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.
Property owners in France can prove their tax residency in Monaco by making local purchases, receiving correspondence, maintaining membership in local clubs and using a +377 telephone number.
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.
More details:
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:
Family Composition | Minimum Room Count | Recommended Area |
Single applicant | Studio | 25–30 m² |
Couple | One-bedroom apartment | 40–50 m² |
Family with 1–2 children | Two-bedroom apartment | From 60 m² |
Larger families (3+ children) | Three-bedroom or larger apartment | From 80–100 m² |
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.
Third-party funds may be used to demonstrate financial solvency: from partners, colleagues, investors, or friends.
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
Permit Type | Description |
Temporary Resident Card (Carte de Séjour Temporaire) | Initial status for new residents, valid for 1 year and renewable. |
Ordinary Resident Card (Carte de Séjour Ordinaire) | Issued after 3 years in temporary status, valid for 3 years and renewable. |
Privileged Resident Card (Carte de Séjour Privilégiée) | Granted after 10 years of residence. Valid for 10 years and opens the path to citizenship. |
Citizenship of Monaco | Available after 10 years of residence. Naturalisation requires cultural integration and proficiency in French. |
Residence Permit Procedure
Once documents are ready, the application process takes 30–40 days.
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
All documents must be in English, French, or Italian. Any documents in other languages require certified translation by a sworn translator in Monaco.
Document | Requirements |
Passport | Original and copies of all pages (including visa or French residence permit if available) |
Birth Certificate | Not older than 3 months, apostilled and officially translated |
Marriage/Divorce Certificate | If applicable, with apostille and official translation |
Passports of children under 16 | If applicable, original and copies |
Proof of Financial Standing | Bank statements or company registry extract |
Contact Information
If you have any questions or require a consultation, our experts will be happy to assist you.
Private.law Attorneys
This material is provided for public informational purposes and is freely shareable.
We specialise in solving complex legal challenges for discerning clients. 🍓