DA-Tax
Working in Monaco
This article is for general information only. You should not act or refrain from acting in reliance of it. You should always obtain professional advice on the facts of your particular case. Nothing in this article constitutes financial advice. The owner of this site accepts no liability.
If you move to Monaco to work you have three options for residence. Either live in Monaco, France or Italy. Most workers commute daily into Monaco which is easy.
Residence in Monaco involves high overheads and a high rise lifestyle. It is also more problematic with HMRC because there is no tax treaty between the UK and Monaco with a "tie breaker" clause to help you establish that you are no longer UK resident.
In many cases residence in Italy will be attractive for high earners. Italy has various tax exempt regimes for people who are resident but do not work in Italy. One allows Italian residents to pay a flat €100.000 tax per annum regardless of their income provided they do not work in Italy. It is possible to get a clearance from the Italian tax authorities.
It also has the advantage of the UK Italian tax treaty to give you protection. HMRC is also less likely to investigate whether you are still UK tax resident if you move to a treaty country.
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