---
title: "Andorra or Monaco: which to choose if you are French? (2026)"
url: https://andorrefiscal.fr/en/tax/andorra-or-monaco
description: "Andorra or Monaco? In Monaco, a French national remains subject to French tax (1963 treaty); in Andorra, 10% at most. Costs, conditions."
updated: 2026-10-15
language: en
publisher: Andorre Fiscal (https://andorrefiscal.fr)
---

# Andorra or Monaco: the comparison for French nationals

> Markdown version of the page https://andorrefiscal.fr/en/tax/andorra-or-monaco (Andorre Fiscal), up to date as of 15 October 2026. To cite this page, use its address: https://andorrefiscal.fr/en/tax/andorra-or-monaco

Monaco levies no income tax, but a French national who settles there continues to pay French tax, as if they lived in France, under a 1963 treaty. Andorra, for its part, allows a French national to become an Andorran tax resident, taxed at 10% at most, provided they really live there. Here is the comparison, point by point.

By [the Andorre Fiscal editorial team](https://andorrefiscal.fr/en/about#redaction) · Verified on 15 October 2026 · [12 official sources](https://andorrefiscal.fr/en/tax/andorra-or-monaco#sources)

- **1963** treaty that keeps French nationals in Monaco subject to French tax
- **10%** maximum rate of income tax in Andorra
- **€57,569** per m² in Monaco in 2025 (IMSEE)
- **€4,569.7** per m² for a flat in Andorra (second quarter of 2026)

## Key points

- Monaco levies no income tax at all, but the France–Monaco tax treaty of 18 May 1963 keeps French nationals who settle there subject to French income tax, as if they lived in France.
- Only a few categories escape it, such as French nationals who settled in Monaco before 13 October 1957, those who were born there and have always lived there, or the spouses of Monegasque nationals.
- French nationals who have arrived in Monaco since 1989 also remain subject to the French tax on real estate wealth, and the differential contribution on high incomes applies to them.
- In Andorra, a French national can become an Andorran tax resident, taxed at 10% at most: the nationality clause of the 2013 treaty has no effect in the absence of a French law.
- The scale of costs differs: €57,569 per m² in Monaco in 2025, compared with €4,569.7 for a flat in Andorra in the second quarter of 2026.

## 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](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty): they pay [Andorran income tax](https://andorrefiscal.fr/en/tax/andorra-income-tax), at 10% at most, and France taxes only their French-source income.

> Individuals of French nationality who move their domicile or residence to Monaco […] shall be subject in France to personal income tax […] under the same conditions as if they had their domicile or residence in France.
>
> — [France–Monaco tax treaty of 18 May 1963, Article 7-1 (free translation)](https://www.impots.gouv.fr/sites/default/files/media/10_conventions/monaco/convention_avec_monaco_modifiee_par_la_cml.pdf)

## 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](https://andorrefiscal.fr/en/tax/andorra-corporate-tax) of 10% | Profits tax (ISB) of 25% if more than 25% of turnover is generated outside Monaco |
| VAT | [IGI](https://andorrefiscal.fr/en/tax/andorra-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](https://andorrefiscal.fr/en/residency/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.

> **Common misconception: “Moving to Monaco is enough to stop paying income tax.”**
>
> **In fact.** Not for a French national: Article 7 of the 1963 treaty keeps them subject to French income tax, as if they lived in France. The rule has applied for more than sixty years, and the Conseil d’État clarified its scope in 2014.

## 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](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty#nationalite).

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](https://andorrefiscal.fr/en/tax/tax-residency) and in our guide to [leaving France for tax purposes](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency).

## 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](https://andorrefiscal.fr/en/residency/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](https://andorrefiscal.fr/en/residency/costs-afa-deposit).

## 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?

**French national — Monaco**

- French income tax still due, except in rare cases
- IFI and contribution on high incomes applicable
- Housing among the most expensive in Europe

**French national — Andorra**

- Andorran tax residency possible: tax of 10% at most
- Status to be chosen according to the activity, within the quotas
- Genuine life on site required, and French rules to follow on departure

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](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency#exit-tax) may apply on departure. To compare your income tax in France and in Andorra, use our comparison tool.

Getting professional help

If Andorra fits your plans, the choice of residency status and the application need to be prepared several months in advance. For support in French, you can turn to **AndorreGestoria.fr**, a French-speaking gestoria.

[Contact AndorreGestoria.fr](https://andorregestoria.fr/)

## Frequently asked questions

### Can a French national live in Monaco without paying income tax?

As a general rule, no. Article 7 of the France–Monaco tax treaty of 18 May 1963 provides that French nationals who transfer their domicile or residence to Monaco remain subject to French income tax under the same conditions as if they lived in France. They declare their income to the individual taxpayers’ tax office in Menton. Only a few categories escape it: French nationals who settled in Monaco before 13 October 1957, those born in Monaco who have always lived there, spouses of Monegasque nationals, certain Monegasque civil servants.

[Read: French nationals in Monaco: what the 1963 treaty provides](https://andorrefiscal.fr/en/tax/andorra-or-monaco#convention-1963)

### Why do French nationals in Monaco pay French tax, but not those in Andorra?

Because the two treaties do not work in the same way. Article 7 of the France–Monaco treaty applies directly, without any other text: the tax authorities have applied it since 1963. The 2013 France–Andorra treaty contains a nationality clause (Article 25), but it can only take effect through a French law, and none exists at 15 October 2026.

[Read: France–Andorra tax treaty › The nationality clause (Article 25): written, but inoperative](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty#nationalite)

### Does Monaco have an income tax?

No. According to the Monegasque government, the absence of income tax stems from an ordinance of 1869; nor is there any wealth tax, property tax or housing tax. The only exception concerns French nationals, who are taxed in France under the 1963 treaty.

### How much does a flat cost in Monaco?

According to the property observatory of IMSEE, Monaco’s statistics office, the average price stood at €57,569 per m² in 2025, and at €71,167 in the Larvotto district. This figure is based on a new method, which includes new-builds and resales: it cannot be compared with the averages published in previous years. In Andorra, a flat sold for an average of €4,569.7 per m² in the second quarter of 2026.

[Read: Buying property](https://andorrefiscal.fr/en/living-in-andorra/buying-property)

### What are the conditions for obtaining a residence card in Monaco?

Anyone aged at least 16 who wants to stay in Monaco for more than three months a year must apply for one. You need in particular a home in Monaco (a title deed, or a lease registered with the Department of Tax Services), a bank certificate from a Monegasque institution, the sufficient amount of which depends on the bank, and an extract from the criminal record of each country of residence over the last five years.

### Is Monaco part of the European Union?

No. Monaco is part of the European Union’s customs territory, uses the euro and gives access to the Schengen area, according to its government, but its negotiations on an association agreement with the EU were suspended in 2023. Andorra, for its part, is due to sign its own on 19 October 2026.

[Read: Andorra–EU association agreement: signing announced for 19 October](https://andorrefiscal.fr/en/news/eu-andorra-association-agreement)

## Sources

1. [France–Monaco tax treaty of 18 May 1963, consolidated version (impots.gouv.fr)](https://www.impots.gouv.fr/sites/default/files/media/10_conventions/monaco/convention_avec_monaco_modifiee_par_la_cml.pdf) — Article 7: taxation in France of French nationals domiciled in Monaco; Article 7-3: wealth tax; ISB and VAT.
2. [BOFiP: BOI-INT-CVB-MCO-10 of 2 June 2021 (Monaco, income tax)](https://bofip.impots.gouv.fr/bofip/12995-PGP.html/identifiant=BOI-INT-CVB-MCO-10-20210602) — People covered and excluded, Menton tax office, IFI, exceptional contribution, CSG and CRDS.
3. [BOFiP: BOI-IR-CDHR-10 of 30 June 2026 (differential contribution on high incomes)](https://bofip.impots.gouv.fr/bofip/15095-PGP.html/identifiant=BOI-IR-CDHR-10-20260630) — Application to French nationals living in Monaco who are taxed in France (§ 40).
4. [Conseil d’État, 11 April 2014, No. 362237](https://www.legifrance.gouv.fr/ceta/id/CETATEXT000028855931) — Scope of Article 7 of the France–Monaco treaty.
5. [BOFiP: BOI-INT-CVB-MCO-30 of 2 June 2021 (Monaco, inheritance)](https://bofip.impots.gouv.fr/bofip/12961-PGP.html/identifiant=BOI-INT-CVB-MCO-30-20210602) — Convention of 1 April 1950: domicile after five years of residence, real estate taxed in the State where it is located.
6. [Monaco, Mon Service Public: Monegasque taxation (updated on 27 August 2026)](https://monservicepublic.gouv.mc/thematiques/fiscalite/informations-sur-la-fiscalite/informations-generales/la-fiscalite-monegasque) — No income tax, wealth tax, property tax or housing tax.
7. [Monaco, Mon Service Public: inheritance tax (updated on 30 July 2026)](https://monservicepublic.gouv.mc/thematiques/fiscalite/informations-sur-la-fiscalite/informations-generales/droits-de-succession) — Rates from 0 to 16% depending on the family relationship, on assets located in Monaco.
8. [Monaco, Mon Entreprise: profits tax (updated on 3 August 2026)](https://monentreprise.gouv.mc/thematiques/obligations-legales-et-fiscalite/fiscalite/autres-impots-et-taxes/impot-sur-les-benefices) — ISB of 25% for businesses generating more than 25% of their turnover outside Monaco.
9. [Monaco, Mon Service Public: applying for a residence card (updated on 25 September 2026)](https://monservicepublic.gouv.mc/thematiques/nationalite-et-residence/residence/nouveaux-arrivants/demander-une-carte-de-sejour) — Stay of more than three months a year, housing, bank certificate, criminal record.
10. [IMSEE: Real Estate Observatory 2025 (February 2026)](https://imsee.mc/content/download/293646/file/Observatoire%20de%20l%27immobilier%202025.pdf?inLanguage=fre-FR&version=11) — Average price of €57,569 per m² in 2025, new method; prices by district.
11. [Prince’s Government: Monaco and the European Union](https://www.gouv.mc/action-gouvernementale/conforter-la-situation-de-monaco-a-l-international/monaco-et-l-union-europeenne) — EU customs territory, euro area, association negotiations suspended in 2023.
12. [France–Andorra tax treaty (Decree No. 2015-878, Légifrance)](https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000030907404) — Residence within the meaning of the treaty, Article 25 (nationality clause).

Consolidated texts on the Portal jurídic d’Andorra have no official value: only the version published in the BOPA is authentic. [How we verify](https://andorrefiscal.fr/en/methodology).

**General information, not advice.** This guide sets out the rules in force on 15 October 2026, based on official texts. It is no substitute for a professional review of your situation (lawyer, tax adviser, gestoria).

## Further reading

- [Andorra vs France taxes](https://andorrefiscal.fr/en/tax/andorra-vs-france-taxes): The main taxes side by side
- [France–Andorra tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty): Who taxes what: signed in 2013, in force since 2015
- [Tax residency](https://andorrefiscal.fr/en/tax/tax-residency): 183 days, centre of interests, dual residency
- [Types of residency](https://andorrefiscal.fr/en/residency/residency-types): Every status compared
- [Leaving France for tax purposes](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency): Year of departure, tax returns, exit tax
- [Cost of living](https://andorrefiscal.fr/en/living-in-andorra/cost-of-living): Taxes, inflation, budget items