Monaco, known for its elegance, security, and advantageous tax regime, continues to attract international families and investors. However, owning property in the Principality also raises important questions regarding succession. Whether you’re a resident, a second-home owner, or an international investor, understanding how real estate inheritance works in Monaco is essential to preserving wealth and ensuring your wishes are respected.
This article explores the key legal concepts, tax rules, and practical steps related to real estate inheritance in Monaco, with a special focus on cross-border considerations.
Monaco’s inheritance laws are governed by the Monegasque Civil Code (Articles 602–760) and Law No. 1.448 of June 28, 2017, which addresses private international law. When a property owner passes away, succession is handled by a notary who verifies the heirs, issues an affidavit, and manages the legal transfer of ownership.
Thanks to Law No. 1.448, individuals may opt for the law of their nationality to govern their succession by making this choice in a will. This is particularly relevant for international residents, allowing greater flexibility in estate planning. However, any such choice must respect Monaco’s concept of the “réserve héréditaire”, or forced heirship.
Monegasque law protects certain heirs—most notably children—by granting them a legally reserved share of the estate, regardless of testamentary provisions. The portion reserved varies depending on the number of children and cannot be overridden even when foreign law is chosen.
Though Monaco does not have a domestic trust regime, it recognizes foreign trusts under Law No. 214 of 1936 and the Hague Trust Convention. These can be effective tools in international estate planning, provided they do not infringe upon the protected shares of heirs under Monegasque law.
Monaco imposes inheritance tax only on property located within the Principality. The applicable rates vary depending on the relationship between the deceased and the heir:
0% for spouses and direct descendants
4% for civil partners (PACS)
8% for siblings
10% for uncles, aunts, nieces, and nephews
13% for other relatives
16% for unrelated heirs
Importantly, there is no wealth tax, real estate tax, or housing tax in Monaco, making it one of the most tax-friendly jurisdictions in Europe for high-net-worth families.
The 1950 Franco-Monegasque Tax Treaty provides that French citizens residing in Monaco for more than five years may benefit from Monaco’s inheritance tax rules. Real estate located in Monaco is thus generally exempt from French inheritance tax—even for French nationals—if specific conditions are met.
Unless otherwise specified, inherited property is held in joint ownership among heirs. Any heir may request partition, which can be done amicably or through court-ordered sale. All changes in ownership must be registered by a notary and may involve fees and taxes.
Monaco offers a uniquely favorable environment for estate planning, but navigating its succession laws requires care, especially for international families. By understanding the key legal principles—such as forced heirship and the choice of law—and taking advantage of available planning tools like wills and trusts, property owners can secure their legacy while minimizing taxes.
As each estate is unique, consulting with legal and tax professionals in Monaco is highly recommended to create a tailored and compliant inheritance strategy.
