Monaco's inheritance tax rates
Inheritance tax in Monaco depends solely on the family relationship between the deceased and the heir, not on the amount transmitted as in a progressive-bracket system. The scale is as follows:
Direct line (parents, children, grandchildren) and between spouses: 0%
Between siblings: 8%
Between uncles, aunts, nephews and nieces: 10%
Between other collateral relatives: 13%
Between unrelated individuals: 16%
This full exemption on direct-line inheritance sets Monaco clearly apart from its neighbours, where a family inheritance can be taxed at up to 45% above certain thresholds. It is a significant factor for any family structuring the succession of its property around the Principality.
The territorial principle behind Monaco succession law
The rule to remember is that Monaco's inheritance tax applies only to assets located in Monaco, regardless of the deceased's nationality or place of residence. An apartment, a bank account, or company shares located in the Principality fall within the scope of a Monaco succession, even if the deceased lived elsewhere. Conversely, assets held abroad by a Monaco resident generally fall outside this tax regime and follow the succession rules of the country where they are located.
The specific case of French residents
The Franco-Monegasque convention of 1 April 1950 sets out how the right to tax is divided between the two states in matters of succession. It provides that the transmission of a property located in Monaco, as part of the estate of a French or Monegasque resident, is governed solely by Monaco's inheritance rules rather than the French scale. This is precisely why so many French residents choose Monaco for their primary home: the succession of that specific property escapes France's considerably heavier inheritance taxation.
Choosing the law that governs your succession
Since law n° 1.448 of 28 June 2017, a Monaco resident can choose, by will, to have the succession law of their country of nationality apply instead of Monegasque law, governing their entire estate. Absent an explicit choice, the law of the deceased's domicile at the time of death applies by default. This option, known as professio juris, is particularly useful for an international clientele whose family and assets are spread across several countries.
Forced heirship: a limit on testamentary freedom
Monaco applies the principle of forced heirship: certain heirs, particularly children, must receive a minimum share of the estate, regardless of what a will states. A will drafted without accounting for this rule can be partially overturned once the succession is opened. This is a point every property owner in Monaco needs to factor in when drafting a will, with the guidance of a local notary.
How a succession is handled in Monaco
Upon the death of the owner of a Monaco property, the notary plays a central role in settling the succession: drawing up the certificate of heirship, valuing the assets transmitted, and filing the succession declaration with the Direction des Services Fiscaux. On top of the declaration come fees of 0.25%, plus additional notary costs generally ranging from 1% to 2% of the estate's value depending on the complexity of the case. Heirs need to gather the death certificate, any will, property titles, and bank statements to start the process.
Planning ahead for your property's succession
For a family that owns or is considering buying a property in Monaco, several tools help organise succession in advance: drafting a will compliant with Monaco law, holding the property through an SCI, which makes it easier to transfer company shares rather than a physical asset, or making a lifetime gift. Each of these options carries different implications depending on family structure and where the rest of the estate is held, which is why personalised guidance matters more than a one-size-fits-all solution.
How we help
Favourable succession rules are one of the reasons so many families choose to invest in Monaco rather than elsewhere. Our team connects you with specialised notaries and lawyers who can structure your acquisition with your succession objectives in mind. Want to factor inheritance planning into your property project in Monaco? Let's talk.
