceased had been French, the 1950 convention would first have to be applied, in particular the condition of five years of actual residence. S25S24S07

77. Limits: the factsheet does not calculate Monegasque or French social security contributions and does not deal with sectoral regimes, excise duties on beverages and precious metals, or the detailed regime of trusts constituted in Monaco. It settles neither the French application of Article 7 to the real estate wealth tax nor the position of any particular taxpayer; it flags the discrepancies found between official information sheets and consolidated texts without resolving them. S01S21S16

Sources

• S01: Franco-Monegasque tax convention of 18 May 1963 (consolidated text)
• S02: Amending agreement of 26 May 2003 to the tax convention of 18 May 1963
• S03: Protocol of signature and exchange of letters to the tax convention of 18 May 1963
• S04: Consolidated version of the Franco-Monegasque convention as modified by the multilateral convention (MLI)
• S05: Tax convention with Monaco of 18 May 1963 (text published by the DGFiP)
• S06: Franco-Monegasque convention of 1 April 1950 on inheritance (text published by the DGFiP)
• S07: Convention of 1 April 1950 for the avoidance of double taxation and the codification of rules of assistance in inheritance matters
• S08: Sovereign Ordinance No. 3.152 of 19 March 1964 introducing a profits tax (consolidated)
• S09: Profits tax (official information sheet, updated 03/08/2026)
• S10: Monegasque taxation (official information sheet for businesses)
• S11: Monegasque taxation (official information sheet for individuals)
• S12: Franco-Monegasque customs convention of 18 May 1963
• S13: Code of turnover taxes (consolidated)
• S14: Value added tax (official information sheet, updated 27/08/2026)
• S15: Real estate VAT (official information sheet, updated 27/08/2026)
• S16: Law No. 580 of 29 July 1953 reorganising registration and mortgage duties (consolidated)
• S17: Law No. 1.381 of 29 June 2011 on registration duties payable on transfers of real property and real estate rights (consolidated)
• S18: Law No. 1.548 of 6 July 2023 laying down various tax provisions
• S19: Law No. 1.548 of 6 July 2023 (Journal de Monaco No. 8651)
• S20: Changes to taxation in respect of registration duties, proportional duties and the tourist levy (Legimonaco news item)
• S21: Registration duties (official information sheet, updated 28/07/2026)
• S22: Declaring a change or no change of ultimate beneficial owner (official information sheet, 31/08/2026)
• S23: Law No. 223 of 27 July 1936 codifying and amending registration, stamp and mortgage duties (consolidated)
• S24: Law No. 276 of 2 October 1939 reforming duties on transfers on death (consolidated)
• S25: Inheritance duties (official information sheet, updated 30/07/2026)
• S26: Law No. 1.481 of 17 December 2019 on civil solidarity agreements
• S27: Sovereign Ordinance No. 3.153 of 19 March 1964 on the conditions of entry and residence of foreign nationals (consolidated)
• S28: The residence permit (official information sheet)
• S29: Applying for a residence permit (official information sheet, updated 25/09/2026)
• S30: Applying for a certificate of residence for tax formalities (official information sheet)
• S31: Convention on Mutual Administrative Assistance in Tax Matters
• S32: Multilateral Competent Authority Agreement of 29 October 2014 on Automatic Exchange of Financial Account Information
• S33: Agreement of 7 December 2004 between the European Union and the Principality of Monaco on the exchange of financial account information (consolidated)
• S34: Sovereign Ordinance No. 6.208 of 20 December 2016 implementing the administrative assistance convention, the MCAA and the EU-Monaco agreement
• S35: FAQ on the automatic exchange of information in tax matters (official information sheet)
• S36: FAQ on BEPS (official information sheet)
• S37: Monaco – United Arab Emirates convention of 13 November 2021 for the elimination of double taxation
• S38: Sovereign Ordinance No. 11.964 of 12 June 2026 making the Monaco – United Arab Emirates convention enforceable
• S39: Sovereign Ordinance No. 11.964 of 12 June 2026 (Journal de Monaco No. 8804 of 19 June 2026)
• S40: Bill No. 1.129 on the minimum taxation of multinational enterprise groups (tabled on 28 July 2026)
• S41: International conventions (DGFiP list, Monaco entry)
• S42: Sovereign Ordinance of 29 April 1828 on registration, stamp duty, court registry fees and mortgages (consolidated)
• S43: Law No. 842 of 1 March 1968 on registration duties on real estate transactions subject to VAT (consolidated)
• S44: Legislative and regulatory overview for the first half of 2026 (Legimonaco news item)
• S45: Taxation of savings income (official information sheet, updated 23/02/2023)