Living in Monaco comes with many benefits, including a favorable tax environment. However, many French nationals residing in Monaco still fall into common traps—especially when it comes to inheritance planning. If you’re looking to preserve your wealth and minimize tax exposure, here are two effective strategies to optimize French inheritance tax on real estate.
🏠 1. Buy French Property Through a Monegasque SCI
Purchasing property in France in your personal name subjects you to French inheritance tax, which can be substantial. A more strategic alternative is to use a Monegasque Société Civile Immobilière (SCI) to hold the asset.
✅ Why it Works:
According to the France–Monaco Tax Treaty of May 18, 1963, shares in a Monegasque SCI fall under Monaco’s inheritance rules and are exempt from French succession tax. This principle was reaffirmed by the French Court of Cassation in 2015.
💡 Key Benefits:
✅ No inheritance tax for direct heirs.
✅ Discreet and manageable ownership structure.
✅ Asset protection from French tax exposure.
⚠️ Important Considerations:
The SCI must not be “artificial.” It must be genuinely managed from Monaco.
If heirs are not Monaco residents, they may still be liable for French inheritance tax.
🏗️ 2. Buy Property in Monaco for Full Tax Exemption
Another highly effective (and underused) strategy: buy real estate directly in Monaco.
✅ Why It’s Powerful:
Thanks to the Franco–Monégasque Treaty of April 1, 1950, properties located within Monaco are not subject to French inheritance tax. This provides total exemption for Monaco residents.
📝 Conditions to Meet:
✅ The exemption applies regardless of nationality.
✅ There’s no limit on the value of the inheritance.
⚠️ French nationals who moved to Monaco after 1957 remain taxable on worldwide income—but this does not affect inheritance tax.
💰 Bonus Advantage:
Buying new property in Monaco also brings lower acquisition costs, adding to the overall tax efficiency.
🔐 3. Final Thoughts: Structure Your Wealth Wisel
Proper structuring of your real estate holdings can significantly reduce or even eliminate inheritance tax exposure for French nationals living in Monaco. Whether you’re investing in France or Monaco, strategic planning is key.
🏡 Findr. by Interalia specializes in Monaco-based real estate and inheritance tax optimization. Let us help you secure your future—and that of your heirs. 📩 Contact us today to learn more and find more insights and stories on our website.
