Wealth management in Monaco

«Alexis, I’m moving to Monaco next year. Everyone tells me there’s no tax. Why is my accountant asking me what year I was born and how long I’ve lived there?»

Because these two questions decide everything. Monaco is the destination where a French citizen's tax situation depends least on their assets and most on their nationality and date of installation.

The Principality hosts 5,656 French citizens registered with the consular register as of December 31, 2025, a decrease of -7.02 % over one year — the sharpest decline in our panel. The French nevertheless form one of the two main communities there.

Two separate conventions apply, and they do not overlap. The one of May 18, 1963, deals with income tax; the one of 1^er April 1950 inheritance law. At Balmont Conseil, We read both, because confusing one with the other is the most frequent mistake on this subject.

1. Why seek expertise in wealth management In Monaco?

Four points, and none of them concern the composition of your assets.

• Article 7 of the 1963 convention. French citizens who transferred their domicile or residence to Monaco from October 13, 1957, or who cannot prove five years of habitual residence there by October 13, 1962, remain subject to French income tax under the same conditions as if they resided in France.
• The five-year rule of the 1950 inheritance convention. A French citizen can only be considered domiciled in Monaco at the time of their death if they have actually resided there habitually for at least five years at that date.
• The nationality of the spouse. Article 7 applies to persons of French nationality. A spouse who is not French is not covered by it, which can create two separate regimes within the same household.
• What the 1950 convention does not cover. It targets inheritance taxes. It expressly excludes gift taxes between living persons.

2. The France ↔ Monaco framework in five verified points

Here is the applicable framework, verified in the text of both conventions and in official sources as of September 15, 2026.

The five-year rule, text in hand. Article 1^er c) of the 1950 convention stipulates that "persons of French nationality may only be considered as having had their domicile in the Principality at the time of their death if, on that date, they had habitually resided there in fact for at least five years." An exception is made for persons belonging to the Sovereign Household, as well as for officials and agents of the Monegasque public services, for whom no minimum period of residence is required.

Practical consequence. A French citizen who dies less than five years after settling in Monaco is not considered domiciled there under this convention. The timing of their arrival then ceases to be a mere formality and becomes a factor in the inheritance process.

A useful clarification regarding the exit tax. An administrative list from 2012, still widely copied, placed Monaco outside the automatic deferment. The current list, finalized on October 8, 2025, shows the opposite with regard to income tax. We verify this point in each case—it being understood that a French citizen covered by Article 7 of the 1963 convention first raises the question of whether they are actually transferring their tax residence.

3. Our services: 360° support for expatriates and investors

Three projects, in the order in which they condition the others.

Qualification of your situation with regard to Article 7

This is the absolute prerequisite. We establish, with supporting documents, whether or not you fall within the scope of Article 7 of the 1963 Convention: nationality, date of transfer of domicile or residence, situation on October 13, 1962 where applicable, and special cases recognized by case law.

The result determines your income tax regime — and, in practice, your entire wealth management strategy. Two French neighbors in Monaco may be subject to opposing tax regimes.

• Written and sourced position on the application of Article 7.
• The situation differs for each member of the household according to their nationality.
• Consequences for income tax and real estate wealth tax.

Succession calendar and the five-year rule

We precisely date the starting point of your habitual residence in Monaco and from this we derive the date on which the five-year rule of the 1950 convention will be satisfied.

In the meantime, we are adapting the structure of your assets to this interim period. This is as much a matter of scheduling as of structuring, and it is rarely done.

Donations, transfers, and envelopes

The 1950 convention does not cover gifts inter vivos: these are therefore governed by the domestic law of each State, and in particular by Article 750 ter of the French General Tax Code. Article 750 ter, paragraph 3, makes taxable in France all assets received by a donee domiciled in France for at least six of the last ten years.

Regarding the envelopes, we examine what is preserved and what is subject to arbitration. One Luxembourg life insurance contract offers a framework independent of the subscriber's residence, which is of particular interest during the period when Monegasque status is not yet consolidated.

4. Methodology: our way of working

We work in four stages, and you know where you are at each stage.

1. The initial assessment. We assess your actual situation: composition of assets, project timeline, situation of each member of the household, and tax domicile of your heirs — because it is theirs that dictates, not yours.
2. The applicable reference framework. We establish, source by source and with its date, the framework that concerns you. What we do not know, we write "to be confirmed" — never anything else.
3. The arbitrations. We present you with the numerical options, along with their respective consequences, and you decide. Heritage engineering comes after the decision, not before.
4. The follow-up. An annual review, offered free of charge, which verifies that the framework has not changed — the conventions are modified, the attractiveness schemes are eliminated, the thresholds change.

5. What the firm offers you

This is what specifically distinguishes our intervention.

• Sources, not claims. Each item in your file has its reference number and date. You can check. This is the only way to work on a subject where most of the information available online is outdated.
• A single point of contact in France. We coordinate with your local advisors, we do not replace them: the internal tax regulations of the host country are handled by a qualified professional on site. Our role is to maintain overall consistency and to defend the French side of the case.
• Fees that are easy to understand. Firm fees: €500 including VAT per hour. Annual follow-up is included. No hidden kickbacks, no performance-based billing.

Frequently Asked Questions in Monaco

Does a French citizen living in Monaco pay French income tax?

Often, yes. Article 7 of the convention of May 18, 1963 provides that persons of French nationality who have transferred their domicile or residence to Monaco from October 13, 1957, or who cannot prove five years of habitual residence there on October 13, 1962, remain subject to French income tax under the same conditions as if they resided in France.

The absence of income tax in Monaco is therefore a reality for residents in general, but it does not benefit this category of French citizens. This is the first point to establish.

Where does this five-year rule I'm being told about for inheritance come from?

From Article 1^er c) of the inheritance agreement of 1^er April 1950 — a text distinct from that of 1963, which explains the frequent confusion.

It stipulates that French nationals can only be considered domiciled in Monaco at the time of their death if they have habitually resided there in fact for at least five years prior to that date. Members of the Sovereign Household and employees of Monegasque public services are exempt from this residency requirement.

Are donations covered by the 1950 convention?

No. Its article 1^er b) expressly specifies that gift taxes inter vivos are not covered.

Gifts are therefore governed by the domestic law of each state, and in particular by Article 750 ter of the French General Tax Code. This is a crucial point when considering making a transfer of assets during one's lifetime from Monaco.

My spouse is not French. Does this change their tax status?

Article 7 of the 1963 convention applies to persons of French nationality. A spouse who does not possess this nationality is not covered by it.

This can therefore result in two distinct tax regimes within the same household, with consequences for income tax returns, property wealth tax, and inheritance. We will assess each individual's situation separately.

Will I pay CSG on my French-source income?

On your French-source property income and capital gains, the applicable rate is 17.2%. The exemption from CSG and CRDS is reserved for individuals affiliated with a mandatory scheme in a State of the European Economic Area, Switzerland, or the United Kingdom, and Monaco does not belong to any of these groups.

If you also fall under Article 7 of the 1963 Convention, your situation requires specific examination, as liability for social contributions depends on actual affiliation and not solely on income tax status.

In summary

Monaco is not the tax-free destination it is described as: it is a destination where the tax regime for a French citizen depends on their nationality and the date of their arrival, under two separate conventions, from 1963 and 1950.

The entire task consists of precisely establishing your position with regard to these two texts, and deriving a timeline from that. It's less spectacular than a montage, and much more useful.

Firm's fees: €500 including VAT per hour. Annual follow-up is offered.

Let's review your situation

A thirty-minute exchange is enough to determine if you fall under Article 7 and where you stand with the five-year rule. You can also start with a Free X-ray of your contracts.

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