Monaco: Personal Taxation
Inheritance and Gift Taxes
Inheritance and gift taxes are only payable by residents on assets situated in Monaco and do not apply to assets located outside the jurisdiction. The tax payable arises on a transfer made at the time of a person's death or on a transfer made by way of inter vivos gift.
Gifts located within Monaco which are left to charitable institutions or to the nation are exempt from this tax whether the transfer occurs on death or inter vivos.
The rates of tax payable depend on how close the relationship is between the donor and the donee with the general rule being that the more distant the relationship the higher the tax payable.
The rates payable on transfers of property situated in Monaco whether by way of inter vivos gift or on death are as follows:
- Direct line spouses (wife, parents and children), nil;
- Brothers and Sisters, 8%;
- Uncles, Aunts, Nieces & Nephews, 10%;
- Other relatives, 13%;
- Unrelated persons, 16%.
If the deceased is a French national who had been resident in Monaco for five years at the time of his death then assets located in Monaco are governed by the laws of Monaco whereas assets located in France are taxed according to the principles of French tax law.
Monaco does not give tax credits for death duties, inheritance taxes and gift taxes. Thus if a person dies with assets in Monaco and tax has already been paid on the transfer of those assets by the laws of another jurisdiction Monaco will levy its own taxes if tax is payable under its own internal laws.