Alessandra Vicedomini
Amid the shifting tides of economic uncertainty in France, there is an increasing allure for those seeking stability, security, and a more favourable environment to establish themselves—and among the most coveted destinations is Monaco. At a time when the French are navigating a labyrinth of rising taxes and looming fiscal changes, the principality presents an appealing contrast with its steady, welcoming approach to both business and personal wealth management.
Monaco, often regarded as a haven for the wealthy, has increasingly attracted not only the affluent retirees or inherited wealth of the past but, notably, a new wave of entrepreneurs and professionals. This shift in demographics highlights the principality’s modern appeal—its promise of a stable legal and economic environment, perfect for innovation, business development, and securing one’s financial future. A climate where France’s tax system feels ever more burdensome versus transparency that many are yearning for.
Renowned for its low crime rate, which, in a time of growing concerns about safety, becomes an attractive feature for families seeking a peaceful, secure environment, the climate, blessed with over 300 days of sunshine a year, is an undeniable bonus enhancing the quality of life.
For those considering wealth transfer, the fiscal framework provides yet another compelling reason to relocate. Unlike France, where inheritance taxes can be steep—particularly for non-immediate family members—Monaco boasts a highly advantageous system for successions. Here, there is no inheritance tax between spouses, or between grandparents and grandchildren. For those with significant estates, the tax advantages are profound, providing the opportunity to preserve wealth across generations without the encumbrance of heavy levies. Unparalleled advice in global estate planning, engineers solutions for those seeking to optimize their financial circumstances while maintaining ties to their home country became very precious.
Let’s not forget the tax treaty with France, which ensures that while French citizens residing in Monaco are subject to French income and property taxes, they are not liable for the French social charges—resulting in a more favourable tax burden overall.
The decision to move, however, is not one to be made lightly. There are long-term implications—both fiscally and personally, especially in the event of life changes, such as a divorce, and would require careful consideration of both tax and civil law consequences. Thus, a meticulous, well-informed analysis of the potential benefits and risks needs to be elaborate for any French citizen willing to move to Monaco, and is essential before making such a substantial shift.
XLNC ARCHIVE| 24 February 2025