Inheritance law in Monaco for French tax residents
2026-01-23
Inheritance law in Monaco for French tax residents
Inheritance involving assets located in Monaco is governed by specific legal and tax rules that differ significantly from those applicable in France. For French tax residents, understanding how Monaco inheritance taxation interacts with French inheritance tax rules is essential in order to anticipate liabilities, remain compliant, and avoid unexpected tax exposure.
How inheritance tax works in Monaco
Monaco applies inheritance tax according to a strict territorial principle:
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Only assets located in Monaco are subject to Monaco inheritance tax.
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The residence, nationality, or tax domicile of either the deceased or the heir has no impact on the application of Monaco inheritance tax.
As a result, Monaco taxation depends solely on the location of the asset, not on the personal situation of the parties involved.
Monaco inheritance tax rates
| Relationship | Monaco Inheritance Tax |
|---|---|
| Parents ↔ Children | 0% |
| Spouses | 0% |
| Siblings | 8% |
| Uncles / Aunts ↔ Nephews / Nieces | 10% |
| Other relatives | 13% |
| Unrelated persons | 16% |
These rates apply to all assets legally located in Monaco, including:
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Monaco real estate,
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bank accounts held in Monaco,
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shares in Monaco companies,
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any asset legally deemed to be situated in the Principality.
France taxes French residents on worldwide inheritances
If the heir is a French tax resident, French inheritance tax applies to all inherited assets worldwide, including those located in Monaco.
This rule is established under Article 750 ter of the French Tax Code (Code Général des Impôts).
Consequently, a French tax resident inheriting Monaco assets must generally:
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declare the Monaco assets to the French tax authorities,
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pay French inheritance tax according to French tax brackets,
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deduct any Monaco inheritance tax already paid, through a tax credit mechanism.
The France-Monaco iInheritance tax treaty: avoiding double taxation
The bilateral tax convention between France and Monaco ensures that inheritance is not taxed twice on the same Monaco-located asset.
How the treaty operates:
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Monaco taxes assets located in Monaco, according to Monaco inheritance tax rates.
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France taxes the worldwide inheritance if the heir is a French tax resident.
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France grants a tax credit equal to the Monaco inheritance tax already paid on Monaco assets.
Important: The treaty applies only to inheritances resulting from death. It does not apply to lifetime gifts (donations).
Example: French tax resident inheriting Monaco property
Scenario 1: inheritance from parent to child
A French tax resident inherits a Monaco apartment from a parent:
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Monaco inheritance tax: 0%
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France: inheritance taxable under French worldwide taxation rules
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Tax credit: France credits Monaco tax paid (0%)
Result: The heir pays French inheritance tax only, calculated under French law.
Scenario 2: inheritance between siblings
A French tax resident inherits Monaco property from a sibling:
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Monaco inheritance tax: 8%
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France inheritance tax: applies in full
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Tax credit: France grants a credit equal to the 8% Monaco tax paid
Result: French inheritance tax remains due, reduced by the Monaco tax already paid.
Succession options available under Monaco law
Monaco law allows heirs to choose how they accept an inheritance:
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Pure and simple acceptance: the heir accepts both assets and liabilities.
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Acceptance under benefit of inventory: liability is limited to the net value of the estate.
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Renunciation: the heir formally declines the inheritance.
These options provide flexibility and legal protection, particularly in complex estates.
Important note regarding gifts (Donations)
Lifetime gifts do not fall within the scope of the France–Monaco inheritance tax treaty.
If either the donor or the beneficiary is a French tax resident, French gift tax may apply — even when the gifted asset is located in Monaco.
This distinction makes lifetime transfers particularly sensitive from a cross-border tax perspective.
Sources
Monaco – Official Government Sources
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Government of Monaco, Droits de succession, Mon Service Public – Direction des Services Fiscaux
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Government of Monaco, Succession options: acceptance or renunciation, Mon Service Public – Registre Général
France – Official Tax and Legal Sources
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Direction Générale des Finances Publiques (DGFiP), Convention fiscale France–Monaco en matière de successions
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BOFiP, Interprétation de la convention fiscale France–Monaco, BOI-INT-CVB-MCO-30
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BOFiP, Champ d’application de la convention successorale France–Monaco, BOI-INT-CVB-MCO-30
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LEGAL DISCLAIMER
This article is provided for informational purposes only and does not constitute legal, tax or investment advice.
