{"id":341428,"date":"2026-03-05T13:23:07","date_gmt":"2026-03-05T11:23:07","guid":{"rendered":"https:\/\/www.monaco-tribune.com\/2026\/03\/why-will-france-have-to-pay-monaco-several-million-euros-in-2026\/"},"modified":"2026-03-05T13:23:11","modified_gmt":"2026-03-05T11:23:11","slug":"why-will-france-have-to-pay-monaco-several-million-euros-in-2026","status":"publish","type":"post","link":"https:\/\/www.monaco-tribune.com\/en\/2026\/03\/why-will-france-have-to-pay-monaco-several-million-euros-in-2026\/","title":{"rendered":"Why will France have to pay Monaco several million euros in 2026?"},"content":{"rendered":"\n<p><b><strong>France is preparing to pay \u20ac138 million to the Principality under a tax mechanism that is more than sixty years old.<\/strong><\/b><\/p>\n\n<p>It was a report by TVMonaco that brought this issue back into the spotlight this week. According to the Monegasque channel, in 2026, France&#8217;s contribution to the Principality&#8217;s budget will reach \u20ac138 million. This is a significant increase compared to previous years, with the retrocession amounting to around \u20ac120 million in 2025, after fluctuating around \u20ac100 million during the 2010s. This increase is mainly due to the very good results of VAT collected in Monaco in 2024.<\/p>\n\n<p class=\"related\"><blockquote class=\"wp-embedded-content\" data-secret=\"9EB3k6qPcM\"><a href=\"https:\/\/www.monaco-tribune.com\/en\/2026\/03\/bad-bunny-plk-how-did-monaco-become-a-source-of-inspiration-for-musicians-around-the-world\/\">Bad Bunny, PLK: how did Monaco become a source of inspiration for musicians around the world?<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Bad Bunny, PLK: how did Monaco become a source of inspiration for musicians around the world?&#8221; &#8212; Monaco Tribune\" src=\"https:\/\/www.monaco-tribune.com\/en\/2026\/03\/bad-bunny-plk-how-did-monaco-become-a-source-of-inspiration-for-musicians-around-the-world\/embed\/#?secret=9wZZNf4D0V#?secret=9EB3k6qPcM\" data-secret=\"9EB3k6qPcM\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n\n<h2 class=\"wp-block-heading\" id=\"h-l-accord-de-gaulle-prince-rainier-iii\"><h2><b>The de Gaulle\u2013Prince Rainier<\/b> III agreement<\/h2><\/h2>\n\n<p>To understand this financial flow, we must go back to 18 May 1963. This agreement, decided by General de Gaulle and Prince Rainier III, put an end to the tax exemption regime enjoyed by French nationals residing on the Rock.<\/p>\n\n<p>Prior to this agreement, French citizens residing in Monaco paid their income tax solely in the Principality, directly contributing to its economy. Once Paris began taxing its expatriate citizens, Monaco lost a portion of its tax revenue, particularly from VAT.<\/p>\n\n<p>The purpose of the sharing account system is to restore what the VAT revenues of the two states would have been if they had formed two separate territories. In short, France collects VAT on its territory that, in theory, should have gone to Monaco. The annual payment corrects this asymmetry. Its principle is laid down in the 1963 agreement, and its calculation methods have been specified in an exchange of letters between the two governments.<\/p>\n<blockquote class=\"instagram-media\" data-instgrm-permalink=\"https:\/\/www.instagram.com\/reel\/DVbkXAjD9C2\/?utm_source=ig_embed&amp;utm_campaign=loading\" data-instgrm-version=\"14\" style=\" background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:540px; min-width:326px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);\">\n<div style=\"padding:16px;\"> <a href=\"https:\/\/www.instagram.com\/reel\/DVbkXAjD9C2\/?utm_source=ig_embed&amp;utm_campaign=loading\" style=\" background:#FFFFFF; line-height:0; padding:0 0; text-align:center; text-decoration:none; width:100%;\" target=\"_blank\"> <\/p>\n<div style=\" display: flex; flex-direction: row; align-items: center;\">\n<div style=\"background-color: #F4F4F4; border-radius: 50%; 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font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:550; line-height:18px;\">Voir cette publication sur Instagram<\/div>\n<\/div>\n<div style=\"padding: 12.5% 0;\"><\/div>\n<div style=\"display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;\">\n<div>\n<div style=\"background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);\"><\/div>\n<div style=\"background-color: #F4F4F4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;\"><\/div>\n<div style=\"background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);\"><\/div>\n<\/div>\n<div style=\"margin-left: 8px;\">\n<div style=\" background-color: #F4F4F4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;\"><\/div>\n<div style=\" width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg)\"><\/div>\n<\/div>\n<div style=\"margin-left: auto;\">\n<div style=\" width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);\"><\/div>\n<div style=\" background-color: #F4F4F4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);\"><\/div>\n<div style=\" width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);\"><\/div>\n<\/div>\n<\/div>\n<div style=\"display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;\">\n<div style=\" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;\"><\/div>\n<div style=\" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;\"><\/div>\n<\/div>\n<p><\/a><\/p>\n<p style=\" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; line-height:17px; margin-bottom:0; margin-top:8px; overflow:hidden; padding:8px 0 7px; text-align:center; text-overflow:ellipsis; white-space:nowrap;\"><a href=\"https:\/\/www.instagram.com\/reel\/DVbkXAjD9C2\/?utm_source=ig_embed&amp;utm_campaign=loading\" style=\" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none;\" target=\"_blank\">Une publication partag\u00e9e par TVMonaco (@tvmonaco)<\/a><\/p>\n<\/div>\n<\/blockquote>\n<p><script async src=\"\/\/www.instagram.com\/embed.js\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>France is preparing to pay \u20ac138 million to the Principality under a tax mechanism that is more than sixty years [&hellip;]<\/p>\n","protected":false},"author":80,"featured_media":341255,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[243,258],"tags":[3571],"post_sectags":[5150],"post_format":[2465],"class_list":["post-341428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-public-life","tag-economy-en-2","sectag-tvmonaco-en","format-in-brief"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why will France have to pay Monaco several million euros in 2026?<\/title>\n<meta name=\"description\" content=\"France is preparing to pay \u20ac138 million to the Principality under a tax mechanism that is more than sixty years old. It was a report by TVMonaco that\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.monaco-tribune.com\/en\/2026\/03\/why-will-france-have-to-pay-monaco-several-million-euros-in-2026\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why will France have to pay Monaco several million euros in 2026? - Monaco Tribune\" \/>\n<meta property=\"og:description\" content=\"France is preparing to pay \u20ac138 million to the Principality under a tax mechanism that is more than sixty years old. 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