French taxpayers are subject to major changes to the tax code for the upcoming 2024 year. The news comes after the French government announced new income tax rates, marking a break with the current fiscal framework and paving the way for changes in fiscal responsibility.
The 2022 statistics published by the Monaco Statistical Employment Observatory paint a good picture of the importance of French workers in Monaco’s private sector. More than 44,000 French workers work in the business sector. Additionally, the arrival of more than 2,000 new employees shows that employment continues to expand in the Principality.
Mentioned below are the new tax brackets announced 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
Former tax inspector and lawyer David Haikel exposes the absurdity of Monaco’s tax laws for French citizens. Only those who can prove that they have lived in Monaco for five years since October 31, 1962, can benefit from the presidential tax privilege.
As a reminder, Monaco has a unique feature that makes it valuable on the world financial scene: its “soft” autonomy. This system, embodied in a decree issued by Prince Charles III in 1869, did not impose taxes on income. However, it is worth noting that only direct taxes imposed by the president affect profits from business and trade. Importantly, Monaco is also free from the burden of wealth, property or municipal taxes, supporting its position as a unique destination for those looking for a tax-friendly environment.
The tax reform for French workers in Monaco is a turning point with historical conventions as inflation has been taken into account, current events and ongoing changes in terms of financial management. As 2024 dawns, the new rules mark the first of a series of financial negotiations that will determine the financial fate of French residents.