What is the tax in France of a French taxpayer installed on the Rock, in terms of income tax and IFI, and how can his children be taxed with inheritance tax?

Your tax situation varies depending on the tax in question. As far as income tax is concerned, nothing changes. Pursuant to article 7 of the Franco-Monegasque convention, you remain in France subject to tax under the same conditions as if you keep your domicile in France.

There is one notable difference, however. According to a constant case law of the Council of State (in particular on November 10, 2004, n ° 268,852), the French living in Monaco are not liable for social security contributions. You will therefore not have to pay 17.2% of contributions on your dividends, interest, securities or real estate or property income from French sources.

With regard to the tax on real estate wealth, there is no convention. It is therefore necessary to apply article 964 of the General Tax Code according to which persons domiciled abroad are taxable in France only on the property and property rights that they hold there. In other words, your Monegasque apartment will not be taxable. As for inheritance rights, a convention of April 1, 1950 distributes the right to tax between the two States.

Real estate taxed in the State of their location

Real estate is taxed in the state of its location. Your children will be taxed for French buildings according to internal law (reduction of 100,000 euros per part and progressive scale) and will be exempt for Monegasque property since there is no inheritance tax in the direct line. Other assets (stocks, shares, bonds, debts) are taxable in the State where the deceased was domiciled on the day of his death. As you will be resident in Monaco, your children will not bear any tax. Please note, in the event of a donation, the rules are not the same. As there is no fixed agreement, the French tax authorities apply article 750 ter of the CGI. As soon as the donees are domiciled in France, the duties are payable on all the goods transmitted whether they are located in France or Monaco.