Monaco is one of the only countries in the world that does not collect an income tax. This unique system has been proving itself to be effective since 1869.
Historically speaking, the lack of an income tax on individuals in the Principality dates back to the nineteenth century.
In 1848, at a time of revolution in Europe, the communes of Roquebrune-Cap-Martin and Menton, which were until then part of the Principality of Monaco, seceded. Having had enough of the tax burden in the Principality, the two regions became part of France. Monaco rediscovered its independence, but lost 80% of its territory and was forced to develop a new economic model.