Monaco Family Offices Guide: Why Day Counting Still Matters

For ultra-high-net-worth individuals (UHNWIs) and the Monaco Family Offices that manage their affairs, the principality remains one of the most desirable locations in the world. With no personal income tax, high levels of discretion, and proximity to key European markets, Monaco is a natural hub for wealth planning and lifestyle management.

But amid its financial advantages, a quiet misconception persists: that Monaco residency automatically protects against foreign tax liability. In reality, day counting and having the evidence to back it up remain critical parts of managing tax risk. This is especially true for families with property, business, or lifestyle links to countries like France, the UK, or Switzerland.

While Monaco does not levy income tax on individuals, other jurisdictions don’t necessarily accept your Monaco residency at face value. It is possible to be a tax resident in two countries, a dual tax residency. 

Countries use different rules to determine tax residency that considers things like days spent in the country and economic and family ties. This criteria may mean you are liable to tax in two different locations, even if your primary residency is in Monaco.

So, while Monaco Family Offices may focus on maintaining compliant residency documentation locally, it’s the absence of tax residency elsewhere that often needs to be proven.

Tax authorities across Europe have invested heavily in data matching, analytics, and cross-border collaboration. The OECD’s Automatic Exchange of Information (AEOI) now shares financial account data across 100+ countries. Meanwhile, the UK’s HMRC Connect system can compare your claimed day count against flight logs, credit card transactions, and even social media data. Monaco residents are not exempt from this rising tide of scrutiny.

For Monaco Family Offices overseeing multiple jurisdictions, day counting is vital to a strategic tax planning toolkit. Missteps can lead to:

• Unexpected tax bills
• Costly audits that stretch back years
• Legal challenges over the centre of interest or habitual abode
• The primary defense against this? Impeccable records. 

Day counts backed by travel data, real-time tracking, and supporting evidence like geo-tagged photos or digital receipts. Not just spreadsheets, but structured, defensible data.

Whether you manage a single-family office or a multi-family setup, Monaco-based offices must now take on the role of residency compliance gatekeeper. That means:

• Creating structured systems for tracking day counts across all jurisdictions
• Educating clients on thresholds for relevant countries, such as the UK, France, and Swiss tax residency
• Ensuring a clear audit trail of presence, travel, and exceptional circumstances
• Offering proactive guidance around lifestyle planning and travel timing

Modern Family Offices are expected to do more than preserve wealth. They’re guardians of cross-border compliance. The era of passive day counting is over.

For Monaco Family Offices seeking to elevate their compliance strategy, here are several actionable steps to reduce risk and maintain defensible records across jurisdictions:

1. Establish Jurisdiction-Specific Rulesets

Start by identifying the relevant tax rules for each country your clients are connected to. For example, the UK uses a multi-factor Statutory Residence Test, while Switzerland relies more on habitual residence. Build individualised day count thresholds around each jurisdiction’s criteria.

Take our Tax Residency Risk Score Assessment for a clear view of current exposure to risks. In under five minutes, you’ll get a tailored overview of your situation and readiness.

2. Implement Real-Time Day Logging

Replace manual spreadsheets with an automated day counting solution. The best tools log day counts via smartphone data, timestamped movement, and geolocation. This reduces human error and provides evidence that holds up under scrutiny.

3. Create a Tax Compliance Calendar

Include key thresholds, deadlines, and “high-risk” periods based on client travel habits. For example, if a client typically spends summers in France, create calendar flags to monitor proximity to the 183-day mark or centre-of-interest concerns.

4. Maintain Supporting Evidence

Encourage clients to add supplementary materials to their travel data—boarding passes, hotel receipts, meeting invitations, or even geo-tagged images. This triangulation adds credibility and supports your case during an audit.

5. Run Quarterly Internal Audits

Don’t wait for a tax enquiry to assess risk. Conduct internal reviews of day counts and flags for potential exposure, especially after major events (e.g. family relocations, property purchases, or extended stays abroad).

Proactive day counting isn’t about micromanaging travel. It’s about giving families the freedom to move without compromising their tax status.

Does having Monaco residency guarantee I’m not a tax resident elsewhere?

No. Monaco residency only applies to your tax status in Monaco. If you spend significant time in the UK, France, or Switzerland or retain personal, economic, or professional ties, other countries may still consider you a tax resident.

How many days can I spend in France before becoming a tax resident?

France generally applies a 183-day rule but also considers your centre of economic interest. If your main business, financial operations, or family are in France, you could be considered a French tax resident with fewer days.

What is the role of a Monaco Family Office in tax compliance?

A Monaco Family Office supports HNWIs with financial, legal, and lifestyle management. Increasingly, it is also responsible for day-count compliance, tracking jurisdictional thresholds, and maintaining evidence to avoid unwanted tax exposure.

Can technology help with day counting for Monaco residents?

Yes. Automated platforms that log your location in real time, match supporting documentation, and generate audit-ready reports are now essential tools for Monaco-based individuals and their Family Offices.

What’s the risk of getting audited if I claim Monaco residency?

If you frequently visit or operate in other countries, you increase your audit risk. Tax authorities now use sophisticated systems to cross-check claims against real-world data. If inconsistencies are found, audits can be retrospective and costly.

If you or your clients have moved to Monaco or are considering it, it’s critical to understand that tax residency isn’t determined by address alone. It’s determined by things like economic activity and family ties. Furthermore, different countries apply different rules, and you’ll need evidence to back up any claim you make about your residency.

A strong day counting and evidence strategy is your best defence. Whether for peace of mind or preparation for a potential audit, the time to get your records in order is now.

Book a confidential call to discuss how we support Monaco Family Offices with multi-jurisdictional day count compliance.