Returning to France from Monaco: for a French citizen covered by Article 7-1, income tax does not arise upon return

Returning from Monaco is not the same as returning from any other foreign country. A French citizen covered by Article 7-1 of the Franco-Monegasque tax treaty remains subject to French income tax: their return does not, therefore, make them a resident of France. French citizens who resided in Monaco before October 13, 1957, are an exception (BOFiP, § 30), as detailed in the following section. The changes are explained elsewhere: social security contributions, tax administration, wealth tax (IFI), Monegasque residence permits, and inheritance tax. This page concerns French citizens.

Why does the return not create income tax for a French citizen subject to article 7-1

Article 7, paragraph 1 of the convention of May 18, 1963, in force since September 1, 1963, applies to French citizens who "transfer their domicile or residence to Monaco." They remain liable in France for income tax and the supplementary tax, as if they were domiciled there. Also included are those who cannot prove five years of habitual residence in Monaco as of October 13, 1962.

According to the French Official Tax Bulletin (BOI-INT-CVB-MCO-10, version of 02/06/2021), these taxpayers file their income tax returns with the Menton tax office for individuals. French citizens who settled in Monaco before October 13, 1957, are an exception: as they are domiciled outside of France, they must prove this with a Monegasque residency certificate valid for three years and renewable. Any interruption of their permanent and habitual residence in Monaco results in the loss of this benefit, regardless of their country of destination.

On the Monegasque side, the Government describes "the absence of any income tax", with the exception of "French nationals governed by the Franco-Monegasque bilateral Convention of 1963".

What the return can change

The home or principal residence is the first of the three criteria in Article 4 B of the French General Tax Code (CGI). According to the French Tax Administration's Official Bulletin (BOI-IR-CHAMP-10), it is sufficient for one of the criteria to be met.

The Monegasque residence permit

The Monegasque government states: «Foreigners leaving the Principality must return their residence permit eight days before their departure.» The Public Security Department then issues a residence permit. Required documents include: proof of identity, residence permits for all departing family members, proof of departure date, and new address. The page, updated on October 28, 2024, does not distinguish between permanent and temporary departures, nor does it mention French nationals: please review it before taking any action. The tax residence certificate (valid for one year) does not mention France or tax treaties.

Succession: two systems meet

The convention of April 1, 1950, applies only to French inheritance tax, not to gifts inter vivos. A French citizen is deemed to be domiciled in Monaco upon death if they had been habitually resident there for at least five years. Real estate is taxable in the state where it is located. Shares, equity interests, bonds, and receivables are taxable in the state of the deceased's domicile, or failing that, in the state of their nationality (BOI-INT-CVB-MCO-30).

Monegasque inheritance tax applies to assets located within the Principality, regardless of the deceased's domicile or nationality: 0 % in the direct line and between spouses, 8 % for siblings, 10 % for uncles, aunts, nephews, and nieces, 13 % for other collateral relatives, and 16 % between non-relatives. The government website does not mention any allowances. Our page on inheritance between France and Monaco details the agreement.

What the sources I read don't say

Three points remain unanswered, and we do not fill them in from memory.

• The transfer of the file. The BOFiP does not deal with the procedure for transferring domicile from Monaco to France, nor the year of the transfer, nor the last declaration in Menton.
• The inbound expatriate regime. The conditions are stated (five calendar years without a tax residence in France before taking office; according to the Senate, a residence in France during this period excludes the scheme). No source consulted specifies whether years spent in Monaco count towards French citizenship. This point should be verified before accepting a position that would count towards citizenship there.
• Form 3916. Foreign bank accounts must be declared with income, under penalty of a €1,500 fine per undeclared account (impots.gouv.fr). The page consulted does not mention Monaco: the inclusion of Monegasque accounts is confirmed.

The French tax authority's official bulletin (BOFiP) on acquiring tax residence in France (BOI-IR-DOMIC-20) cites the 1963 convention, but only for expatriation to Monaco, not for return. The general rule in the same BOFiP is that a taxpayer who establishes their residence in France is only taxable on all their income, French or otherwise, from the date of acquiring their residence.

Return on July 15, 2026: numerical example (fictitious profile)

Situation. A Frenchman, a fictitious profile, leaves Monaco on July 15, 2026 to settle in France. He owns securities whose sale, after his return, would generate a capital gain of €100,000.

Issue. He wants to know the dates to be respected in Monaco and what income tax and social security contributions represent on this gain.

Strategy. It starts from the rule of the Monegasque Government (return of the title eight days before departure), whose page does not mention French nationals, then applies to this gain, by hypothesis, the rates of impots.gouv.fr: 12.8 % of income tax and 18.6 % of social levies.

Result. If the refund rule applies to him, the date is July 7, 2026, eight days before July 15; this is confirmed with the Directorate of Public Security. On €100,000, the overall rate of 31.4% (%) breaks down into €12,800 in income tax and €18,600 in social security contributions. For a French citizen subject to Article 7-1, income tax is already levied in France, under the same conditions as if they were domiciled or resident there. According to the BOFiP (§ 230), social security contributions are separate from the income tax under Article 7-1. The application of these rates to this profile is hypothetical: no source consulted addresses this for a French citizen residing in Monaco. The exact profile must be verified on file.

What changes depending on your situation

• Your date of arrival in Monaco: before October 13, 1957, before January 1, 1989 or after.
• The five years of habitual residence, which count towards the inheritance.
• Assets held in Monaco and those you purchase in France.
• Your professional project in France, for the expatriate tax regime.

No results can be announced without reviewing your file.