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Monaco Personal Tax Guide: 0% PIT for Residents 2026

Monaco is one of the world's most famous zero-tax jurisdictions. There is no personal income tax for Monegasque citizens and long-term residents. French nationals living in Monaco are taxed by France under the Franco-Monegasque tax treaty. Here is how personal taxation works in Monaco in 2026.

Personal income tax in Monaco is governed by the Franco-Monegasque tax treaty of 1963 and Monegasque Law No. 1,315 of 2014. The Direction des Services Fiscaux (DSF) administers tax matters. Residents who are not French nationals pay 0% personal income tax on worldwide income. French nationals resident in Monaco are subject to French income tax under the same rules as if they lived in France. The tax year is the calendar year. Monaco's zero-tax regime has made it a premier destination for high-net-worth individuals. Check residency rules →

Real-world example: A British expatriate living in Monaco earns €500,000 per year from investment income and consulting fees. As a non-French resident of Monaco, they pay €0 in personal income tax. A French national living in Monaco with the same income pays French income tax at progressive rates up to 45% (plus CSG/CRDS), potentially €200,000+. A Monegasque citizen working in Monaco earns €100,000 — no PIT applies. Compared to France (up to 45% + 17.2% social levies = 62.2% top rate), the Monaco zero-rate regime saves high earners millions over a lifetime. Social contributions are separate →

Personal Income Tax Regime

  • 0% for non-French residents: No personal income tax on any income — employment, self-employment, investment, pension, or business income
  • French nationals: Taxed by France under the treaty — must file French tax returns and pay French PIT rates (0-45% progressive plus social levies)
  • Monegasque citizens: 0% PIT on all income, no filing requirement
  • Non-residents: 0% Monaco tax on Monaco-source income (no withholding tax either)

The zero-rate regime applies regardless of income level. There is no progressive bracket, no alternative minimum tax, and no surtax. Monaco has consistently maintained this policy to attract international talent and capital. The 1963 treaty with France ensures French nationals cannot bypass French taxation by residing in Monaco.

Who Benefits from 0% PIT

  • Non-French EU/EEA nationals: Full 0% benefit on worldwide income once resident in Monaco
  • Non-EU nationals (UK, US, CH, etc.): Same 0% benefit — no additional conditions beyond residency
  • Monegasque citizens: Automatic 0% rate regardless of residence
  • Pensioners: 0% on all pension income (except French nationals)
  • Investors and entrepreneurs: 0% on capital gains, dividends, interest, and business profits

France nationals are the only group that does not benefit from Monaco's zero-rate regime. The Franco-Monegasque treaty ensures that French nationals are taxed as if they were resident in France, regardless of their Monaco residence. This applies to all French-source and worldwide income under French tax rules.

Taxable Income Categories

For non-French Monaco residents, no category of personal income is subject to Monaco tax:

  • Employment income: Salaries, wages, bonuses — 0% tax
  • Business income: Self-employed and sole proprietor income — 0% (though corporate structures pay CIT if applicable)
  • Investment income: Dividends, interest, royalties — 0% WHT from Monaco sources
  • Capital gains: 0% for individuals on all asset classes
  • Rental income: 0% on Monaco rental income (non-French residents)
  • Pension income: 0% on all pension receipts

Who must file a Monaco tax return?

Individuals who are not French nationals generally do not file an income tax return in Monaco. There is no annual income tax declaration for non-French residents. French nationals must file French tax returns. Companies and self-employed individuals must file for CIT/VAT purposes. A simple residency declaration is required annually.

Are French nationals really taxed the same as in France?

Yes. Under the 1963 treaty, French nationals residing in Monaco are subject to French income tax on the same basis as if they lived in France. They must file French tax returns and pay French progressive PIT rates (0-45%), plus CSG/CRDS social levies at 17.2%. This applies to worldwide income. The treaty prevents any tax advantage for French nationals moving to Monaco.

Is there a wealth tax or net worth tax in Monaco?

No. Monaco does not impose a wealth tax, net worth tax, or solidarity tax on individuals. French nationals are not subject to the French IFI (Impôt sur la Fortune Immobilière) on Monaco real estate, as the treaty limits French taxation to income tax only. See the wealth tax guide for details. Wealth tax guide →

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