Tax system in Monaco
Monaco does not levy personal income tax on Monegasque nationals and residents who are genuinely established in the Principality, except for French citizens who fall within the 1963 France-Monaco convention. There is also no net wealth tax, annual property tax or council tax at the personal level.
Monaco's main direct business tax is the business profit tax. It applies to industrial or commercial companies that generate more than 25% of turnover outside Monaco, to some IP royalty income, and to administrative offices under a special flat method. Monaco also uses French-aligned VAT and customs rules, and payroll social contributions are a real operating cost.
For 2026 planning, the rate picture is stable, but transparency rules keep tightening. Monaco updated its EU automatic-exchange-of-information framework effective 1 January 2026, so banks and financial institutions remain in a stricter reporting environment.
Tax rates at a glance
- Income tax
- 0%Zero
- Wealth tax
- 0%
- Inheritance tax
- 0% to 16%
- Capital gains tax
- 0%
- Corporate tax
- 0% / 25%
- Dividend tax
- 0%
- VAT
- 20%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Remote foundersHigh earnersInvestorsExpatsFamily offices
Watch out for
- No personal income tax does not help French citizens who fall within the France-Monaco convention; their French tax position needs to be checked.
- Monaco is not tax-free in practice. VAT, customs duties, registration fees, stamp duty and payroll social contributions still matter.
- 2026 compliance is getting stricter, especially around automatic exchange of financial account information and financial-sector reporting.
Frequently asked questions
Is Monaco tax free?
Monaco is not fully tax free. Most residents pay no personal income tax, no wealth tax and no annual property tax, but companies can face business profit tax, VAT, social contributions and transfer duties.
Do French nationals pay income tax in Monaco?
Monaco does not charge them Monaco personal income tax. French citizens within the scope of the 1963 France-Monaco convention are instead treated as French tax residents for the taxes covered by that convention.
Does Monaco have VAT?
Yes. Monaco VAT follows the French system and the standard rate is 20%.