Is Monaco 100% tax free?

No, not entirely. Monaco has no personal income tax for residents (except French citizens, who remain liable under the 1963 Franco-Monégasque convention) and no general wealth tax, capital gains tax, or inheritance tax on direct heirs. That is the core of the tax-residency draw. But Monaco does levy: a 20 percent VAT on most goods and services (harmonised with France); business profits tax on companies earning more than 25 percent of turnover outside Monaco (currently 25 percent); inheritance and gift tax on transfers outside the direct family line (rates up to 16 percent); registration duties on property transfers; and social contributions on Monaco-based employment. US citizens remain liable for US federal tax on worldwide income regardless of Monaco residence. For most non-French, non-US residents in finance or independent wealth, Monaco’s tax position remains highly favourable in net terms. For the full cost picture, see our Monaco cost of living page.