How income tax works in Monaco
Monaco income tax is simple for most people because there is no personal income tax regime. Salaries, business income, dividends, interest, capital gains and foreign income are not taxed under a Monaco PIT system for residents who are genuinely established in the Principality.
French citizens within the scope of the 1963 France-Monaco convention are the main exception. The convention covers those who move their home or residence to Monaco and those who could not prove five years of habitual Monaco residence on 13 October 1962; it can therefore preserve French income-tax exposure despite Monaco residence.
Payroll still matters. Monaco employers must manage social contributions through the Caisses Sociales de Monaco, including employer CCSS at 13.40%, employer CAR at 8.33%, employee CAR at 6.85% and unemployment insurance at 4.00% employer / 2.40% employee from 2026.
Income tax brackets in Monaco
| Bracket | Rate | Notes |
|---|---|---|
| All personal income | 0% | Monaco does not have a personal income tax schedule for ordinary residents. |
| Salary and wages | 0% | Employment income is not taxed as PIT, but social contributions can still apply. |
Tax rates at a glance
- Personal income tax
- 0%Zero
- Highest bracket tax
- 0%
- Employee social insurance
- 6.85%
- Employer social insurance
- 13.40%
- Foreign income tax
- 0%
- Tax on wages
- 0%
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
- Monaco's no-income-tax rule does not help French citizens who fall within the France-Monaco convention; their French tax position needs to be checked.
- Social contributions are real payroll costs and are collected monthly through Monaco's social funds.
- Payments to certain French residents or French nationals in Monaco without a residence certificate can trigger a separate annual reporting duty before 1 April.
Frequently asked questions
Do expats pay income tax in Monaco?
Most expats resident in Monaco do not pay Monaco personal income tax. The main exception is French citizens within the scope of the France-Monaco convention.
Is there a Monaco tax return for salary income?
Not for ordinary personal income tax, because Monaco does not run a personal income tax system for most residents.
What payroll costs still apply in Monaco?
Employers still need to budget for Monaco social contributions, unemployment insurance and monthly payroll reporting through the Caisses Sociales de Monaco.