How to Get Tax Residency in Monaco

Wealth management frameworks across Europe are evolving. For many high-net-worth individuals (HNWIs), this often means increased scrutiny from tax authorities and changing tax environments. Finding a stable jurisdiction with a favourable tax structure has become critical. Enter Monaco — a city-state renowned for its Mediterranean charm and zero personal income tax policymaking — making  it an attractive option for those seeking a robust tax residency solution. Let’s explore how to get tax residency in Monaco and how a day counting solution can simplify the process, ensuring seamless compliance.

The global tax landscape is constantly evolving. Recent developments, such as the end of the UK’s non-dom regime and the tightening of golden visa programs across Europe, have prompted individuals to reassess their wealth management strategies. Previously popular residency arrangements may no longer be as effective.  

Moreover, tax authorities are placing greater focus on HNWIs and their tax affairs. Information-sharing agreements between countries are increasing, and investigations are being launched to scrutinise those with global assets.  

To protect your wealth, Monaco remains one of the most favourable jurisdictions for HNWIs. Tax residency in Monaco is just one piece of a broader wealth management strategy. Achieving it involves meeting specific residency requirements, including day-counting limits — an area where Daysium can assist.

Before diving into the process, let’s examine the benefits of Monaco’s tax residency. Decisions around tax residency are complex, involving multiple factors such as lifestyle and family ties. Monaco offers several compelling advantages:

1. Favourable Tax Environment  

Monaco’s tax regime can play a significant role in wealth protection. The city-state imposes no personal income or capital gains tax, making it particularly attractive to individuals with substantial investment portfolios. Furthermore, there is no wealth tax, and inheritance tax applies only to local assets. This tax-friendly environment is especially appealing in light of tightening tax regulations in other European countries.  

2. Central Location  

Monaco provides excellent connectivity to major European cities. As a small city-state, it is easy to travel in and out, with many residents frequently visiting nearby France. The closest international airport, Nice Côte d’Azur Airport, is approximately 30 minutes away, making both business and leisure travel convenient.  

3. Stability & Security  

Monaco is highly regarded for its long-standing reputation for political and economic stability. The legislative environment has remained largely consistent, providing a sense of security for residents. Additionally, Monaco offers a high standard of living, world-class amenities, and a vibrant social scene, making it an ideal location for HNWIs.  

The process of obtaining tax residency in Monaco is relatively straightforward, although it requires careful attention to residency requirements and proper documentation. 

Here’s a step-by-step guide:

Step 1: Meet Monaco’s Residency Requirements 

To qualify for tax residency in Monaco, you must establish a domicile or “foyer” in the city-state. You can achieve this by meeting one of the following conditions:  

• Spend 183 days or more in Monaco or  
• Demonstrate that your centre of economic interest is in Monaco.  

For many, maintaining physical presence for at least 183 days is the simplest route. However, if you plan to spend less time in Monaco, you’ll need to strengthen your economic ties by investing in local banks, purchasing real estate, establishing a family office, or starting a service-providing business. 

An Exception: French Citizens in Monaco  

French nationals face unique circumstances due to a bilateral agreement between France and Monaco. Even if they reside in Monaco, French citizens remain subject to French income tax. It’s important to seek specialised advice if you are a French national considering residency in Monaco.  

Step 2: Apply for a Tax Residence Permit

Once you meet the residency requirements, the next step is to apply for Monaco’s tax residence certificate (certificat à des fins de formalités fiscales).  

Before applying for a tax residence card, you must obtain an administrative residence permit (carte de séjour). Proof of residence can be established through property ownership or a rental agreement, supported by utility bills and other documents demonstrating occupancy. You may also need to provide additional financial documentation, such as bank statements, to verify your financial standing.  

Step 3: Ensure Day Counting Compliance  

Meeting the 183-day requirement is only one part of the process. You must be prepared to document your presence accurately. Tax authorities in Monaco — or in other tax jurisdictions you frequently visit — may scrutinise your actual presence.

Maintaining precise day counts can help establish your primary residence and prevent accidental overstays. Using technology to automate and document your travel days can simplify compliance significantly.

The path to obtaining tax residency in Monaco may vary depending on individual circumstances. Common challenges include:  

• Finding Suitable Accommodation: Monaco’s property market is highly competitive. Securing a residence that meets your needs may take time.  
• Navigating Complex Documentation: The process requires various documents to prove residency and financial sufficiency. Working with a tax advisor experienced in Monaco’s regulations can ease this burden.  
• Maintaining Day Count Compliance: Ensuring you meet the day count threshold is essential. Automating evidence collection can reduce errors and improve accuracy.  

At the heart of these challenges lies the importance of proactive planning. Technology can serve as a valuable ally in this process, simplifying compliance and strengthening your record-keeping.

Day counting plays a crucial role in tax residency compliance, especially given today’s heightened scrutiny of globally mobile individuals. Exceeding day count limits could trigger tax liabilities while failing to meet the threshold could jeopardise your tax residency status.  

Beyond preventing overstays, accurate day counting can help you confidently prove your tax residency in Monaco. This is where Daysium comes in.

 Our platform offers:  

• Real-time day counts in the palm of your hand, following rules from tax jurisdictions that matter to you
• Automated logging of your location based on location data, reinforcing compliance
• A system to attach supporting documents as evidence to your day counts, such as geotagged photos and notes

So you can confidently prove your presence in Monaco — or elsewhere — if the authorities ask questions. We like to call it the confidence to state, “There’s nothing to see here, everything is in order“. 

Gaining tax residency in Monaco offers a strategic advantage for wealth protection and lifestyle enhancement. However, it’s crucial to navigate the process with precision—particularly regarding day counting and compliance. With increased global tax oversight and information-sharing initiatives, proper documentation is your strongest safeguard.  

To ensure you’re prepared for any potential tax inquiries, take our Tax Residency Risk Score Assessment to identify potential gaps in your compliance and receive tailored advice. Whether you aim to meet the 183-day requirement or establish strong economic ties, Daysium provides the tools to help you manage your tax residency confidently.  

Ready to secure your future? Begin by evaluating your risk today.