Monaco is the ultimate symbol of zero taxation: no income tax, the playground of great fortunes. But behind the postcard, two realities change everything: the cost of entry and an exception aimed squarely at French nationals. Andorra tells a different story.
Monaco: 0%, Reserved for an Elite (and Not for French Nationals)
Monegasque residents pay no income tax — that has been true since 1869. No wealth tax either. But two major caveats apply: first, French nationals remain taxable in France (1963 treaty) — the 0% simply does not work for them. Second, obtaining residency requires a bank deposit of around 500,000 € plus accommodation on 2 km² where rents rank among the highest in the world. The 0% is real, but reserved for an elite — and closed to French nationals.
Andorra: Accessible, and It Works for French Nationals
Andorra does not offer 0%, but a maximum of 10% — often considerably less in practice — with no wealth tax and no inheritance tax. Above all, unlike Monaco, a French national can establish genuine tax residency there, governed by the 2013 Franco-Andorran tax treaty. All of this at a fraction of Monaco's cost, with space, nature, and far more attainable residency. For virtually every profile, the equation is unbeatable.
The Comparison, Figure by Figure
| Criterion | Andorra | Monaco |
|---|---|---|
| Income tax (max) | 10 % | 0% (except French nationals) |
| Works for a French national? | Yes (2013 treaty) | No (taxed by France) |
| Residency access | From 1 M€ (or 800 k€ in property) | Deposit ~500 k€ + extreme rents |
| Corporate tax | 10 % | 25% (activity outside Monaco) |
| Wealth & inheritance tax | None | None (direct line) |
| Cost of living / real estate | High but reasonable | Among the most expensive in the world |
| Indicative rates for 2026. The 1963 Franco-Monegasque treaty maintains French taxation of French nationals residing in Monaco. | ||
The Verdict: Who Is Each For?
Monaco retains its allure for very high-net-worth non-French individuals who prize the prestige and the strict 0%, and are willing to pay the world's most expensive real estate. For everyone else — and for every French national — Andorra stands out: near-zero effective taxation, accessible, at a reasonable cost, and fully operational for French residents. Where Monaco closes the door, Andorra opens it.
Key Takeaways
- Monaco: 0% income tax, but not for French nationals (1963 treaty)
- Monaco access: deposit ~500 k€ + rents among the highest in the world
- Andorra: 10% max, accessible, and genuine tax residency available to French nationals
- For a French national, Andorra is the only one of the two that truly delivers
Are you French and had Monaco in mind? Andorra is probably your real answer. Discover tax residency and our tax advantages.
