Taxes

Monaco — Tax: System Overview

Monaco's fiscal policy is historically defined by the complete absence of direct personal income taxation, a principle established by Sovereign Ordinance in 1869 under Prince Charles III. The Principality does not levy any personal income tax, wealth tax, annual property tax, or council tax on its residents. This highly favorable domestic environment applies to all registered residents regardless of nationality, with one major bilateral exception: French nationals residing in Monaco who cannot prove a long-term historic domicile preceding October 1962 remain subject to French personal income tax as if they were domiciled in France.

Gouvernement de Monaco - MonServicePublic · Last verified 2026-07-17

Key Facts

  • Monaco has levied no personal income tax on its resident individuals since 1869.
  • French nationals living in Monaco remain fully liable to French personal income tax under the 1963 Bilateral Convention.
  • There are no annual property taxes, council taxes, or net wealth taxes in the Principality.
  • Dividends, capital gains, and investment interest earned by individuals are entirely tax-free.
  • A 20% Value Added Tax (VAT) is applied to goods and services, mirroring French VAT rules and rates.
  • Monaco is part of the European Customs Territory through its customs union with France.
  • To obtain a tax certificate of domicile, residents must physically reside in Monaco for at least 183 days per year.

Related Topics

income-taxvat
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