INHERITANCE, GIFT AND WEALTH TAXES IN MONACO
Monaco offers a gentle and attractive tax system, particularly with regard to inheritance, gifts and wealth tax.
Wealth tax in Monaco
There is no wealth tax in Monaco. Only certain French nationals residing in Monaco are liable for wealth tax in France. French nationals must therefore declare their real estate (flats, offices, car parks etc.) in France.
Gift tax in Monaco
Gift tax applies to property located or based in the Principality, regardless of the donor's domicile, residence or nationality. The tax rate varies according to the relationship, see the list of cases below.
Inheritance tax in Monaco
Inheritance tax applies to property situated in the Principality or based there, regardless of the domicile, residence or nationality of the deceased. The tax rate varies according to the relationship, see the list of cases below.
Tax rates in Monaco according to relationship :
In the case of an inter vivos inheritance or gift, the level of taxation depends on the degree of relationship in Monaco:
- In direct parent-child relationship or between spouses: 0%.
- Between brothers and sisters: 8%
- Between uncles, aunts, nephews and nieces: 10%
- Between collaterals other than brothers, sisters, uncles, aunts, nephews or nieces: 13%
- Between non-relatives: 16%
The Franco-Monegasque tax convention of 1 April 1950
Concerns only the application of inheritance tax between a French deceased and his heirs.
Case of real estate and property rights
Real estate and property rights (flats, offices, car parks, cellars, etc.) are subject to the inheritance tax of the country in which they are located. Thus the heirs of a flat located in Monaco of a French deceased resident in France will not pay inheritance tax if they are the children of the deceased.
Financial assets
Financial assets (shares, bonds, etc.) are only subject to inheritance tax in the country of residence of the deceased. It should be noted that only French nationals who have been resident in Monaco for more than five years are considered to be domiciled in Monaco under this convention.
Estate planning in Monaco
By will, the deceased can organise the transmission of his assets. If the deceased is domiciled in Monaco but wishes the inheritance law of his country of nationality to be applied, he can, thanks to law n°1448 of 28 June 2017, decide in his will that the inheritance law of his country of nationality be applied.
