Private Wealth 2023 Comparisons

Individual

Monegasque nationals and foreign residents in the Principality are not subject to any individual taxation (including on income, capital gains, dividends, interests and other passive income).

This does not impact the tax rules that might be applied by other states, especially in cases where a Monaco resident employed by a Monaco-based business has kept close links with their state of origin (ie, sufficient ties to continue to qualify as a tax resident) and could therefore be subject to individual taxation on his global income.

French nationals who settled in Monaco after 1958 are considered French tax residents under the 1963 Double Tax Treaty between France and Monaco.

Individuals qualifying as French tax residents are fully liable to pay tax in France, even if they exclusively work in Monaco and their entire income is derived from a Monaco-based employment relationship.

Estates

The rates of taxation for estates on assets located in Monaco are as follows:

• direct line between parents and children or between spouses: 0%;
• between persons bound by a civil partnership contract: 4%;
• between brothers and sisters: 8%;
• between uncles, aunts, nephews and nieces: 10%;
• between relatives other than the above: 13%;
• between unrelated persons: 16%.

Gifts

Gift tax applies to property located or based in the Principality, regardless of the donor's domicile, residence or nationality. The tax rate varies according to the relationship, and is the same as the rate used for the taxation of estates (see above).

Trusts

Trust created in Monaco or transferred to Monaco

All assets, wherever they may be, that are put in the trust are subject to the following duty arising on the creation or transfer of the trust in the Principality:

• one beneficiary: 1.3%;
• two beneficiaries: 1.5%; and
• three or more beneficiaries: 1.7%.

There is a possibility to opt for an annual tax of 0.2%.

Monegasque securities are subject to a reduced duty of: 0.05%; 0.25%; or 0.45%.

Foreign trusts

The net market value of property, rights or proceeds, located in Monaco, placed in a trust governed by foreign law and transmitted inter vivos or causa mortis, are subject to taxation according to the relationship existing between the settlor and the beneficiary of the trust at the following rates:

• in a direct parent-child relationship or between spouses: 0%; 
• between brothers and sisters: 8%;
• between uncles, aunts, nephews and nieces: 10%;
• between collaterals other than brothers, sisters, uncles, aunts, nephews or nieces: 13%; and
• between non-relatives: 16%.

Based on the interpretation of the tax services, the tax is owed at the moment the asset is put into the foreign trust.

Foundations

Monegasque law provides for the possibility to create foundations that benefit from an advantageous tax regime.

The creation of a foundation must be authorised by sovereign order.

In order to be authorised, the foundation must:

• comply with public policy, morality, and national security;
• meet a goal of general interest; and
• have sufficient funds to fulfil its purpose.

Monegasque foundations are exempt from paying estate and gift taxes.

However, a change in the beneficial owner, except if it is in direct line, will trigger a transfer tax equal to 4.5% or 7.5% of the entire value of the real property located in Monaco and owned by the foundation. 

Single and Multi-family Offices

Single or multi-family offices can become subject to tax on profits in the event that they carry out commercial or industrial activities generating more than 25% of their turnover outside Monaco.

The tax on profits is levied on the basis of the following rates:

• 28% for the fiscal year commencing on 1 January 2020;
• 26.5% for the fiscal year commencing on 1 January 2021;
• 25% for fiscal years commencing on or after 1 January 2022.

Both gift tax and inheritance tax are only applicable to assets located in Monaco.

Other factors, such as nationality, or the place of domicile/residence, are irrelevant.

Gift tax is applicable to gifts evidenced in writing and/or a notarised deed that must be recorded.

The donee pays the gift tax (unless agreed otherwise). The heir pays the inheritance tax.

The rates of taxation are the same for the two taxes and depend on the degree of relationship between the testator (or donor) and the heir (or donee):

• direct line between parents and children or between spouses: 0%;
• between persons bound by a civil partnership contract: 4%;
• between brothers and sisters: 8%;
• between uncles, aunts, nephews and nieces: 10%;
• between relatives other than the above: 13%; and
• between unrelated persons: 16%.

Also, the municipality of Monaco, public hospitals and charitable institutions do not pay taxes on gifts they receive.

Furthermore, companies subject to the tax on profits are allowed to deduct from their taxable profits up to a maximum of 0.2% of their turnover, the gifts they have made to charities or organisations of general interest carrying out their activities in the Principality of Monaco and having a philanthropic, educational, scientific, social, humanitarian, sporting, familial or cultural purpose, or contributing to the development of the artistic heritage or the defence of the natural environment. This tax relief can be raised to 0.3% of the turnover in certain circumstances.

See 1.1 Tax Regimes.

Non-residents and non-citizens are treated in the same way as Monaco nationals and residents.

There is no property tax in Monaco.

Legal entities that hold real property rights to one or more real properties located within Monaco, irrespective of the headquarters’ location or of the law by which they are governed, must make an annual declaration regarding the change of (or the absence of change of) the beneficial owner or of one of the beneficial owners of these rights. Some entities are exempt from making this declaration.

A local representative duly accredited by the Monegasque tax authorities must be appointed to accomplish such filing.

In the event of a change, a transfer tax equal to 4.5% or 7.5% of the entire value of the real property located in Monaco is owed.

This is not applicable if the change is the result of a gift between spouses or to a direct lineal relative.

Leases are subject to a registration duty, the leasehold duty, which is paid by the tenant. The leasehold duty is calculated at a rate of 1% of the rent and costs corresponding to the entire period for which the tenant occupies the property. The leasehold duty must be paid when registering the lease. Registration must occur under financial penalty within three months of the contract’s signature.

A notable change has been introduced by Monegasque Law No. 1,448 of 28 June 2017 on private international law, which now provides for the application of a single law to the estate (see 2.2 International Planning).

This has made it easier to anticipate successions involving property located in Monaco or involving Monegasque residents.

There are no other draft laws at present, either on estate or on transfer taxes, that could change the actual rules that apply.

To date, Monaco has signed 35 bilateral agreements (33 of which are in force).

Monaco is a party to the OECD Convention on Mutual Administrative Assistance in Tax Matters.

It aims to intensify the exchange of tax information, both automatically and on request, between countries in order to better combat tax evasion and fraud.

Monaco is considered to be "largely compliant" with international tax transparency standards.

Also, on 17 May 2016 the Principality of Monaco undertook to adopt all mandatory Base Erosion and Profit Shifting (BEPS) measures and to apply them consistently.

The Principality of Monaco has thus ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI).

Concerning the US Foreign Account Tax Compliance Act (FATCA), there is an agreement dated 8 September 2009 between the government of the Principality of Monaco and the government of the United States of America for the exchange of information in tax matters.

In Monaco, there are no real cultural considerations when it comes to organising a succession.

However, use of trusts, civil companies (non-trading companies) and family offices to organise family assets and the succession is common practice in Monaco.

For international planning, Monaco’s rules of private international law play an important role.

The new Code of Private International Law (Law No. 1,448 of 28 June 2017) entered into force on 8 July 2017.

The question of the application over time of this code is yet to be finally settled. 

A recent court decision ruled that the time of death is critical in determining the applicable law (ie, the former rules of conflict of laws or the new Code of Private International Law). 

According to this decision, the new code is applicable to successions where the deceased died on or after 8 July 2017.

According to this law, Monegasque courts have jurisdiction over successions opened in Monaco, that is when the deceased was domiciled in Monaco, and over successions involving real property located in Monaco. In the latter case, jurisdiction may be limited to the Monegasque real estate.

A person’s domicile can be defined as the place where they have their main establishment.

Monegasque nationals and residents are presumed to be domiciled in Monaco.

Articles 56 to 67 of the new Code of Private International Law are specifically relevant to successions and wills.

The law applicable to a succession is the law of the place of the deceased’s last domicile or the law of the state of which the deceased is a national, provided that such law was chosen by the deceased during their lifetime in a will.

On the one hand, the substantial (essential) validity of a will is governed by the law applicable to the succession.

The applicable law under the aforementioned new Code of Private International Law cannot prevent the application of forced heirship rules provided for by the law of the deceased’s nationality at the time of death. Nor can it lead to the application of forced heirship rules when the law of the deceased’s nationality at the time of death does not provide for it.

The applicable law is the substantive law of the country designated; hence, there is no "renvoi" and Monegasque courts will not apply the conflict of laws rules of the said country so that the designated law governs the overall succession (whether movable or immovable and whether located in Monaco or not).

On the other hand, a will is considered formally valid if it complies with the provisions of the law of the country:

• where the deceased drafted their will;
• of which the deceased was a national at the time of drafting the will or at the time of death;
• where the deceased had their domicile at the time of drafting the will or at the time of death;
• where the deceased had their habitual residence at the time of drafting the will or at the time of death; or
• for real estate, where the real estate is located.

Monegasque law protects two categories of heirs by granting them forced heirship rights: ascendants and descendants.

In the absence of descendants, ascendants benefit from forced heirship rights of up to half of the estate.

Descendants always have a forced heirship right, the proportion of which depends on the number of children. Thus, the overall forced heirship right is:

• one half of the deceased's assets if there is one child;
• one third of the deceased's assets if there are two children; and
• one quarter of the deceased's assets in the presence of three or more children.

However, there are conditions that must be met in order to be a legal heir and benefit from the forced heirship rights:

• The heir must exist on the day the succession is opened (excluding children not yet born or born non-viable); and
• The heir must not be "unworthy". The following heirs are unworthy:
1. anyone who has voluntarily caused or attempted to cause the death of the deceased;
2. anyone who has made a capital charge against the deceased which is deemed to be slanderous; and
3. an heir of full age who, having been informed of the murder of the deceased, does not denounce it to the authorities.

Trusts

Concerning trusts, the Hague Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition expressly states that public policy may override its provisions. 

Furthermore, the new Code of Private International Law states that the law applicable to the trust shall not hinder the application of the law governing the succession.

Hence, a trust cannot have the effect of bypassing the forced heirship rules provided by the law governing the succession under Monegasque private international law rules. 

In these circumstances, assets transferred into the trust should still be considered part of the estate for the purpose of assessing the extent of forced heirship rights.

Therefore, if these assets exceed the available portion of the estate, they will be subject to reduction in order to fulfil the said rights.

But if the deceased’s national law does not know the concept of “forced heirship rights” and does not protect them, a trust may result in distributing the settlor/deceased’s assets without abiding by safeguards provided by Monegasque law in terms of forced heirship rights.

Marital Property

In Monaco, the default matrimonial property regime is separation.

Therefore, the property will belong to the spouse who acquired it.

Married couples can also select, by contract passed before a notary, to be subject to the community of property regime, or any other sui generis regime which is not contrary to public policy.

Since the surviving spouse is not entitled to forced heirship rights, he or she only receives from the available portion of the estate after the matrimonial regime has been liquidated.

In a civil partnership, each civil partner’s assets are owned separately.

However, if neither partner can prove that an asset belongs specifically to one of them, this asset is considered to be jointly owned by the partners.

The surviving spouse of a married couple is entitled to one year of free use of the main dwelling that is part of the deceased spouse’s estate if that spouse actually lives in this dwelling and unless provided otherwise in the decedent’s will. In a civil partnership the surviving partner is also entitled to this right.

Prenuptial and Postnuptial Agreements

Monegasque marriage contracts are fully recognised and binding in Monaco.

They relate to the spouses’ matrimonial property regime and they are entered into before a Monegasque notary ahead of the marriage (or within the course of the marriage through a change of matrimonial property regime subject to the court’s approval in consideration of the interest of the family).

Foreign prenuptial or postnuptial agreements may also be recognised in Monaco and enforced by Monegasque courts as long as they are governed by a law that the parties could choose under Monegasque private international law rules.

Provisions regarding maintenance and compensation upon divorce are not valid under Monegasque law but may be recognised in Monaco if they were validly made under a foreign law as long as it is a law that the parties could validly choose under the Monegasque rules of private international law and such provisions are not in breach of Monegasque public policy.

The transfer of property has no effect on the cost basis of the property being transferred.

When an estate is open, transfer of assets tax free is possible if the transfer is in a direct line between parents and children or between spouses.

For other people or legal entities, a tax will be owed as described in 1.1 Tax Regimes.

Therefore, there is no need to use vehicles or planning mechanisms to transfer assets tax free.

However, trusts, civil companies (non-trading companies) and family offices are commonly used in Monaco by families to organise family assets and the succession. Taxes will still be applied.

A person can also organise his estate using a will, a testamentary trust, or an agreement as to the succession (pacte successoral).

Please note that Monegasque courts will not give effect to a deed if some of its provisions are deemed contrary to public order (this may be the case if a will is in breach of the Monegasque legal provisions regarding the forced heirship rights for children for instance).

Monaco has adopted legal provisions compliant with Regulation No. 650/2012 of the European Parliament and of the Council of 4 July 2012 on jurisdiction, applicable law, recognition and enforcement of decisions and acceptance and enforcement of authentic instrument in matters of succession and on the creation of a European Certificate of Succession.

Since the passage of Law No. 1,448, Monaco recognises the “agreement as to succession” by which two or more persons reach an agreement on mutual wills. This agreement also creates, modifies or terminates rights to the (or their) future estate.

Article 59 of the law on private international law states that the agreement as to succession relating to one person is governed by the law which would have been applicable to the estate of the person if they had died on the day on which the agreement was concluded.

Article 60 of the law on private international law states that if this agreement as to succession concerns the estate of several persons, it would be valid only if it complies with all the laws which would have governed the succession of all the persons involved if they had died on the day on which the agreement was concluded.

Article 61 of the law on private international law states that the parties may choose the applicable law of the agreement as to succession from the laws of the nationality of one of them.

Article 62 states that the agreement as to succession cannot deprive the heirs who are not parties to the “pacte successoral” of their reserved portion or of another right of which they cannot be deprived.

Monegasque courts will not give effect to the said agreement if some of its provisions are considered contrary to public order.

However, Article 62 allows potential heirs who are parties to the “pacte successoral” to renounce to their right, and in particular to their reserved portion.

Cryptocurrencies will be considered as assets of the succession.

A surviving spouse can have access to the email account of a deceased spouse if they have the passwords, or recover the email account from the email platform

The vehicles described in 4.1 Asset Protection below could be used for tax and estate planning purposes.

There are no recent developments in Monaco that affect the benefits of planning with trusts, foundations or similar entities.

The net market value of property, rights or proceeds located in Monaco, placed in a trust governed by foreign law and transmitted inter vivos or causa mortis, are subject to taxation according to the relationship existing between the settlor and the beneficiary of the trust.

The tax is owed at the moment the asset is put into the foreign trust.

See 4.1 Asset Protection.

The net market value of property, rights or proceeds located in Monaco, placed in a trust governed by foreign law and transmitted inter vivos or causa mortis, is subject to taxation according to the relationship existing between the settlor and the beneficiary of the trust.

The tax is owed at the moment the asset is put into the foreign trust.

Foreign trusts, as well as settlors and beneficiaries of such trusts, are not subject to a specific tax other than those that could apply to Monegasque assets (eg, transfer tax for real estate).

The tax regime for Monaco trusts is as follows:

Deeds establishing or transferring trusts in the Principality are subject to a proportional registration duty which varies according to the number of successive beneficiaries of the trust and is set at the following rates:

• a single beneficiary: 1.3%;
• two beneficiaries: 1.5%; and
• more than two beneficiaries: 1.7%.

This duty is converted into an annual tax of 0.2% if the parties so request in the trust deed. The duty or tax is levied to the exclusion of any gift or death duties.

In both cases, the tax is calculated on the total value of the assets invested in the trust, with the exception of the Monegasque securities referred to below.

In the case of transferable securities, the capital used to liquidate the duty is determined by the average stock market price on the day the trust is set up, or on the day of the settlor's death in the case of a testamentary trust. This average price is that of the London Stock Exchange, when the trust is set up by a person of British nationality, and that of the New York Stock Exchange, when the trust is set up by persons of any other nationality.

In the case of unlisted securities, the capital is determined by the trustee's estimated declaration, without any deduction for expenses.

The 0.2% tax is payable in advance in annual instalments. The first instalment must be paid on registration of the deed, and subsequent instalments within the first ten days of January of each year, on pain of a fine equal to a quarter of the tax due.

Trustees are personally liable for the payment of annuities other than the first.

The capital of trusts represented by Monegasque securities is subject to a reduced proportional duty set as follows, taking into account the number of successive beneficiaries of the trust:

• a single beneficiary: 0.05%;
• two beneficiaries: 0.25%; and
• more than two beneficiaries: 0.45%.

This duty, which is paid at the time of registration of the deed setting up the trust, takes the place of any gift or death duties.

Also, free transfer duties will apply to inter vivos gifts or gifts mortis causa made to a trust governed by foreign law, subject to two conditions:

• transfers must involve property, rights or income capitalised in Monaco; and
• there must be a direct relationship between the settlor and the beneficiary (ie, between ascendants and descendants, or between spouses).

There are no provisions in Monaco law on irrevocable trusts.

Any trustee established or domiciled in the Principality who administers a trust set up or transferred in the Principality is required to communicate the following information to the Minister of State, so that it can be entered and kept in a specific register known as the "Register of Trusts".

The trustee must possess and keep adequate, accurate and up-to-date information on the beneficiaries of each trust they administer in Monaco.

To this end, the trustee collects and keeps information on the identity of:

• the settlor(s);
• the trustee or trustees;
• where applicable, the protector(s);
• the beneficiaries or category of beneficiaries; and
• any natural person exercising effective control over the trust.

This declaration, or modification, must be communicated to the Minister of State within one month of the modification.

The same obligation applies to trustees and any person occupying an equivalent position in legal arrangements similar to trusts, established or domiciled outside the European Union, when they acquire real estate or establish a business relationship in the Principality.

Where trustees or persons occupying equivalent positions in a similar legal arrangement are established or domiciled in several EU member states, or where the trustee or person occupying an equivalent position in a similar legal arrangement establishes multiple business relationships on behalf of the trust or legal arrangement in several of these states, the obligation to register is satisfied by providing the Minister of State with a certificate proving registration with the register of one of these states, or with an extract from the information on beneficial owners held in the register of one of these states.

The application for registration, signed by the trustee or by the person occupying an equivalent position, as referred to above, shall indicate:

• the identity of the settlor(s) of the trust;
• the identity of the trustee(s), ie, the natural or legal person(s) authorised to administer or represent the trust;
• where applicable, the identity of the person(s) acting as protector(s) of the trust;
• where the future beneficiary or beneficiaries have already been designated, the natural person or persons who are beneficiaries of the trust assets;
• where the future beneficiary or beneficiaries have not yet been designated, the group of persons in whose principal interest the trust has been constituted or produces its effects;
• the identity of any other natural person who exercises control over the trust assets; and
• the trust's ownership and control structure.

In Monaco, foundations are revocable, which means that the beneficiaries can be changed and the foundations can be closed.

Foundations that hold real property rights to one or more real properties located within Monaco, irrespective of the headquarters’ location or of the law by which they are governed, must make an annual declaration regarding the change of (or the absence of change of) the beneficial owner or of one of the beneficial owners of these rights. Some entities are exempt from making this declaration.

A local representative duly accredited by the Monegasque tax authorities must be appointed to accomplish such filing.

In the event of a change, a transfer tax equal to 4.5% or 7.5% of the entire value of the real property located in Monaco is owed.

Trusts, private foundations, civil companies (non-trading companies) and family offices are all common in Monaco.

Trusts

Trusts can exist under two forms.

Foreign trusts are recognised and enforced according to the provisions of the Hague Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition. This Convention expressly states that public policy may override their provisions.

In addition, the new Code of Private International Law provides that the law applicable to the trust shall not hinder the application of the law governing the succession. Hence, this kind of trust is not allowed to bypass the forced heirship rules under Monegasque law.

Trusts can also be made in accordance with Law No. 214 of 27 February 1936 which allows nationals from jurisdictions where trusts exist to set up in Monaco inter-vivos and testamentary trusts governed by their own national law.

Only entities listed by the Court of Appeal of Monaco can act as trustees for a Monaco trust. Individuals can act as co-trustees or as local representatives if they are on this list. Trustees not established in the Principality must designate a local representative. Exceptionally, the co-trustee can be freely chosen provided that they only act for a single trust.

The trustee has to be in possession of and must communicate information related to the identity of: the settlors, the trustee(s), the protector, the beneficiaries or the categories of beneficiaries, and any individual with effective control over the trust. This information is only available to specific authorities listed by law (tax, judiciary and financial).

Civil Companies (Non-trading Companies - SCP)

Civil companies can be used to manage and invest personal assets, and to own real estate, shares or bank accounts. They offer the opportunity to conceal the identities of their shareholders and beneficiaries, which are only known to the authorities.

Single and Multi-family Offices

Single family offices are not specifically regulated. Their regime will depend on the form they choose to take.

Multi-family offices are subject to Law No. 1439 of 2 December 2016 and are growing in number.

Single family offices must be incorporated as a “Société Anonyme Monégasque” (SAM) under Monegasque government policy. It is also possible to manage and invest personal assets through a “Société à Responsabilité Limitée” (SARL) or a “Société Civile Particulière” (SCP).

Multi-family offices must take the form of an SAM.

They are subject to prior authorisation by ministerial order and approval by the Financial Activities Supervisory Commission (CCAF). This kind of company is subject to a duty of confidentiality, the violation of which is punishable by criminal sanctions.

An SAM requires a minimum share capital of EUR150,000 and only general corporate information is publicly available. The identity of the families is kept confidential.

It is generally considered that only families owning assets of at least EUR100 million have an interest in creating a single family office, whereas a multi-family office generally attracts families owning more than EUR20 million each.

The beneficial owners of companies must be registered. This information is accessible to authorities listed by law (tax, judiciary and financial). Attorneys, notaries and bailiffs can also access it in the context of their reporting obligations regarding corruption, money laundering and financing of terrorism.

See 4.1 Asset Protection.

Family business planning is not affected by specific provisions concerning transfers of partial interest in an entity.

Property disputes concerning estates will generally occur when an heir believes that they have been deprived of their rights, or believes that another heir has no rights in the estate.

In the case of trusts and similar entities, disputes will often arise in the context of a contentious divorce, where one of the spouses feels aggrieved or that part of the other spouse's estate has been concealed.

In the case of trusts, contestation actions are also filed when a person is named as the beneficiary of the trust. 

There is also the question of whether or not the deceased was in full possession of their mental faculties at the time the will was drawn up or amended, or a property or sum was transferred to another person, or at the time a trust was created or amended.

This will depend on the type of action taken and what is claimed by the plaintiff.

This can range from the revocation of a gift to the invalidity of a will or the naming of a beneficiary in a trust.

Damages may also be claimed, as well as reimbursement of some of the costs incurred.

The judge retains discretion on the question, but damages, if they do not represent a real loss, are generally limited.

In Monaco, there are no fiduciary rules.

Corporate fiduciaries will, however, be subject to more stringent anti-money laundering obligations.

Only entities listed by the Court of Appeal of Monaco can act as trustees for a Monaco trust.

Individuals can act as co-trustee or as local representative if they are on this list.

Trustees not established in the Principality must designate a local representative.

Exceptionally, the co-trustees can be freely chosen provided that they only act for a single trust.

The trustee is vested with the power and entrusted with the obligation to administer, manage or dispose of the assets in accordance with the terms of the trust deed and any special rules imposed on the trustee by law.

If the trustee breaches their obligations or duties, they will be held liable.

In Monaco, there are no fiduciary rules.

Therefore, there are no specific laws in place which encourage fiduciaries to invest assets prudently.

In Monaco, there are no fiduciary rules.

Therefore, there are no particular investment theories or standards applied to the fiduciary investment of assets by the regulatory authorities.

Residency

When a person wants to stay three months or more in Monaco, a residency permit is required.

Please note that the four main ways to apply for residency in Monaco are the following:

• applying as an employee of an existing Monaco company;
• applying as a founder of a Monaco company;
• applying as a person who is able to support himself or herself financially; or
• applying as a person supported financially by somebody else.

In the case of an application made as a person able to support himself or herself financially, the applicant will need to deposit at least EUR500,000 in a bank account in Monaco.

Applying as a founder of a Monaco company does not exempt the applicant from demonstrating that they possess sufficient funds to live in Monaco, as each application is analysed on a case-by-case basis by the Monaco authorities.

Applying for residency requires that the applicant owns or rents personal accommodation in Monaco.

Sufficient funds and accommodation in Monaco are the most important aspects of the residence application.

Once the application is filed, EU nationals will be invited to an in-person interview with the Monaco Police.

Nationals of countries outside the European Economic Area (EEA) will need to apply for a long stay visa, issued by the French authorities, before applying for a Monaco residence permit.

The application is filed with the French Consulate of the applicant’s current place of abode.

For those who are already on the territory of Monaco, it is possible to apply for a permission to file for a visa with the French Consulate in Monaco, on the basis of Article 5 of the French-Monegasque Convention of 1963.

In practice, the applicant is required to request authorisation from the Monegasque Ministry of Interior to proceed on this basis.

Given that the applicant must be already present in Monaco at the time of the request, the letter must contain evidence that the applicant already has accommodation in Monaco as well as sufficient funds to live in Monaco. During the investigation process, the applicant will be invited to an in-person interview with the Monaco Police.

Once the authorisation from the Monaco government is issued, the person will be able to schedule a meeting at the French Consulate in Monaco to file the visa application. The applicant’s presence will be mandatory.

Visa and residence permit applications may take several months to be processed.

In order to be considered as a Monegasque tax resident, the resident must be present in the Principality for at least six months of the year.

The resident must then apply to the Monegasque authorities for a tax certificate.

This certificate can be requested, at the earliest, six months after the date of issue of the first resident's card.

Domicile

A person's domicile is located at their principal place of settlement, which requires a material element (physical presence) and an intentional element (the intent to primarily settle there). A person may only have one domicile. Monegasque citizens and Monegasque residents are presumed to be domiciled in Monaco, unless proven otherwise.

Citizenship

Being born or living in Monaco does not give an individual Monegasque nationality. A person is Monegasque if at least one of their parents is Monegasque at the time of birth (including cases of adoption or birth in Monaco of unknown parents).

It is also possible to acquire Monegasque nationality:

• by marriage, after twenty years of cohabitation as a married spouse; or
• by naturalisation, for anyone who has been habitually resident in Monaco for at least ten years after reaching the age of 18.

The request must be addressed to the Prince, who decides whether the person is worthy of this favour.

The person must be well integrated into Monaco’s economic, social and cultural life and/or have family ties to the Monegasque community.

The only ways to obtain Monaco citizenship are described in 7.1 Requirements for Domicile, Residency and Citizenship. There are no expeditious means for an individual to obtain citizenship.

Monaco does not have a special needs trusts regime.

However, Monaco is a Party to The Hague Convention of 13 January 2000 on the International Assistance of Adults.

Furthermore, Law No. 1474 of 2 July 2019 has amended the legislation regarding the protection of adults with incapacity. There are different regimes depending on the circumstances:

• guardianship;
• curatorship;
• legal administration; and
• judicial safeguarding.

Under this new law, individuals can anticipate their incapacity through a lasting power of attorney (“mandat de protection future”), which must be prepared by a notary, designating an agent to act as representative and guardian for them and their children during the principal’s incapacity.

For minors, guardianship and curatorship are also possible options, depending on the situation.

Appointing a guardian requires court proceedings and ongoing supervision by the court.

No specific relevant measures are currently being taken in Monaco to help families and individuals prepare financially for the impact of longer life expectancies.

Monaco law does not have any provisions regarding surrogacy and no published case law exists on the subject.

Children born out of wedlock, if they have been recognised by both parents, and adopted children will have the same rights in the estate as children born of marriage.

Monaco does not allow and does not recognise same-sex marriage.

However, Monegasque Law has quite recently adopted a civil partnership called the civil solidarity contract. It may concern same-sex couples but also mere cohabitants (such as family members) and only offers minimum rights.

Gifts between individuals bound by a civil contract are subject to a reduced taxation rate of 4%.

A civil solidarity contract may be terminated by the following circumstances:

• decease of one or both partners;
• marriage of one of the partners;
• joint declaration of the partners; or
• unilateral declaration of one partner.

See 1.2 Exemptions.

Foundations and associations are the most common charitable/philanthropic structures in Monaco.

Foundations require administrative approval and a declaration of intent before a notary.

In order to be approved, a foundation must comply with public policy and morality, as well as national security; meet a need of general interest; and have sufficient funds to fulfil its purpose.

Foundations are administered according to their bylaws and are monitored by a special commission which provides an annual report to the government with respect to each Monegasque foundation. The acceptance of some gifts by foundations must also be authorised by this commission.

The advantage is that Monegasque foundations are exempt from paying estate and gifts taxes.

There are no real disadvantages, despite the fact that the change of the beneficiaries, if not in direct line, will trigger a tax between 4.5 and 7.5% of the value the property or properties owned by the foundation.