Social media posts claim that Monaco has much better-maintained streets compared to neighbouring France despite charging no taxes. A video has gone viral on social media showing a road crossing the border between France and Monaco, with the former's Rue des Martyrs de la Résistance on one side which looks a bit rough around the edges compared to Monaco’s Rue Bellevue on the other. The video has been shared thousands of times on TikTok and X, with captions in multiple languages claiming that Monaco has zero taxes.
The post implies that Monaco maintains its pristine streets without taxation, that taxes aren't needed for good public services and therefore that a libertarian tax regime is the way to go. The claims aren't quite accurate though. It's true that the principality doesn't levy a personal income tax on its residents, nor does it impose capital gains or net wealth taxes, for example.
However, other taxes do exist, such as a 33.3% tax on profits earned on the sale of real estate. Companies with profits of more than 25% that come from outside of Monaco are also taxed at a rate of up to 33.
3%. The former is particularly significant because Monaco has some of the highest property prices in the world: according to the most recent figures from the principality's statistics agency, the average cost per square metre in Monaco hit €51,418 in 2023, representing an almost 40% rise in a single decade. It also charges a 20% VAT rate, which is bolstered by its status as a top to.
