When handling vacancies in Monaco, we’re often asked by those new to the location, about the relative benefits of living France vs Monaco. A very kind client based in Monaco recently gave us his take on the options, which we’ve summarised below.
Quite simply, it’s a balancing act, based on a cost v. benefit equation. If you live in Monaco then you pay no tax as such on your earnings (but see below on Government “social charges”) but the cost of renting an apartment in Monaco is more than if you live just over the border in France (say Beausoleil and walk into Monaco each day as a lot of people do).
If you live in France, the cost of renting an apartment is much cheaper, but you will pay more in income tax in France. Someone earning around EUR110-120K p.a. is likely to pay around 22% income tax in France.
There is a Government employee “social charge” in Monaco of around 13% which is deducted at source from your pay-slip, monthly. That is a bit like National Insurance in the UK.
In Monaco you can rent a very small (but nice) studio or very small one-bed apartment for around EUR3,500 – EUR4,000 (in one of the suburbs like Moneghetti, Jardin Exotique, or the end of Larvotto). In France, just over the border in Beausoleil, you can get a nice two-bed apartment for around EUR1,750 – EUR1,900.
So it’s a balancing act as to whether the individual feels they are better off by paying less “tax” in Monaco but more expensive accommodation costs, or more tax in France and much cheaper accommodation costs. At the example salary level given above, France is the winner by a reasonable distance.
