Tax
No personal income tax for residents — except French nationals — and 20% VAT
Monaco famously levies no personal income tax on its residents, a policy dating from 1869, with one major exception: French nationals remain taxable in France under the 1963 bilateral convention. Companies earning most turnover outside Monaco face a profits tax, VAT is 20% under the customs union with France, and inheritance in the direct line is untaxed.
Key rules
- There is no personal income tax on residents, except French nationals taxed under the 1963 France–Monaco convention.
- A business profits tax applies to companies making more than a quarter of turnover outside Monaco, broadly at the French corporate-type rate.
- VAT is 20%, applied under the customs and fiscal union with France.
- Inheritance and gift tax is 0% in the direct line (parents, children, spouse), rising for more distant relations.
Governing law
- Tax legislation of MonacoBusiness profits tax; no personal income tax
- France–Monaco tax convention of 1963 (1963)Taxes French nationals resident in Monaco
Penalties and consequences
- Surcharges and interest on business profits tax
- Penalties for VAT non-compliance
In practice
The absence of personal income tax is central to Monaco's appeal, but French nationals cannot escape French tax by moving there. The VAT and customs union with France means indirect taxation mirrors the French system.