Back to all countries
🇲🇨

Monaco Tax Guide

Europe
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
98/100
Extremely Tax Friendly
Business Tax Score
75/100
Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days required for tax residency; must demonstrate sufficient means and accommodation

Income Tax Rates

Top Marginal Rate
0%
Structure
No personal income tax (except French citizens)

Foreign Income Treatment

System
Exempt
Details
No tax on personal income for residents (except French citizens under 1963 treaty)

Investment Income

Capital Gains
0%
Dividends
0%
Interest
0%

No capital gains tax for individuals


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - 0% between spouses and direct line; 8-16% for siblings/extended family on Monaco assets only

Practical Notes

French citizens remain subject to French income tax. High cost of living and property. Minimum €500,000 bank deposit typically required for residency.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
25%
Effective Rate Note
25% only if >25% turnover from outside Monaco or IP-related income; 0% if ≥75% turnover in Monaco
Free Zone / Incentives
Start-up relief: 0% for 2 years, phased increase to 25% by year 6

Withholding Taxes

Dividends
0%
Interest
0%
Royalties
0%

VAT / GST

Rate
20%
Note
20% VAT aligned with France; financial services exempt

Compliance & Substance

Substance Requirements
High - genuine economic activity required for corporate exemptions
Compliance Friction
Low - well-regulated, OECD compliant

Notable Regimes

  • Startup relief program
  • R&D tax credit 30%

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Monaco?

Monaco has a top personal income tax rate of 0%. The tax structure is: No personal income tax (except French citizens). See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Monaco?

Monaco uses a exempt system for foreign income. No tax on personal income for residents (except French citizens under 1963 treaty)

What are the residency requirements for Monaco?

Tax residency in Monaco generally requires 183 days of physical presence. 183 days required for tax residency; must demonstrate sufficient means and accommodation. Always verify current rules with official sources.

Is there a wealth tax in Monaco?

No, Monaco does not have a wealth tax. No wealth tax

What is the corporate tax rate in Monaco?

The corporate tax rate in Monaco is 25%. 25% only if >25% turnover from outside Monaco or IP-related income; 0% if ≥75% turnover in Monaco