Retiring in Monaco: Residence Permit, Taxation of the Pension and Access to Care

A French national may stay in Monaco without a visa for up to three months. For a longer residence, a residence permit is needed, issued by the Direction de la Sûreté Publique, on the basis of an identity document or a valid passport. The file, presented by MonServicePublic, rests on three pillars: proof of housing sufficient for the household (ownership, rental, or accommodation with a relative with a certificate from the Sûreté Publique), proof of sufficient means (pension, savings or support), which is assessed case by case by the reference Monegasque bank and gives rise to a certificate less than one month old, and a criminal record extract less than three months old.

The permit is renewed on presentation of proof of means of subsistence (a bank certificate from a Monegasque establishment, for example), the latest electricity bill for the accommodation and, for a tenant, the latest rent receipt. The amount of savings considered sufficient is not published: it depends on the bank issuing the certificate. The documents should be confirmed with the Residents Section before any filing.

Monaco levies no income tax on people domiciled there, but article 7-1 of the Franco-Monegasque tax agreement of 18 May 1963 may subject to income tax in France, as if they were domiciled there, French nationals who transfer their domicile or residence to Monaco or who cannot show five years of habitual residence in Monaco at 13 October 1962 (BOFiP). This applies to all income, including the retirement pension, whatever its source. Outside the scope of article 7-1 are French nationals permanently settled before 13 October 1957, those who were born in Monaco and have constantly resided there, and members of the sovereign household.

The retiree concerned is taxed in France like a taxpayer domiciled in France, subject to the differential contribution on high incomes where applicable. The certificate of domicile issued by the Monegasque authorities (valid three years) does not by itself guarantee exclusion from article 7-1: the situation should be confirmed with the non-resident individuals tax service before settling.

The Franco-Monegasque agreement of 28 February 1952 covers the care received in Monaco by a French retiree who has no entitlement open under the Monegasque scheme. They register with the Caisse de Compensation des Services Sociaux to obtain reimbursement of sickness-maternity insurance care; registration also applies to family members living with them. The file includes proof of residence in Monaco, the pension certificate (or a certificate in its place) and a certificate from the French old-age fund establishing the right to care on that basis (CLEISS).

As the retiree is no longer attached to the French scheme, their pension no longer bears French social levies; they remain subject to a health insurance contribution under Monegasque legislation. During a temporary stay in France, unforeseen care remains covered and is reimbursed by the Monegasque fund. Detailed reimbursements are in the page healthcare reimbursement in Monaco, and the guide health insurance for retirees abroad presents comparable situations.

For employees, the Caisse Autonome des Retraites (CAR) pays a direct pension. The normal age is 65; an early pension is possible from age 60 with an activity period of at least 10 years, i.e. 60 months of actual or equivalent activity, with periods in France or Italy able to count. A woman who has raised at least three children for eight years before their sixteenth birthday may claim it from age 55. The pension increases by 1.5% per full quarter of deferral after 65, up to a limit of 30% reached at age 70. An employee who does not meet the duration conditions can obtain, at 65, a refund of their employee contributions (Caisses Sociales de Monaco, CLEISS).

For the self-employed, CARTI opens the pension from age 65, even if the insured person keeps working, with 120 months of contributions (or 60 months spread over at least 15 years for seasonal activity); before 65, only a medically recognised incapacity opens an early right from age 60. The number of points depends on the contribution class chosen. These rules should be confirmed on the Caisses Sociales website.

The retiree’s CCSS registration applies to the family members who live with them. A spouse who receives no pension comes under the same registration, subject to proof of residence in Monaco. Each person over 16 must, however, hold their own residence permit, minors under 16 not receiving one; a travel document for foreign minors may be issued for their travel (MonServicePublic).

During a temporary stay in France, relatives’ care follows the rules of the Monegasque fund. In case of a permanent return to France, the CPAM (the French health insurance fund) of the place of residence examines the rights on the basis of the pension certificate and the certificate from the Monegasque fund, the procedures being the reverse of those for departure (CLEISS).

The “Economic indicators” block above gives the economic indicators. The minimum wage of the order of €12 an hour (about €2,080 a month for 39 hours) serves as a local benchmark. Housing is the precondition of the residence permit and the main expense: prices are not reproduced here for lack of an official publication read, and IMSEE publishes population and employment data. The annual edition of “Monaco in figures” indicates that residents of French nationality represent about 21% of the resident population, an established community.

Current health spending represents about 3% of GDP, with about 8% borne directly by households, and life expectancy at birth is about 86 years (World Bank). A retiree usefully compares the cost of housing, taxation (article 7-1) and supplementary health cover before deciding.

The Principality has a few districts (Monaco-Ville, Monte-Carlo, La Condamine, Fontvieille, Larvotto) on a very dense territory. Rescue services can be reached on 18 or 112, the police on 17, and 141 gives the on-call doctors and pharmacies; the adult emergency department of the Centre Hospitalier Princesse Grace is open 24 hours a day (+377 97 98 97 69). France Diplomatie (the French foreign ministry) places the country at normal vigilance, with very low ordinary crime. Cycling is discouraged because of traffic, and the Larvotto beach is protected by anti-jellyfish nets.

See the page living in Monaco for schooling and formalities, and the page healthcare system in Monaco for access to care.

• Inform your pension fund, the CPAM, the CAF and the tax office, and ask the old-age fund for the certificate of entitlement to care.
• Put together the residence permit file: housing, Monegasque bank certificate less than one month old, criminal record less than three months old.
• Have your tax situation examined with regard to article 7-1 with the French administration.
• Register with the CCSS with the pension certificate and the certificate from the pension fund, then on the register of French nationals established outside France.
• Arrange supplementary or international insurance for costs not reimbursed and for medical repatriation.

See also the guide retirement abroad.