Remote Work Between Monaco and Italy: a Landmark Agreement to Modernise Cross-Border Work

Since 1 June 2024, an unprecedented bilateral agreement between Monaco and Italy officially allows employees who live in Italy and work for a Monaco-based company to work remotely.
This is a major change for cross-border employees, for companies and, more broadly, for the organisation of work in the Principality.

As professional borders are being redrawn, this agreement marks a turning point in the modernisation of Monaco's labour market.

Why is this new agreement important?

Until now, remote work was strictly regulated and not permitted for employees living in Italy, whatever their role.
The agreement signed in 2024 therefore:

• Simplifies the employment relationship
• Offers new ways of organising work
• Meets the expectations of employers and employees
• Makes cross-border economic activity run more smoothly

With nearly 4,500 Italian workers employed in Monaco, the impact is considerable.

What the agreement actually says

The agreement sets out a clear framework for both the company and the employee:

Who can work remotely?

• Any employee living in Italy
• Employed by a company based in Monaco
• Where the nature of the job allows remote work
• Subject to the employer's explicit agreement

What are the limits?

• Remote work can be regular or occasional, depending on the contract
• An amendment to the employment contract is generally required
• The employer must ensure:
  • the reporting line is maintained
  • working hours are controlled
  • data security

Tax and social security matters

The social security and tax system remains the same:

• The employee remains subject to Monaco law
• Contributions and declarations do not change
• The agreement was designed to avoid double taxation and complex administrative situations

It is therefore simple and smooth to implement for both the company and the employee.

What are the benefits for employees?

Remote work offers many advantages, especially for those living in the Italian areas close to Monaco.

Time savings

Fewer journeys on the motorway, through the Monaco tunnel or across border crossings:
more comfort, less fatigue and less traffic congestion.

Financial savings

• Lower fuel costs
• Fewer tolls
• Reduced parking costs

Quality of life

Being able to work from home a few days a week significantly improves:

• work-life balance
• availability for family
• flexibility in organising one's time

What are the benefits for Monaco companies?

Companies also have a lot to gain:

• Greater attractiveness
  Many Italian and cross-border professionals now favour companies offering hybrid working conditions.
• Improved productivity
  International experience shows that well-managed remote work increases focus on certain tasks.
• Business continuity
  In the event of bad weather, traffic saturation or mobility issues, teams can keep working.
• Team motivation and retention
  Employees see it as recognition of their autonomy.

A change that paves the way for further cooperation?

This agreement may be just a first step.
Some economic players hope that Monaco will eventually also consider:

• more remote work for French employees
• more flexible frameworks for hybrid assignments
• shared digital tools with neighbouring countries

For now, the Italy/Monaco agreement is welcomed as an important step towards a more modern and attractive labour market.