Everything you need to know if you are considering moving to Monaco

Thinking about moving to Monaco? This guide will help you navigate the essential aspects of relocating to the world’s second-smallest nation.

We will discuss the key elements to consider before making the move, including how to get a residence permit, how the tax system works, the realities of the real estate market and banking system, and the world-class healthcare and education systems.

Keep reading if you want a complete overview of all the must-know details for a successful move to the Principality of Monaco.

Index

Getting the residency
Paying taxes
Doing business
Private banking
Housing
Healthcare
Education

Getting the residency

Monaco does not have a “Golden Visa” or a typical “Residency by Investment” program as found in some other countries. Instead, the process for gaining a residence permit revolves around proving you have sufficient financial means to support yourself in the Principality.

In most cases, you will be asked to open a bank account in a Monegasque bank and deposit a substantial amount of money (often starting at around €500,000). Once the bank is satisfied with your financial stability, it issues a letter of recommendation to the authorities, which then enables you to apply for your residence permit.

Applicants who prefer a different path can demonstrate financial sufficiency in other ways. These can include being hired by a Monaco-based employer, managing a local company that generates verifiable income, or uniting with a spouse or a close relative who is already a legal resident. Each route aims to prove you won’t become a financial burden on the Monegasque state.

Once you secure your administrative residency, you receive what is known as a Carte de Séjour. This is the initial document allowing you to live in Monaco. Typically, there are three types of residence permits:

1-year card (“Carte de séjour de 1 an”): renewable twice, offering up to three years in total.
3-year card (“Carte de séjour ordinaire de 3 ans”): also renewable twice, up to nine years total.
10-year card (“Carte de séjour privilégiée de 10 ans”): renewable indefinitely, usually granted once you have lived in Monaco for several years.

After an uninterrupted stay of at least ten years, you could even consider applying for Monaco’s citizenship, although that has additional requirements and is a separate process from the standard residence permit system.

It is important to remember that merely having a residence permit in Monaco does not automatically mean you are considered a tax resident. For official tax residency, you will need to apply for the so-called certificate of tax residence, which we will discuss in the following section.

However, the very first step is always the same: obtaining your administrative residency.

Paying taxes

One of the biggest reasons people look at moving to Monaco is the Principality’s highly favorable tax environment. For individuals, there is generally no personal income tax. This has made Monaco especially appealing to high-profile figures ranging from professional athletes and performers to entrepreneurs and investors.

Tax system

Monaco is often celebrated for its low or nonexistent taxes, but a handful of levies do apply in the Principality. Most notably, there is no personal income tax for non-French individuals, no wealth tax, and generally no capital gains tax. However, Monaco does apply inheritance and gift taxes on assets located within the Principality, with rates varying based on the relationship between the deceased (or donor) and the beneficiary.

Additionally, while Monaco has no personal income tax, it does levy a corporate tax on companies that earn more than 25% of their revenue outside the Principality. This tax is currently set at 25%. Newly established businesses enjoy partial or full exemptions during their first five years. On top of that, Value Added Tax (VAT) applies similarly to the French rate, generally set at 20%.

In real estate transactions, VAT or transfer duties may be due, depending on whether the property is classified as “new” or “old.” Lastly, certain specific duties apply to alcohol, tobacco, and registration fees, but aside from these exceptions, Monaco maintains its reputation as a low-tax environment.

Tax residence certificate

A crucial element to remember is the tax residence certificate, often referred to as the “certificat à des fins de formalités fiscales.” This certificate states that you are a tax resident in Monaco. You can usually apply for it around one year after you have settled in the Principality. To obtain it, you must:

Hold a valid residence permit.
Meet the tax residency criteria, which typically involves either spending more than 183 days per year in Monaco or having your principal economic interests and center of activities there.
Demonstrate real ties to Monaco, such as utility bills or a rental agreement showing you actually live in the Principality.
Declare on your honor that you pay taxes in Monaco (which essentially means paying none if you qualify) and not in another country.

Once granted, the Monaco tax certificate is a powerful document for proving to foreign authorities that Monaco is indeed your tax residence. This can help you avoid double taxation claims or unwanted scrutiny from other countries where you may have assets, businesses, or family ties.

Minimum days

Another common requirement is that you do not spend more days in another single jurisdiction than you do in Monaco. Although it’s not always necessary to strictly count 183 days, it’s wise to avoid a situation in which foreign tax authorities could argue your real center of life is elsewhere.

If you have children in local schools, a partner living with you in Monaco, or significant personal and economic ties (like investing in local banks or running a family office), your position as a Monaco tax resident will be stronger.

Aside from the personal income tax exemption, Monaco does not impose wealth tax, capital gains tax, or dividends tax for non-French nationals. This can lead to significant savings, particularly for those with substantial global investments.

However, keep in mind that French nationals have a special status due to bilateral agreements, and they generally remain subject to French taxes even when living in Monaco. If you are not French, the standard rules apply and you can enjoy the absence of personal income tax in the Principality.

Doing Business

Monaco’s pro-business environment, strategic location on the French Riviera, and its reputation as a global financial hub make it a magnet for entrepreneurs and companies wishing to set up shop.

The Principality is not part of the European Union, so certain business regulations differ from those on the continent, but this unique status can actually open up interesting possibilities for international ventures.

Requirements to Incorporate: to establish a legal entity in Monaco, you typically need to file an authorization request with the government. The most common company form is the SARL (Société à Responsabilité Limitée), which requires a minimum share capital of €15,000 and at least two shareholders. The manager must live in Monaco or in a nearby French or Italian city, ensuring effective management is truly local.
Corporate Tax: as previously mentioned, Monaco does levy corporate tax at 25% for entities earning over 25% of their income outside Monaco. For companies focused on local commerce or certain “civil” (non-commercial) activities, tax burdens can be significantly reduced—or even zero.
Advantages: beyond tax considerations, Monaco also offers high-end infrastructure, robust local banks, and a prestigious global image that can attract both clients and partners. Even so, operating here requires careful planning, as space is limited and certain types of businesses require additional government approvals due to market saturation or ethical concerns.

With the right business strategy and the proper guidance, many find that Monaco’s blend of low taxes, prime location, and global prestige makes it an enticing spot to put down corporate roots.

Private Banking

Monaco’s private banking sector is legendary for its personalized service, financial sophistication, and strong heritage of client confidentiality. Thanks to stringent regulations and a deep-rooted banking tradition, the Principality features around two dozen banks, many of which are specialized in private wealth management.

Monegasque banks cater to high-net-worth clients with services like tailored investment portfolios, asset protection strategies, and wealth planning. Though privacy is valued, modern transparency rules (CRS, FATCA) do require banks to cooperate with foreign tax authorities when legitimate concerns arise, positioning Monaco less as a secretive haven and more as a reputable international financial center.

Residents and many non-residents can open a bank account, provided they meet certain financial criteria. Some banks may set a minimum deposit (often around €500,000) for non-residents, while high-net-worth clients seeking dedicated portfolio management or trust services might face a minimum of €1 million or more. Despite the high thresholds, Monaco’s personalized approach and advanced banking solutions often attract international entrepreneurs, investors, and families seeking a secure, well-regulated environment for their assets.

Housing

Living in Monaco does come with one major drawback: extremely high real estate prices. The microstate is nestled between the sea and the surrounding mountains, leaving little space for large-scale development. Demand far outstrips supply, driving property prices to among the highest in the world.

Whether you plan to rent or buy, it is essential to be prepared for premium costs. A studio apartment can easily start at a few thousand euros per month in rent, while the Monaco average house price per square meter for purchasing property is consistently topping worldwide rankings (often exceeding €50,000 per square meter in prime locations).

Despite the high costs, many people continue to see real estate in Monaco as a solid investment due to steady demand and the perceived security of owning property in such a politically stable environment.

For those who prefer renting, be aware that prices can vary drastically based on location, building amenities, and whether the apartment is new or second-hand. Typical rents can range from €3,000–6,000 per month for small studios, and well into tens of thousands for larger family apartments in prestigious areas like Monte Carlo or Larvotto. Some luxury penthouses even fetch monthly rents well above €50,000, making Monaco’s rental market a true reflection of the exclusive living standards you’ll find there.

If you are interested in renting or purchasing a property in Monaco, please do not hesitate to contact us since we have access to a considerable catalogue of off-market properties.

Healthcare

Monaco’s healthcare system is widely regarded as one of the best in the world. Residents benefit from both public and private options, ensuring top-quality care is available at all times.

The public healthcare system is largely modeled after the French one, with mandatory contributions to the Caisses Sociales de Monaco (CSM) for employees and self-employed individuals. If you legally live and work in Monaco, you will be making these contributions, which grant you access to comprehensive public medical services.

French and Italian citizens can also make use of public healthcare in Monaco if they can demonstrate that they contribute to their respective national healthcare systems. Meanwhile, visitors and foreign residents without contributions must rely on private health insurance to cover medical expenses in the Principality’s hospitals and clinics.

That said, many people, even those paying CSM contributions, choose to supplement public coverage with private insurance for broader benefits and quicker access to certain specialists.

The Princess Grace Hospital (Centre Hospitalier Princesse Grace) is Monaco’s main public hospital, offering modern equipment, a 24-hour emergency service, and a wide range of specialties. In the private sector, you’ll find a variety of clinics such as the Clinique de Monte-Carlo or the Polyclinique de Monaco, both of which cater to patients seeking more personalized services or advanced procedures.

Regardless of which option you choose, you can rest assured that the standard of medical care is generally excellent throughout the Principality.

To sum up, healthcare in Monaco is efficient, technology-driven, and geared toward patient comfort. While public health insurance will typically cover the major expenses, private supplements are commonplace. Securing both types of coverage, if feasible, ensures you benefit from state-of-the-art care with minimal waiting times—yet another reason why Monaco stands out as a desirable place to live.

Education

Though petite in size, Monaco boasts an education system aligned with French standards but enhanced with international flair. Children from six to sixteen must attend school, starting in primary (ages 6–11) and then moving on to secondary (ages 11–15 for collège, 15–18 for lycée). Many subjects mirror the French curriculum, but Monaco adds local twists like lessons in the Monégasque language, early English instruction, and in some cases religious studies (optional upon parental request).

There is a variety of state schools as well as private and international institutions. The International School of Monaco, for example, teaches in English and follows a British-based program, making it a popular choice among expats. More recently, the British School of Monaco has opened for primary levels, and other highly regarded international schools lie just beyond Monaco’s borders in neighboring French towns.

Higher education in Monaco is somewhat limited but does include the International University of Monaco (IUM), which offers bachelor’s and master’s programs, largely focusing on business and international management. While competition for places in the Principality’s top schools can be intense, most families find the quality of education—and the exposure to multiple languages—well worth it.

Are you considering the move?

Shifting your residence to Monaco can bring numerous advantages, from an appealing tax setup to remarkable healthcare and an unparalleled lifestyle. The processes can seem overwhelming at first, especially for those unfamiliar with the local requirements. However, with proper planning, expert guidance, and a clear understanding of what is expected, the transition can be smooth.

If you need professional assistance with any aspect of relocating—be it your residency application, tax certificate, property search, or healthcare setup—we are here to help. Feel free to contact us at [email protected] or through our contact form.

We also recommend downloading our free report, “The definitive guide to living and paying taxes in Monaco,” for an even more in-depth understanding of the Principality’s administrative procedures and unique lifestyle benefits.

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