Andorra or Monaco: the comparison for French nationals

Andorra or Monaco: the short answer for a French national

For a French national, the tax question is settled by a text: the France⁠–⁠Monaco treaty of 18 May 1963. Its Article 7 provides that French nationals who settle in Monaco remain subject to French income tax, under the same conditions as if they lived in France. The absence of income tax in Monaco therefore benefits Monegasques and other nationalities, not French nationals, except in rare cases.

Andorra has no applicable equivalent. A French national who really lives there (more than 183 days a year, or the centre of their economic interests there) becomes an Andorran tax resident within the meaning of the France⁠–⁠Andorra tax treaty: they pay Andorran income tax, at 10% at most, and France taxes only their French-source income.

Andorra⁠–⁠Monaco comparison table for a French national

Andorra or Monaco for a French national, at 15 October 2026

Criterion	Andorra	Monaco, for a French national
Income tax	Andorran tax of 0 to 10% for an Andorran tax resident	French income tax, as in France (1963 treaty, Article 7)
High incomes	No specific contribution on high incomes	French exceptional contribution and differential contribution apply
Wealth	No wealth tax	French tax on real estate wealth for French nationals who have arrived since 1989 (Article 7-3)
Company profits	Corporate income tax of 10%	Profits tax (ISB) of 25% if more than 25% of turnover is generated outside Monaco
VAT	IGI of 4.5% at the general rate	French VAT, 20% at the standard rate
Inheritance	No inheritance tax	0% in the direct line and between spouses, 8 to 16% otherwise, on assets located in Monaco
Residence permit	Status depending on the activity, within quotas: passive residency (€1,000,000 invested, €50,000 paid to the AFA), self-employed, employee…	Residence card: home in Monaco, certificate from a Monegasque bank, criminal record
Presence	90 days a year for passive residency; more than 183 days for tax residency	Card required beyond three months a year; more than 183 days, or the centre of activities, for a tax residence certificate
Price per m²	€4,569.7 for a flat (second quarter of 2026)	€57,569 (2025, all homes excluding villas, new IMSEE method)
Taxes on purchase	Property transfer tax of about 4%, with the 6% foreign investment tax on top for a non-resident or a new resident	4.5% if the buyer meets the transparency criteria, 7.5% otherwise
European Union	Outside the EU; association agreement to be signed on 19 October 2026, not yet in force	Outside the EU; EU customs territory; association negotiations suspended in 2023

Sources: tax treaties, Prince’s Government, IMSEE, Departament d’Estadística of Andorra. French rules on French-source income apply in both cases.

French nationals in Monaco: what the 1963 treaty provides

Article 7 of the treaty applies directly: French nationals domiciled in Monaco declare their income to the individual taxpayers’ tax office in Menton, according to the guidance published by the French tax authorities. It covers any person of French nationality who transfers their domicile or residence to Monaco, with limited exceptions:

• French nationals who transferred their habitual residence to Monaco before 13 October 1957 and have kept it there (five years of residence at 13 October 1962);
• French nationals born in Monaco who have lived there continuously since birth;
• French nationals married to a Monegasque national, and certain minor children, since the exchange of letters of 26 May 2003;
• members of the Sovereign Household and Monegasque public servants who settled in Monaco before 13 October 1962.

For everyone else, French taxation goes beyond income tax:

• tax on real estate wealth: French nationals who have settled in Monaco since 1 January 1989 are subject to it in the same way as residents (Article 7-3, introduced by the 2003 amendment), above the threshold of €1,300,000;
• high incomes: the exceptional contribution and the differential contribution on high incomes apply to French nationals living in Monaco who are taxed in France, according to the BOFiP;
• CSG and CRDS: they are not due under Article 7, which covers only income tax, unless the person remains domiciled in France within the meaning of Article 4 B of the French General Tax Code;
• inheritance: a separate convention, of 1 April 1950, treats a French national as domiciled in Monaco after five years of habitual residence; real estate remains taxed in the State where it is located. Gifts are outside its scope: French law applies, in particular when the recipient has been domiciled in France for six of the last ten years.

Andorra: a French national can become a tax resident there

The France⁠–⁠Andorra treaty, signed on 2 April 2013, does contain a nationality clause (Article 25), which would allow France to tax its nationals living in Andorra. But this clause can only take effect through a French law, and none exists at 15 October 2026; the latest amendment to that effect, examined for the 2027 budget, was rejected in committee on 7 October 2026. The details are in our guide to the nationality clause of the France⁠–⁠Andorra treaty.

You still have to be genuinely resident. The residence permit is not enough: you need to spend more than 183 days in Andorra, or to have the centre of your economic interests there, and to give up your French tax domicile within the meaning of Article 4 B. These conditions are detailed in our guide to tax residency in Andorra and in our guide to leaving France for tax purposes.

The cost of moving: two different scales

In Monaco, the published texts set no minimum investment for the residence card, but you need a home there and a certificate from a Monegasque bank, and the amount deemed sufficient depends on the bank. Housing accounts for most of the cost: €57,569 per m² on average in 2025 according to IMSEE, more than €70,000 in Larvotto.

In Andorra, the cost depends on the status. Passive residency requires €1,000,000 invested in the country and €50,000 paid to the AFA, for good, but housing is about twelve times cheaper per m² than in Monaco (indicative calculation: €57,569 divided by €4,569.7). The sums to budget for under each status are brought together in our guide to the cost of residency in Andorra.

And for a national of another country?

The conclusion changes. Article 7 of the 1963 treaty covers only French nationals: a Belgian, an Italian or a British national living in Monaco pays no income tax there, subject to the rules of their country of origin. For them, the comparison is mainly about the cost of living, the presence required and company taxation, where Andorra taxes profits at 10%.

Which choice for your situation?

In both cases, France keeps the right to tax French-source income, such as rent from a property located in France, and the exit tax may apply on departure. To compare your income tax in France and in Andorra, use our comparison tool.