Monaco, a true paradise on the Mediterranean, is a dream destination for many seeking to establish their residency. With its exceptional quality of life, vibrant cultural scene, unmatched security, and most notably, the absence of income tax for individuals (except for French citizens), the Principality offers compelling reasons to move here. But how can one obtain this privileged status in Monaco? Monaco Tribune explains the steps and necessary conditions.
The Principality of Monaco boasts political stability, a pleasant Mediterranean climate, and an exceptional quality of life. It’s no wonder that Monaco ranks first in the world for life expectancy.
A significant advantage of holding fiscal residency in Monaco is the exemption from income tax, thanks to a sovereign ordinance issued in 1869 by Prince Charles III. In Monaco, only industrial and commercial activities are subject to corporate tax (ISB) if, and only if, 25% of their turnover is generated outside of Monaco. This tax policy attracts many wealthy individuals worldwide to seek fiscal residency in this Mediterranean haven.
It’s important to note that French citizens have a special status compared to other nationalities. Due to the bilateral Franco-Monegasque Convention of 1963, French residents in Monaco must continue to pay income tax and wealth tax (IFI).
To obtain fiscal residency in Monaco, you must first secure a place to live, either by purchasing property or renting a residence, as proof of accommodation is a mandatory requirement. Demonstrating financial stability by providing evidence of sufficient income or substantial savings is also essential, as Monaco requires proof of financial independence. Additionally, you will need to submit to a background check, which includes a criminal record report from your country of origin and any countries where you have resided in the past five years.
The residency application process involves completing various documents and submitting them to Monaco's Department of Public Safety. These documents include proof of accommodation, financial statements, a valid passport, and a clean criminal record. Once the application is submitted, you must attend an interview with Monaco’s authorities to discuss your application and intentions for residing in the Principality.
Once these steps are completed and approved, you can enjoy the numerous benefits of fiscal residency in Monaco, including its tax advantages, luxurious lifestyle, and unparalleled quality of life.
For those looking to make Monaco their home, this practical guide provides a clear pathway to achieving that goal, ensuring a smooth transition to living in one of the world’s most desirable locations.