Monaco inheritance and the UK: long-term residence matters
2026-04-20
A Monaco apartment may remain within UK Inheritance Tax after its owner has left the UK. From 6 April 2025, the treatment of directly owned foreign assets generally turns on long-term UK residence, rather than simply the former domicile test.
Reconstruct the residence history
The general test considers at least ten UK-resident tax years within the twenty preceding the year of the chargeable event. Exposure after leaving can continue for three to ten tax years, depending on the history. Transitional rules also exist.
A move to Monaco or a new address does not prove an immediate end to UK inheritance-tax exposure.
Distinguish the owner from the heir
The deceased’s position is central. An heir living in the UK does not, by itself, make a Monaco apartment subject to UK Inheritance Tax. Conversely, residence in Monaco at death does not guarantee that the deceased’s foreign assets fall outside the UK charge.
UK assets, trusts and certain indirect holdings need separate analysis. Previous gifts and retained benefits should also be disclosed to the UK adviser.
Prepare the Monaco side
Monaco applies its own rules to an apartment situated in the Principality. Local exemptions or duties do not determine the UK result. Any relief for double taxation needs case-specific review. Lifetime gifts are not universally tax-free in Monaco.
Organize valuation and next steps
Collect residence history, ownership documents, company or trust information, earlier gifts and the property file. Specify the date at which the apartment needs to be valued.
Monaco Properties can provide a value opinion and assist with keeping, letting or selling the apartment. The notary and UK tax adviser determine the tax and filing obligations.
Request an initial value opinion
