Monegasque residents: what social contributions do you have to pay in France?

Social contributions on capital income are a recurring and particularly thorny question for Monegasque residents, of every nationality.

What are the criteria for being subject to social contributions?

To answer this question, two categories can be made: individuals domiciled in France for tax purposes and those who are not. 

1. Individuals domiciled in France for tax purposes: social contributions are levied at the rate of 17.2%. This rate is made up of 9.2% of Generalized Social Contribution (hereinafter "CSG"), 0.5% of Contribution to the Repayment of Social Debt (hereinafter "CRDS") and 7.5% of solidarity levy.

French nationals domiciled in Monaco have a different treatment. If they do not have a certificate of domicile for tax purposes or a declaration of proof of usual residence in the Principality issued by the Monegasque Tax Services Department, they are not, in principle, subject to social contributions.  However, there are two exceptions to this rule:

1. If they meet the criteria of French tax residence.
2. On their real estate capital gains from French sources.

2. Individuals not domiciled in France for tax purposes: social contributions are applicable to their French-source property income and their French-source property capital gains.

Please be aware that there is one exception.

For people who are covered by a social security scheme in another Member State of the European Economic Area or Switzerland, without being covered by a compulsory French social security scheme, the CSG and CRDS will not apply to their income.

These people, regardless of where they are domiciled for tax purposes (in France or abroad), will be exempt from CSG and CRDS on their income from assets and investment products, but will remain subject to the solidarity levy.