Move to Monaco: 0% Income Tax Since 1869
Monaco has charged 0% personal income tax since 1869, with no capital gains tax and no wealth tax. The principality funds itself through tourism, real estate, and financial services rather than taxing residents. For high-net-worth individuals willing to meet the steep entry requirements, Monaco offers the most established zero-tax residency in Europe.
Tax Environment
Monaco has had 0% personal income tax since 1869. Residents pay no tax on salary, business profits, investment returns, or any other form of personal income. There is no capital gains tax and no wealth tax. Direct-line heirs also pay no inheritance tax.
The one exception is French nationals. Under a bilateral agreement between France and Monaco, French citizens living in Monaco remain subject to French income tax. All other nationalities benefit from the full 0% tax regime.
Monaco generates government revenue from tourism, real estate transactions, and its financial services sector rather than taxing individuals. There is a 33.33% corporate tax, but it only applies to companies deriving more than 25% of their revenue from outside Monaco. VAT is set at 20%, aligned with France.
Cost of Living
Monaco has the highest cost of living in the world. These figures reflect a mid-range lifestyle within the principality.
| Category | Monthly Cost (USD) |
|---|---|
| Rent (1-bed apartment) | $5,000–$8,000 |
| Food & groceries | $1,500 |
| Utilities (electricity, water, internet) | $300 |
| Transport | $200 |
| Total (mid-range) | ~$10,000 |
Residency Requirements
Must be held in applicant's name
One of the highest financial thresholds globally
Serves as proof of financial self-sufficiency
Can be a rental lease or property purchase
Property prices are among the highest in the world
Rental contracts must be registered with authorities
No specific day-count test
Assessed by lifestyle and ties to Monaco
Maintain local bank, housing, and social connections
Background and character checks
Clean criminal record required
Process typically takes 2–3 months
Estimated Annual Tax Savings
Approximate savings from relocating to Monaco, based on standard tax rates in each origin country.
| Moving From | Gross Income | Tax at Home | Tax in Monaco | Annual Savings |
|---|---|---|---|---|
| Australia | $500k AUD | ~$213k | $0 | ~$213k/yr |
| United Kingdom | £500k GBP | ~£203k | £0 | ~£203k/yr |
| Canada | $500k CAD | ~$222k | $0 | ~$222k/yr |
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Open the calculator →Frequently Asked Questions
Does Monaco charge personal income tax?
No. Monaco has had 0% personal income tax since 1869. Residents pay no tax on salary, investment income, or business profits. There is also no capital gains tax and no wealth tax. The principality funds itself through tourism, real estate, and financial services rather than taxing its residents.
Are French nationals exempt from Monaco's 0% income tax?
Yes. Under a bilateral agreement between France and Monaco, French nationals living in Monaco remain subject to French income tax. This is the only exception to Monaco's 0% tax policy. All other nationalities benefit from the full tax exemption when they become Monaco residents.
What are the residency requirements for Monaco?
Monaco requires applicants to deposit at least €500,000 in a Monaco bank account and provide proof of accommodation, either through rental or property purchase. Applicants must demonstrate they will reside primarily in Monaco, though there is no specific day-count test. It is one of the most exclusive residency programmes in the world.
How much does it cost to live in Monaco?
Monaco has the highest cost of living in the world. A budget lifestyle starts at around $6,000 per month, a mid-tier lifestyle costs approximately $10,000 per month, and a comfortable lifestyle runs $20,000 or more per month. Rent for a 1-bedroom apartment ranges from $5,000 to $8,000, with food around $1,500, utilities $300, and transport $200.