Monaco Rental Income Guide: 0% Tax for Non-French Residents 2026
Rental income from Monaco property is not subject to Monaco personal income tax for non-French residents. French nationals may be subject to French income tax on rental income under the 1963 Franco-Monegasque treaty. There is no specific rental income tax or withholding tax on rents in Monaco. Here is how rental income taxation works in 2026.
Rental income taxation in Monaco follows the general principle of 0% personal income tax for non-French residents. Monaco does not impose any tax on rental income received by individuals who are not French nationals. French nationals resident in Monaco may be subject to French income tax on rental income from both Monaco and French properties under the 1963 treaty. The Direction des Services Fiscaux (DSF) does not require rental income reporting from non-French residents. Personal income tax rates →
Real-world example: A non-French Monaco resident owns an apartment in Monaco rented for €200,000 per year. Tax in Monaco: €0. A French national in Monaco owns the same property and receives €200,000 rental income — subject to French income tax at progressive rates (0-45%) plus CSG/CRDS at 17.2%. A non-French resident also owns a rental property in France — rental income is taxed in France (20% flat rate for non-residents or progressive rates), not Monaco. Property tax and transfer fees →
Taxation of Rental Income
- Non-French Monaco residents: 0% tax on all rental income from Monaco properties — no reporting required to DSF
- French nationals in Monaco: Rental income from Monaco and France is subject to French income tax at progressive rates (0-45%) plus social levies (CSG/CRDS 17.2%)
- Short-term rentals (Airbnb): Same rules apply — 0% for non-French residents, French taxation for French nationals
- Corporate landlords: Companies earning rental income may be outside CIT scope if engaged in passive property holding (property companies are generally not subject to Monaco CIT)
Monaco does not distinguish between residential and commercial rental income for tax purposes. The 0% rate applies to all rental income for non-French residents. There is no separate rental income tax regime.
Allowable Deductions (for French Nationals)
French nationals subject to French tax on rental income may deduct the following expenses:
- Maintenance and repairs: Costs of keeping the property in habitable condition
- Management fees: Fees paid to property management companies
- Insurance premiums: Property insurance, liability insurance
- Mortgage interest: Interest payments on loans used to purchase or improve the rental property
- Taxe foncière: Annual property tax paid by the owner
- Co-ownership charges: Building maintenance and common area charges
- Depreciation: Buildings may be depreciated under French tax rules
French nationals may opt for the micro-foncier regime (30% flat deduction on gross rental income up to €15,000) or the régime réel (actual expenses deduction) for higher rental income.
Registration and Compliance
- Non-French residents: No registration or reporting required in Monaco for rental income. Landlords may still need to report in their home country
- French nationals: Must report rental income on French tax return (2044 or 2044-SEB) and pay French income tax and social levies
- Rental contracts: Written rental contracts are standard practice in Monaco. Registration with authorities may be required for tenant residency permits
- VAT: Residential rental is generally exempt from VAT. Commercial rental may be subject to French VAT at 20%
Is there a withholding tax on rental payments?
No. Rental payments from tenants to landlords are not subject to withholding tax in Monaco. Tenants do not need to deduct or remit any tax. The landlord is responsible for any applicable tax obligations (French nationals to French tax authorities).
Can rental losses be offset against other income?
For French nationals subject to French tax, rental losses (where expenses exceed rental income) may generally be offset against other income in the same tax year, subject to anti-avoidance rules. For non-French residents, the question does not arise as rental income is not taxed.