Author: Dana Berzegova

Attorney, Family Office

Concept

The Principality of Monaco is a microstate on the shores of the French Riviera, offering premium European residency by investment. By placing capital in the country, the investor becomes exempt from taxes and gains access to European mobility and Monaco’s financial infrastructure.

Unlike other jurisdictions, investments in Monaco remain under the investor’s control and are not transferred to a state fund. To obtain residency, the applicant must simply:

• prove the ability to reside in Monaco (rental contract or property ownership)
• become a client of a local private bank (from €500,000)
• demonstrate the absence of a criminal record.

To apply for a residence permit, it is sufficient to prove continuous residence in Monaco for three months, usually confirmed by a utility bill. Physical presence in Monaco is presumed and not subject for checks, which is particularly convenient for Riviera residents.

Tax System

Monaco offers one of the most favorable tax regimes in the world:

• 0% personal income tax
• 0% capital gains tax
• 0% dividend tax
• 0% wealth tax
• 0% inheritance tax for direct heirs, 8–16% for indirect heirs
• VAT (standard rate 20%)
• property purchase tax (4–6%)

At the same time, Monaco is not on the EU’s black or grey lists, which means its tax residents are not considered high-risk by financial institutions. Nonetheless, Monaco is considered as offshore jurisdiction according to the position of the Russian Federal Tax Service.

To obtain tax residency status in Monaco, it is necessarily to spend 183 days per year in the country, which is presumed.

Corporate Taxation in Monaco

Monaco offers unique tax advantages for companies with international business. Income derived from outside the Principality may be exempt from taxation, making the jurisdiction attractive for establishing holding structures managing foreign assets.

Monaco-based companies are frequently used for:

• establishing holding structures for ownership of foreign investments
• managing intellectual property and collecting royalties
• international investment advisory
• managing private capital with global diversification

New companies are provided with significant tax benefits - complete exemption from corporate tax for the first 2 years of operation and gradual introduction of taxation over the next 3 years.

Living in Monaco

To apply for a residence permit, the applicant must prove they have accommodation in Monaco. The accommodation must be spacious enough to accommodate all residents. Although there are no formal requirements on the minimum size, the immigration office applies the following practical standards for comfortable living:

Applicants must also prove actual residence in Monaco for at least three consecutive months, typically with utility bills, rental contracts, or property purchase documents.

Housing Options

Financial Standing

In addition to actual presence in Monaco, the applicant must provide proof of financial standing. Although Monaco does not set a fixed minimum, the practical threshold is:

• from €500,000 for single applicants
• from €1,000,000 for families

Any Monaco bank may confirm financial standing by preparing a financial profile and issuing a recommendation letter. This requires opening a personal account and placing funds in an approved financial product, such as a deposit, bonds, club deal, etc. These funds must remain for the duration of the residence permit. The bank may not close the account during this period.

If applying via the company, the applicant must provide a company registry extract (not older than 3 months) as proof of financial independence.

Validity of Residence Permit

Residence Permit Procedure

Step 0: (for non-EU nationals)

Citizens of non-EU countries must first apply for a long-term French visa (Type D) personally. This is required under the 1963 agreement between France and Monaco, whereby France handles Monaco’s visa matters.

Processing time: 2–4 weeks

Step 1: Submitting a Residence Application

Upon arrival in Monaco, the applicant must contact the Residents' Section of the Public Security Department within 8 days.

Step 2: Interview

A mandatory interview will be conducted by a police officer in English, French, or Italian. Original documents are reviewed, motivations and living arrangements are discussed, and a sworn declaration is signed.

Processing time: 4–6 weeks

Required Documents

Contact Information

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