Monaco Expat Guide

Residence, Taxation, Property & Business in the Principality

Expat Guides » Monaco
0%
Personal Income Tax
2 km²
Total Area
€50K+ / $54K+
Per m² Property
~500
American Residents
US Citizens Still Pay US Taxes: Monaco's 0% income tax does NOT benefit American citizens. The US taxes citizens on worldwide income regardless of residence. You will owe full US federal and potentially state taxes on all income. Monaco residency is about lifestyle, security, and estate planning—not US tax savings.
Ultra-HNW Threshold: Monaco residency realistically requires €500,000+ (~$540,000 USD) in liquid assets deposited in a Monaco bank, plus ability to afford housing (minimum €3,000-5,000/month or ~$3,240-5,400 USD for modest apartments). This guide is for those who meet these thresholds.

Navigate This Guide

Entry & Visas

Schengen rules, visa-free entry for Americans, and short-term stay requirements.

Residence Permits

Carte de Séjour requirements, financial thresholds, and application process.

Property Ownership

World's most expensive real estate market—buying, renting, and market realities.

Taxation

Monaco's tax-free status, exceptions for French citizens, and US tax obligations.

Healthcare

Princess Grace Hospital, private healthcare, and insurance requirements.

Banking & Wealth

Private banking, account requirements, and wealth management services.

Safety & Security

One of the safest places on Earth—crime statistics and security infrastructure.

Business Formation

SAM, SARL structures, business permits, and operating in the Principality.

Legal System

Monegasque law, enforcement patterns, and what expats should know.

Enforcement Tracker

Notable cases involving foreigners in Monaco's legal system.

Cost of Living

Realistic budgets for the world's most expensive microstate.

Why Americans Choose Monaco

Basic Residency Requirements

Monaco at a Glance

The Principality of Monaco is the world's second-smallest sovereign state (after Vatican City) and the most densely populated. Key facts:

  • Population: ~40,000 (only ~9,000 are Monegasque citizens)
  • Language: French (official), English widely spoken
  • Currency: Euro (€)
  • Government: Constitutional monarchy (Prince Albert II)
  • Legal system: Civil law based on French model
  • EU status: Not EU member but uses Euro, in customs union with France

Key Considerations

Advantages

  • No income tax (but not for US citizens)
  • No wealth tax
  • No capital gains tax
  • Exceptional security
  • Global wealth hub

Challenges

  • US taxes still apply in full
  • Extremely high cost of living
  • Very limited space (2 km²)
  • Competitive rental market
  • Small community dynamics

French Citizens: Different Rules

Due to a 1963 treaty between France and Monaco, French citizens living in Monaco are subject to French income tax as if they resided in France. This was designed to prevent wealthy French from escaping French taxes by moving 20 km down the coast.

This does NOT apply to Americans—as a US citizen, you're subject to US taxation regardless of where you live, but Monaco itself won't tax your income.

Practical Reality: Monaco works best for Americans whose income comes primarily from investments (taxed by US regardless), retirees living on accumulated wealth, or business owners whose companies are structured appropriately. The lifestyle benefits are real even without tax advantages.
Disclaimer: This information is for educational purposes only and does not constitute legal, tax, or immigration advice. Monaco regulations and practices can change. Consult with qualified Monaco attorneys and US tax professionals before making relocation decisions. Information current as of January 2026.