Residency vs. Monegasque nationality: understanding the difference

In the imagination of many expatriate candidates, Monaco is a state synonymous with prestige and tax advantages, which often leads to confusing Monegasque residence with Monegasque nationality. However, these are two very distinct legal statuses, with very different conditions for obtaining it and implications. Before starting the process of moving to the Principality, it is essential to unravel the confusion between residence and Monegasque citizenship. This article offers you an in-depth explanation, in a pedagogical and refined style, in order to clarify these notions aspiring to settle in Monaco. (For the practical details of obtaining a resident card, we invite you to consult our dedicated article on how to become a Monegasque resident, which we will not detail again here.)

In short, being a Monegasque resident means having a right to reside in Monaco as a foreigner, while being a Monegasque refers to Monegasque citizenship (nationality). It is important to note that neither the fact of residing in Monaco nor the fact of being born there automatically entitles one to Monegasque nationality. In other words, giving birth in Monaco does not confer citizenship on the newborn if the parents are not themselves Monegasques. Only an extreme minority of residents ever attain nationality, as it is so rare and reserved. Here is in more detail what distinguishes these two statuses.

Monegasque residency status: what is residency in Monaco?

Obtaining residence in Monaco means that you become a Monegasque resident, i.e. holder of a long-term residence permit issued by the Monegasque authorities. In concrete terms, this status takes the form of a residence permit (sometimes called a residence permit). There is a difference in procedure on how to apply from and outside Europe, we also detail this procedure in a separate article. In any case, anyone over the age of 16 who wishes to stay in Monaco for more than three months a year or to settle there permanently must apply for a residence permit. This obligation applies to nationals of all countries wishing to settle in the Principality.

Terms and conditions : Monaco welcomes residents of all nationalities, subject to meeting certain strict conditions. In all cases, the applicant must be able to prove that they have suitable accommodation on Monegasque territory (as an owner, tenant, or person hosted by a third party), and have sufficient financial resources (professional income, savings or support from a spouse or parent). We have also detailed what is the minimum to live in Monaco, in this article you will discover the non-official conditions established by Monegasque banks. To obtain residency, you must also present a recent clean criminal record. These requirements are intended to ensure that the future resident is able to support themselves and be self-sufficient in this microstate with a very high standard of living.

Differences by nationality of origin : The terms and conditions for obtaining residency vary depending on the applicant's citizenship. Nationals of the European Economic Area (EEA, which includes the European Union, Switzerland, Norway, etc.) benefit from simplified procedures and do not need a prior visa to settle in Monaco. On the other hand, nationals of countries outside the EEA must, before being able to apply for a residence permit, obtain a long-stay visa for Monaco (type visa D) from a consulate of France (Apply for a residence permit). For example, since Brexit, British citizens are considered to be third-country nationals: they no longer enjoy the freedom of establishment and must comply with the visa formalities applicable to non-EEAs. Although the procedure differs administratively, Monaco does not impose any nationality restrictions on the right to settle there: American millionaires, Swiss families, South African entrepreneurs or Canadian retirees can all become Monegasque residents if they meet the required conditions.

Duration and renewal : Residency status is not temporary, it can be extended over the long term provided that the criteria for establishment are met. The first Monegasque residence permit issued is generally of the "temporary" category and valid for one year. It is renewable (against payment of moderate fees) if the resident actually maintains his or her residence in the Principality. After several renewals and three years of continuous residence, a foreigner can obtain an "ordinary" residence permit valid for three years. Finally, after ten years of effective presence in Monaco, the resident is entitled to a "privileged" residence permit valid for 10 years. These durations reflect Monaco's desire to promote the long-term stability of its residents. It should be noted that there is also a specific "Monegasque spouse" card (valid for 5 years) for people married to a Monegasque citizen and living in the Principality. In short, Monegasque residency offers great durability : as long as you comply with the residence obligations, your permit is renewable indefinitely, allowing you to enjoy the Monegasque lifestyle for the long term (security, climate, advantageous taxation, etc.) without changing your nationality.

Important : Monegasque residents remain legally citizens of their country of origin. For example, a Swiss or Belgian resident in Monaco keeps his or her Swiss or Belgian passport and does not become a Monegasque for all that. The residence permit gives you the right to live in Monaco and to benefit from the attractive tax regime (no personal income tax, except in the special case of French nationals), but does not give you a Monegasque passport or the right to vote locally. Unlike a Monegasque citizen, a foreign resident does not have access to certain services reserved for nationals (we will come back to this) and must ensure that his residence permit is renewed. Nevertheless, in everyday life, a long-term resident enjoys a comfortable integration in the Principality, where more than 70% of the total population is made up of foreigners. In 2023, Monaco had about 29,188 foreign residents for only 9,179 Monegasques of nationality. Residency status is therefore the normal route for any wealthy person who wishes to settle in Monaco and enjoy its exceptional lifestyle, without joining the very closed circle of Monegasque nationals.

Monegasque nationality: a rare and exclusive privilege

Becoming a Monegasque (obtaining Monegasque nationality) is an extremely rare and highly regulated privilege. Nationality refers to belonging to the Monegasque political community, with all that this implies in terms of civil rights and historical attachment to the Principality. In Monaco, many of the native citizens come from old families rooted in the Rock, and the authorities ensure that the number of Monegasques remains compatible with the small size of the country and the resources available to the State for its nationals. Unlike residence, which concerns several tens of thousands of people, Monegasque nationality concerns only a handful of individuals : barely a quarter of Monaco's inhabitants have a Monegasque passport.

What does Monegasque citizenship imply?

To be a Monegasque is to become a citizen of the Principality with a Monegasque passport, the right to vote and to stand as a candidate in national (National Council) and municipal (Communal Council) elections, as well as access to all the rights and social benefits offered by Monaco to its children. Among the exclusive advantages of Monegasque nationality are: social assistance and allowances reserved (in particular in the event of unemployment, illness, birth of children, etc.), priority access to state-owned housing (public housing managed by the State) at rents well below free market prices, as well as priority access to certain jobs in the territory. Monegasques also benefit from Monaco's famous "soft" taxation, characterised by the absence of income tax, wealth tax, property tax or housing tax. However, on this specific point, it is important to point out that foreign residents already share this tax advantage: moving to Monaco as a resident is sufficient to avoid paying income tax (with the exception of French nationals subject to Franco-Monegasque tax agreements). Thus, Monegasque citizenship does not bring any additional tax benefits compared to mere residence – the main additional attractions are civic and social (political rights, security of never being able to be deported, etc.). full integration into the Monegasque community, etc.).

In addition, a Monegasque enjoys international travel facilities linked to his status: for example, a Monegasque citizen can reside freely in France without a visa (thanks to special agreements between Monaco and France) and his passport ensures easy access to many countries. However, becoming a Monegasque is far from being accessible to the standard wealthy newcomer: the Principality jealously guards its national identity and grants citizenship only with extreme parsimony. Neither a long stay nor a birth on Monegasque soil is enough to obtain nationality. Monaco does not apply jus soli: a child born in Monaco to foreign parents does not become Monegasque simply because he or she was born in the Principality. The only exception to this rule, provided for by law, is that a child born in the Principality to unknown parents would be granted nationality at birth, in order to avoid any situation of statelessness. In practice, this is extraordinarily rare. Thus, Monegasque nationality remains essentially a matter of filiation (blood relationship) or sovereign decision, as we shall see.

Another notable particularity: Monaco has a very strict approach to dual nationality. In principle, a Monegasque cannot have another citizenship in addition to his own, and conversely an applicant for Monegasque naturalisation must be prepared to renounce his original nationality. If a Monegasque acquires a foreign nationality, he or she is deemed to renounce his or her Monegasque nationality. The only factual exception to this rule concerns the case of foreign spouses who obtain nationality by marriage : Monegasque law requires them to retain their original nationality when acquiring Monegasque nationality. This measure aims to prevent their children from being deprived of nationality in the event of divorce (children born to a parent who became Monegasque by marriage cannot automatically claim Monegasque nationality in the event of dissolution of the marital bond). Apart from this particular case of marriage, Monaco does not recognise dual nationality. This means that becoming a Monegasque usually requires an exclusive commitment and the loss of one's previous citizenship – a sacrifice that few people are willing (or allowed) to make.

Becoming a Monegasque: the routes to nationality

In view of the above, how do you obtain Monegasque nationality? Apart from the birth of Monegasque parents, which is the most common case in the local community, there are only three legal ways to become a Monegasque if you are not Monegasque by birth:

• By descent ("right of blood" ): The most natural way to have Monegasque nationality is to be born to Monegasque parent(s). Monaco's Nationality Code grants full citizenship to a child born to a Monegasque father or mother, subject to certain conditions in the case of a mother. Historically, transmission was only by paternal descent, but the laws have evolved to also allow transmission by Monegasque mothers (particularly when the mother was herself born Monegasque or has Monegasque ancestors). In short, if one of the parents is a Monegasque citizen, the child will generally be able to claim nationality from birth. This explains why every year, the majority of new Monegasques registered are registered by descent (births into Monegasque families). For example, out of a total of 160 new citizens registered in 2024, 98 were registered by descent. However, this method of acquisition is out of reach for expatriate candidates, since it depends exclusively on your family ancestry.

• By marriage : Marrying a Monegasque does not automatically make you a Monegasque, but opens up a right to nationality after 20 years of marriage and uninterrupted cohabitation. The legislation provides that the husband or wife of a Monegasque national may, at the end of this period, acquire Monegasque nationality by declaration. Strict conditions apply: the couple must still be united (no separation, divorce or cessation of cohabitation), and the Monegasque spouse must have retained his or her nationality. It is also required that the latter has not himself obtained his nationality by marriage, in order to avoid successive chains of naturalization. Importantly, the foreign spouse does not have to renounce his or her original nationality, as Monegasque law even requires that he or she retain it – a notable exception to the general principle of non-recognition of dual nationality in Monaco. This rule is intended to protect children in the event of the dissolution of the marriage, by ensuring that they can inherit a nationality. Marriage to a Monegasque therefore remains a very limited route to citizenship. In 2024, only 51 people obtained nationality through this means, proof that this procedure remains extremely regulated.

• By naturalisation (sovereign decision): The third way, and the only one open to foreigners who have neither Monegasque parents nor Monegasque spouses, is naturalisation by grace of the Sovereign Prince. As Monaco is a constitutional monarchy, the granting of nationality is the discretionary power of the Prince. The law allows a foreigner to apply for naturalisation with H.S.H. the Prince of Monaco after at least 10 years of habitual residence in the Principality once they have reached the age of 18. This 10-year criterion (known as the probationary condition) may be waived by the Prince in person in certain exceptional cases – for example, for individuals who have rendered eminent services to Monaco or for reasons of national interest – but this remains extremely rare. The naturalisation procedure is long and meticulous, and even if all the administrative conditions are met, the Prince is under no obligation to grant nationality. In practice, each case is studied with the greatest rigour : not only must you prove your integration and attachment to Monaco, but you must also show your credentials in terms of morality, security, etc. Two non-negotiable requirements must be met before any naturalisation can be made: the applicant must be exempted from military obligations towards his country of origin, and he must lose his previous nationality at the time he becomes a Monegasque (unless the Prince grants a special dispensation, which in practice only happens in the case of spouses, as seen above). Monegasque naturalisation is therefore an honour granted in dribs and drabs. To illustrate its rarity, in 2024, out of all new Monegasques in all categories (births, marriages, etc.), only 11 people have obtained nationality through a Sovereign Direct Naturalisation Ordinance . This derisory figure reflects Monaco's very restrictive policy on the acquisition of citizenship. Many wealthy foreign residents live in the Principality for several decades without ever being able (or wanting) to become Monegasques. Monaco considers that residence is sufficient to allow expatriates to enjoy the country, while nationality is perceived as a sacred bond, almost inseparable from birth or local filiation.

In addition to these three main avenues, it should be pointed out for the sake of completeness that there are other specific provisions, although marginal : for example, the possibility of "reinstatement" in Monegasque nationality for a person who has lost it (by decision of the Prince), or the attribution of nationality to a minor child upon the naturalization of his or her foreign parents (collective effect of naturalization). It has also happened, very exceptionally, that nationality has been conferred in tribute to deserving personalities (for example, a high-level sportsman) but this remains at the total discretion of the Prince and outside of any formalized procedure. For the vast majority of individuals, "becoming Monegasque" is a highly unlikely scenario, and it is important to be aware of this when choosing Monaco as your new place of residence.

Residence or nationality, two statuses not to be confused

It is essential to make a clear distinction between Monegasque residence and Monegasque nationality. Residency is a status accessible to any wealthy expatriate who meets the criteria for establishment: it is the key to living in Monaco legally and enjoying its privileged environment (security, climate, absence of income tax, etc.). dynamic social life). Becoming a Monegasque resident will not turn you into a Monegasque citizen, but this status is generally sufficient to achieve your wealth and personal goals in the Principality. Conversely, Monegasque nationality is an extremely rare honour, reserved for a very limited number of people, and accompanied by civic rights and specific social benefits. Obtaining a Monegasque passport is an arduous process, often impossible to plan, which goes beyond the simple framework of an administrative procedure – it is a life commitment alongside Monaco.

For most international families considering a settlement on the Rock, the practical question that arises is therefore that of residency and not citizenship. It is quite possible to settle in Monaco permanently, to buy a property, to send one's children to school and to develop one's business there without ever becoming Monegasque, and that does not detract from the country's attractions in so far as residents already benefit from the essentials. quality of life and taxation). Nationality will remain the prerogative of native Monegasques and a few elected officials handpicked by the Prince.

Do you want to obtain Monegasque residency? Don't let administrative complexities slow down your life project. Our Petrini Exclusive Real Estate Monaco agency is at your disposal to accompany you step by step in your application for residence in Monaco, from the constitution of the file to the obtaining of your residence permit. With our premium expertise and in-depth knowledge of local procedures, we offer a tailor-made, confidential and efficient service, adapted to a demanding international clientele. Do not hesitate to contact us to make your Monegasque dream come true.