Given its geographical location and the influx of cross-border workers, remote work in the Principality is governed by specific rules. Monaco has formalized its rules, but the rules are different to France and Italy. With 6,773 employees working remotely in 2024 (up from 600 in 2017). Sophie Marquet, partner at CMS Monaco, explained the legal architecture of working in Monaco. Here’s what employers and employees need to navigate it correctly.
The direct answer
Remote work in Monaco requires a contract addendum, this caps at two-thirds weekly hours, and requires a fixed workplace location. Social security agreements with France (since 1952) and Italy (formalized in 2024) let cross-border workers stay in Monaco’s system – if employers assess tax risks upfront. Limitations exist. Competitive advantage exists too.
This is absolutely mandatory in Monaco
Sophie Marquet, Partner at CMS Monaco
Why this matters for companies
Law No. 1.429 (July 2016) created the legal scaffolding. However, companies didn’t use it until the 2020 pandemic changed working conditions. Now, a few years later, they’re either formalizing arrangements or facing compliance gaps, particularly on social security contributions allocation between states.
The catch isn’t remote work itself. It’s the mandatory contract addendum. Sophie Marquet, Partner at CMS Monaco, emphasized this clearly: “This is absolutely mandatory in Monaco.” The requirement exists to document precisely where employees work for a Monegasque company and ensure proper contribution split between jurisdictions.
What the rules actually are
Employees can work remotely no more than two-thirds of weekly hours. Three days per week is rare. One to two days is the norm. That’s the hard cap.
The workplace location must be fixed and documented. Employees can’t work Monday from Nice and Tuesday from San Remo. This matters for tax residency and permanent establishment calculations – if you work one day in France and one in Monaco, and you’re creating nexus risk for the employer.
The bilateral social security agreements (Amendment No. 6 to the 1952 Franco-Monegasque agreement and the 2021 amendment to the 1982 Italo-Monegasque agreement) allow cross-border employees to stay affiliated with Monaco’s funds. Provided the framework is followed correctly.
A Monegasque employer must assess the conditions under which a permanent establishment could be created abroad.” In most cases, work is genuinely conducted in Monaco despite physical distance. But the potential tax linkage to France or Italy must be analyzed upfront, not discovered in an audit.
Sophie Marquet, Partner at CMS Monaco
The cross-border wrinkle
Monaco’s small resident workforce means remote work isn’t optional – it’s essential infrastructure. Italy just formalized this in 2024 (agreement signed in 2021). France had provisions already.
But there’s a wrinkle. Employers must assess whether remote work creates a permanent establishment abroad. Marquet warned: “A Monegasque employer must assess the conditions under which a permanent establishment could be created abroad.” In most cases, work is genuinely conducted in Monaco despite physical distance. But the potential tax linkage to France or Italy must be analyzed upfront, not discovered in an audit.
What you should do
For companies: Start with operational assessment. Which functions genuinely suit remote work? Draft the framework with flexibility to avoid overly restrictive conditions. Submit to employee representatives and get Labour Department approval. Don’t skip the addendum, it’s not paperwork, it’s your compliance shield.
For employees: Read the contract addendum carefully. It should define working conditions, hours, location, and reversal terms explicitly. Proper drafting protects both parties on data safety and privacy.
For cross-border workers: Confirm your workplace location is fixed and documented. Verify your employer has reviewed tax risk for your specific role. If they haven’t, ask them to.
The broader picture
Unlike U.S. tech giants pulling workers back to offices, Monaco is consolidating remote work. The framework is permanent, not temporary. This helps companies going forward.
The limitation is real: two-thirds cap, fixed location, mandatory documentation. The opportunity is also real: rules that actually work. Perhaps, have a conversation with your legal team to assess the fit?
