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How to obtain tax residence in Monaco

The Principality provides considerable tax advantages © Nick Karvounis/ Unsplash

A practical guide to becoming a tax resident in Monaco.

If there is one place where many people dream of settling, it is Monaco. A veritable paradise on the shores of the Mediterranean, the Principality has a lot to offer. An exceptional living environment, rich cultural life, unrivalled security and above all no income tax for private individuals, except for French people.


But how to go about obtaining this privileged status in the Principality? Monaco Tribune explains the necessary steps and conditions.

The advantages of Monegasque tax residency

The Principality offers political stability, a pleasant Mediterranean climate and an exceptional quality of life. It is no coincidence that Monaco is one of the countries with the highest life expectancy in the world.

It’s no mean advantage having tax residence in Monaco exempt from any income tax, thanks to a Sovereign Ordinance in 1869 signed by Prince Charles III in the Principality. Only industrial and commercial activities are subject to a profit tax (ISB) provided 25% of their turnover is generated outside Monaco.

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For these reasons, many wealthy individuals around the world seek to acquire tax residence in the Eldorado that is Monaco.

It should be noted that the French have a particular status compared to other nationalities. Because of the Franco-Monegasque Bilateral Convention of 1963, French nationals living in Monaco must continue to pay both income tax and property tax (IFI).

Eligibility criteria

The Interior Department lists three criteria that must be met:

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  • have a home here
  • have sufficient financial resources to live in Monaco
  • not pose a threat to public order

How to get there

First, to apply for tax residence, it is essential to have housing in the Principality that is able to accommodate the number of people in the household. To put the application file together, the following documents will be requested (in French, English or Italian, with translations for other languages).

Then, the applicant must be able to prove they have sufficient financial resources to live in the Principality. To do this, they must have a salary, professional income, support from a relative or sufficient savings in a Monegasque account.

Finally, applicants must prove their good character by providing a copy of their police record from their last country or countries of residence.

Once these steps have been completed and the documents have been collected, they can apply to the Government for a residence permit (formerly called a resident card). An identity document is all that is required for those  from the  European Economic Area. For people outside the EEA, you must also apply for a visa at the nearest French consulate or in some cases at the French embassy in Monaco.

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Application processing

Processing the residency application may take several weeks. The authorities will verify the authenticity of the documents provided and assess whether you meet all the requirements. And all that remains is a meeting with the Police Department. Once your application is approved, you can pick up your residence permit. The first one will be «temporary», valid for 1 year and will cost you 80 euros, renewal costs 40 euros.

There are other residence permits depending on how long you have lived in Monaco;

  • Ordinary permit: valid for 3 years, after 3 years’ residence. The first permit costs 100 euros, and renewals cost 50 euros.
  • The “privilege” permit: valid for 10 years, after 10 years of residence. The first permit costs 160 euros, 80 euros to renew.