The number of UK high-net-worth individuals seriously exploring relocation abroad has grown substantially. The drivers are multiple — a combination of structural tax changes, an increasingly complex fiscal environment for high earners and investors, and a reassessment of where to build a long-term home. Among the destinations receiving serious attention, Monaco stands apart: not simply as a tax haven in the conventional sense, but as a fully functioning, high-quality sovereign state that happens to offer one of the most favourable tax regimes in the world.

This guide is written specifically for UK-based individuals considering Monaco. It covers the UK tax landscape driving the trend, what you need to do to correctly exit UK tax residency, the inheritance tax implications that are frequently misunderstood, pension considerations, and a practical overview of what the relocation process involves.

Why UK HNWIs Are Looking Abroad

For decades, the UK's non-domicile regime allowed long-term UK residents with a foreign domicile of origin to shelter non-UK income and gains from UK tax. This regime was a significant reason why the UK — particularly London — attracted internationally mobile wealth. The abolition of the non-dom regime, with effect from April 2025, has removed that incentive for many individuals and prompted a fundamental recalculation of where to base themselves.

Beyond the non-dom changes, the UK's overall fiscal trajectory — higher rates of capital gains tax, changes to business asset disposal relief, frozen income tax thresholds, and the treatment of carried interest — has reduced the UK's relative attractiveness for high earners and investors. The decision to leave is rarely triggered by a single change; it is typically the accumulation of several that tips the balance.

For those reaching that tipping point, Monaco is consistently among the first destinations examined. The principality offers zero personal income tax, zero capital gains tax, and zero wealth tax — combined with a European location, excellent infrastructure, and a genuine community of internationally mobile, high-achieving residents.

Monaco's Appeal to UK Residents Specifically

No Personal Income or Capital Gains Tax

Monaco's core fiscal advantage is straightforward: for non-French nationals, there is no personal income tax, no capital gains tax, and no wealth tax. For a UK resident with significant investment income, carried interest, or a business sale in prospect, the contrast with the UK's tax rates — up to 45% on income and 24% on capital gains — is stark. The saving on a single significant liquidity event can comfortably exceed the cost of the relocation itself.

Proximity and Connectivity

Monaco is closer to London than many assume. Nice Côte d'Azur Airport offers multiple daily flights to London Heathrow, Gatwick, and City Airport — a journey of under two hours. For individuals who maintain professional or social ties in the UK, this connectivity makes Monaco a genuinely practical base rather than a remote exile. The time zone difference is only one hour, and the business calendar remains substantially aligned with the UK.

English-Speaking Community

English is the de facto working language of Monaco's international business community. While French is the official language and some knowledge is helpful for daily life, relocating UK residents encounter no meaningful language barrier in their professional or social lives. There are British social clubs, international schools offering British and IB curricula, and a substantial community of UK expatriates.

Security and Quality of Life

Monaco has one of the lowest crime rates in the world and a level of personal security — both physical and in terms of privacy — that is genuinely exceptional. For individuals with significant wealth, the ability to live without the level of personal security planning required in other high-profile locations is a quality-of-life consideration that should not be underestimated.

Breaking UK Tax Residency: The Statutory Residence Test

Relocating to Monaco does not automatically make you a non-UK tax resident. You must actively satisfy the UK's Statutory Residence Test (SRT) to cease being liable to UK income tax and capital gains tax on your worldwide income and gains.

The SRT contains both automatic residence tests and automatic non-residence tests. For most HNWIs leaving the UK, the relevant test is the number of days spent in the UK combined with the number of "UK ties" you retain. The key rules for someone who has been UK resident in recent years are broadly:

• Fewer than 16 days in the UK: Automatically non-resident regardless of ties.
• 16–45 days in the UK: Non-resident only if you have no UK ties.
• 46–90 days in the UK: Non-resident only if you have no more than one UK tie.
• 91–120 days in the UK: Non-resident only if you have no UK ties (essentially impossible for most HNWIs with UK families and properties).

UK ties include: having a UK-resident spouse or partner, having a UK property available to you, spending more than 90 days in the UK in either of the previous two tax years, working in the UK for 40+ days, and — for those with fewer than three other ties — having spent more days in the UK than in any other single country.

The practical implication is clear: if you are serious about breaking UK tax residency, you need to limit UK days aggressively, ideally well below 90 per year, and take deliberate steps to reduce your UK ties. Keep contemporaneous travel records — boarding passes, diary entries, hotel bills — from the day you depart. HMRC's compliance activity on high-profile non-residency claims is active and well-resourced.

The IHT Domicile Trap: A Frequently Misunderstood Risk

Perhaps the most significant misconception among UK residents moving abroad is the assumption that leaving the UK also resolves their inheritance tax position. It does not — at least not quickly.

UK inheritance tax is based on domicile, not residence. Domicile is a distinct legal concept that broadly reflects the jurisdiction you regard as your permanent home. Most people who grew up in the UK, built their lives and wealth there, and whose families are based there will be UK domiciled — and will remain so for years after they leave.

The key rules are:

• Domicile of origin: Generally acquired at birth from your father (or mother in some cases). A UK domicile of origin is extraordinarily difficult to lose.
• Deemed domicile: From April 2025, the concept of deemed domicile has been reformed. However, former long-term UK residents may still fall within IHT scope for several years after departure depending on their specific circumstances.
• Domicile of choice: To acquire a Monaco domicile of choice, you must demonstrate genuine intention to make Monaco your permanent and indefinite home — not just a place to reside for tax purposes. Courts and HMRC look at the totality of evidence, including where your family is, where you are buried, what you say in private documents, and whether you maintain strong connections to the UK.

The practical message is: do not assume that a Monaco Carte de Séjour resolves your IHT exposure. Plan early, document everything, take specialist advice, and be prepared for the process to take several years before your domicile position is beyond challenge.

Pension Considerations for UK Residents Moving to Monaco

UK pension assets — whether in a SIPP, workplace defined contribution scheme, or defined benefit arrangement — remain in the UK under UK pension legislation and cannot simply be transferred abroad. The key considerations for Monaco residents are:

Taxation of UK Pension Income

For Monaco residents drawing UK pension income, the taxing rights depend on the type of pension and the applicable double tax provisions. There is no bilateral UK-Monaco tax treaty, which creates complexity. UK government pensions (civil service, armed forces, teachers, NHS) are generally taxable only in the UK regardless of where the recipient resides. Private pension income drawn by a non-UK resident may be subject to UK withholding tax at source unless a specific treaty or HMRC direction applies.

QROPS (Qualifying Recognised Overseas Pension Schemes)

Some Monaco residents consider transferring UK pension assets to a Qualifying Recognised Overseas Pension Scheme. QROPS transfers can be advantageous in certain circumstances — particularly for individuals with large defined contribution funds who wish to manage succession and currency risk outside the UK framework. However, the rules are complex, HMRC imposes an overseas transfer charge in certain cases, and the scheme must be genuinely qualifying. This is an area requiring specialist UK pension advice before any action is taken.

Annual Allowance and Contributions

UK nationals living in Monaco who have ceased UK employment may no longer have UK-relevant earnings against which to make tax-relieved pension contributions. This limits the utility of continuing to contribute to a UK pension once fully non-resident.

What to Do With UK Property

Retaining a UK property that is available for your use is one of the most significant UK ties under the SRT. If you own a home in the UK and keep it available to you — even occasionally — it counts as a tie and constrains the number of days you can spend in the UK before resuming UK tax residency.

Options for Monaco-bound relocators with UK property include:

• Sell before departing: If a sale is planned, completing it before you leave — while still UK resident — means the gain is within the UK CGT regime but removes a tie from day one of non-residency.
• Let on a commercial basis: A UK property that is genuinely let to a third party on commercial terms at arm's length is generally not treated as "available" to you under the SRT. Rental income will still be taxable in the UK under non-resident landlord rules.
• Transfer to family: Transferring to a UK-resident spouse or children has its own UK tax implications and may or may not remove the tie, depending on the circumstances.

UK property owned by non-residents is also within scope of UK CGT on disposal under the Non-Resident Capital Gains Tax rules. The gain is not sheltered by Monaco residency.

Practical Relocation Checklist

A well-structured move from the UK to Monaco typically involves the following steps, broadly in order:

• Engage a UK tax advisor specialising in non-residency, domicile, and IHT to model your specific position and plan the departure
• Begin the Monaco property search — purchase or rental — allowing for a 2–4 month timeline
• Open a Monaco bank account through an introduction from Amberlake Partners or another trusted advisor
• Time the departure relative to the UK tax year (5 April): leaving early in the new tax year maximises the clean break
• Compile and authenticate documentation: passport, birth certificate, criminal record certificate (from ACRO Criminal Records Office for UK residents), health insurance
• Submit Monaco residency application to the Direction de la Sûreté Publique
• Notify HMRC of departure (P85 form); review ongoing UK filing obligations
• Review UK pension position with specialist pension advisor
• Establish Monaco-based investment management arrangement (Amberlake Partners)
• Enrol children in Monaco schools if applicable
• Update wills and estate planning to reflect new residency and anticipated domicile change

Life in Monaco: Practical Considerations for UK Arrivals

Education

Monaco offers excellent schooling for children of all ages. The International School of Monaco (ISM) follows the IB curriculum and is the natural choice for British families. French public schools are also high quality and provide rapid language immersion. The principality's small size means schools are accessible on foot or by Monaco's efficient public bus network.

Healthcare

Monaco's healthcare system is excellent and internationally oriented. The Princess Grace Hospital Centre (CHPG) offers high-quality acute care, and the principality has strong private medical provision. UK nationals will need to arrange private health insurance on departure, as NHS entitlement ceases with non-residency.

Banking

UK bank accounts can generally be maintained after departing for Monaco, though some banks review accounts held by non-residents. Having a Monaco bank relationship established before you leave provides continuity and satisfies the financial means requirement for the residency application. Amberlake Partners facilitates introductions to Monaco private banks as part of the relocation process.

How Amberlake Partners Supports UK Relocators

Amberlake Partners does not provide UK legal or tax advice — that requires UK-qualified specialists. Our role is on the financial and Monaco-side of the transition:

• Banking introductions: We have established relationships with Monaco's private banks and facilitate the account-opening process for relocating UK clients.
• Portfolio management: We manage client investment portfolios in Monaco under our CCAF (Monaco regulator) and SEC authorisations, providing FATCA-compliant structures for US persons and appropriate reporting for UK non-residents.
• Wealth management continuity: We provide a structured, personalised investment management service that replaces the UK advisory relationship, with ongoing reporting in formats compatible with UK non-resident tax return requirements.
• Professional network: We can introduce clients to Monaco lawyers, UK tax advisors with international expertise, pension specialists, and real estate professionals as needed.

For more on why many Monaco residents choose to work with an independent asset manager rather than — or in addition to — a private bank, see our article on the advantages of the external asset manager model. For a full overview of the Monaco residency application process, see our complete Monaco residency guide. And for UK residents also considering a property purchase, our Monaco real estate investment guide covers prices, districts, and the buying process in detail.

Frequently Asked Questions

Conclusion

Monaco has always attracted internationally mobile wealth, but the combination of structural UK tax changes and Monaco's unmatched combination of lifestyle and fiscal efficiency has made the relocation decision more straightforward for an increasing number of UK HNWIs. The process is plannable, the community is welcoming, and the quality of life is exceptional.

The critical caveat is that departure from the UK must be handled carefully — particularly on the SRT, domicile, IHT, and pension fronts — to realise the benefits fully and avoid leaving unintended UK tax exposure in place. With the right advisors and a structured approach, these risks are manageable.

Amberlake Partners is here to support the Monaco side of your transition. We welcome a confidential initial conversation at any stage of your planning.

Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. UK tax law is complex and subject to change. Please consult qualified UK tax and legal advisors for personalised guidance.