2024 tax changes for French workers in Monaco
The French income tax scale has been raised by 4.8%. © Pixabay
As announced in September 2023, the tax brackets are changing in 2024 for French taxpayers.
The new income tax scale was officially published by the French government before the start of the new year. French workers in Monaco are also affected because, since the Franco-Monegasque tax treaty was established in 1963, they are subject to French rules, and therefore cannot benefit from the special tax regime with exemption from income tax, whether they are domiciled in France or in the Principality,
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This year, the income tax scale has been indexed to inflation, with an increase of 4.8%.
Here in figures are the new tax brackets decided by the French government:
- 0%: for 2023 annual income up to €11,294;
- 11%: between €11,295 and €28,797 annual income;
- 30%: between €28,798 and €82,341 annual income;
- 41%: between €82,431 and €177,106 annual income;
- 45%: annual income over €177,106.
As a reminder, the previous tax brackets were as follows:
- 0%: for annual income up to €10,777;
- 11%: between €10,778 and €27,478;
- 30%: between €27,479 and €78,570;
- 41% : between €78,571 and €168,994;
- 45%: annual income over €177,106.
In 2022, according to Monaco Statistics’ Employment Observatory, there were over 44,000 French employees in Monaco’s private sector and over 2,000 new civil servants. “For French nationals, only those who can prove that they had been resident in Monaco for five years on 31/10/1962 can benefit from Monaco’s preferential tax regime,” a former tax inspector and lawyer, David Haikel, told us in our article on Tax rules for French workers in Monaco?
As a reminder, one of the Principality’s distinguishing features is its ‘soft’ personal tax regime: the absence of any income tax is the result of an ordinance passed in 1869 by Prince Charles III. The only direct tax collected in the Principality is on profits from industrial and commercial activities. There are no wealth, property, or council taxes in the Principality.