Monaco Investment Income Guide: 0% WHT on Dividends, Interest, Royalties 2026
Monaco does not impose any withholding tax on investment income. Dividends, interest, and royalties are paid gross with 0% WHT to both residents and non-residents. There is no personal income tax on investment income for non-French residents. French nationals may be subject to French social levies (CSG/CRDS). Here is how investment income is taxed in 2026.
The taxation of investment income in Monaco is exceptionally favorable. Monaco imposes no withholding tax on any form of investment income paid to residents or non-residents. Non-French Monaco residents pay 0% personal tax on investment income. French nationals resident in Monaco may be subject to French social levies on French-source investment income under the Franco-Monegasque treaty. The Direction des Services Fiscaux (DSF) administers the minimal tax obligations. Cross-border tax guide →
Real-world example: A Monaco-based investment holding company pays €2,000,000 in dividends to its UK resident shareholder. WHT: €0. The UK shareholder receives the full €2,000,000. A Monaco resident individual earns €100,000 in interest on Monaco bank deposits. Tax: €0. A French national resident in Monaco receives €500,000 in dividends from a French company — subject to French CSG/CRDS at 17.2% = €86,000, but no French income tax (under the treaty, only social levies apply). Corporate tax overview →
Withholding Tax Rates on Investment Income
- Dividends — residents: 0% WHT — no tax on dividends received by Monaco residents
- Dividends — non-residents: 0% WHT — dividends paid to non-residents are completely tax-free
- Interest — residents: 0% WHT — no tax on interest received by Monaco residents
- Interest — non-residents: 0% WHT — interest paid to non-residents is completely tax-free
- Royalties — residents: 0% WHT — no tax on royalties received by Monaco residents
- Royalties — non-residents: 0% WHT — royalties paid to non-residents are completely tax-free
The zero-WHT regime is a cornerstone of Monaco's attractiveness as a financial center. There are no treaty restrictions or conditions — the 0% rate applies regardless of the recipient's country of residence. No treaty relief paperwork is needed as domestic law already provides 0%.
Taxation of Investment Income for Individuals
- Non-French Monaco residents: 0% tax on all investment income — dividends, interest, royalties, and capital gains are completely tax-free at the personal level
- French nationals in Monaco: Subject to French social levies (CSG/CRDS at 17.2%) on French-source investment income under the 1963 treaty. No French income tax on this income under the treaty
- Non-residents: 0% Monaco tax on Monaco-source investment income
- Bank interest: No tax on interest from Monaco bank accounts for anyone
CSG/CRDS Social Levies
French nationals residing in Monaco may be subject to French social levies on French-source investment income:
- CSG (Contribution Sociale Généralisée): 9.2% on French-source investment income (partially tax-deductible)
- CRDS (Contribution pour le Remboursement de la Dette Sociale): 0.5% on French-source investment income
- Prélèvements sociaux: Additional social levies totaling 17.2% on French-source passive income
- Scope: Applies to French-source dividends, interest, rental income, and capital gains for French nationals resident in Monaco
These social levies apply only to French nationals and only on French-source income. Non-French residents of Monaco are not subject to CSG/CRDS. Monaco-source investment income (e.g., Monaco bank interest) is not subject to these levies even for French nationals.
Compliance and Reporting
Monaco companies paying dividends, interest, or royalties have no withholding obligation — no tax to deduct, no form to file, no remittance to make. Investment income received by Monaco resident individuals (non-French) is not reportable to the DSF. French nationals must report French-source investment income on French tax returns and pay social levies accordingly.
Are dividends from Monaco companies subject to any tax?
No. Monaco does not impose any tax on dividends paid by Monaco companies, whether to residents or non-residents. There is no withholding tax, no income tax, and no reporting obligation. Dividends are paid gross in full.
Do French nationals in Monaco pay French tax on investment income?
Under the 1963 treaty, French nationals in Monaco are subject to French social levies (CSG/CRDS at 17.2%) on French-source investment income but not French income tax. The treaty provides that income subject to French social levies is exempt from French income tax. Non-French-source investment income is not subject to any Monaco or French tax.