Monaco: Personal Taxation
Residence and Liability for Taxation
Only French nationals pay income tax in Monaco. The amount payable is assessed according to the principles of French tax law and is paid directly to the French Government. By way of exception French nationals do not pay income tax if any one of the following 3 situations apply:
- they had been habitually resident in Monaco for five years on October 13, 1962 and they hold dual French and Monegasque nationality;
- they are attached to the Prince's household; or
- they are the French spouses of foreigners residing in Monaco and the marriage took place before January 1, 1986.
According to a revision of the tax treaty between Monaco and France agreed in 2001, French nationals who took up residence in Monaco after 1989 began to pay French wealth tax from 2002.
For other than French nationals, residence is not an issue affecting taxation in Monaco, since income tax and capital gains taxes do not apply. However, if an individual is in business as a sole trader or on his own account, he will be taxed according to the principles of the the Business Profits Tax (see Domestic Corporate Taxation).
All employees in Monaco are liable to pay social insurance contributions; see Social Security Taxes.