Business & Other Taxes – Monaco

Reduced from 33.33% in 2022. Applies ONLY if: company performs industrial/commercial activity AND generates >25% revenue outside Monaco. Pure Monaco operations: 0% corporate tax.

New companies enjoy phased relief: Year 1-2: 0% tax, Year 3: 6.25%, Year 4: 12.5%, Year 5: 18.75%, Year 6 onwards: 25% standard. Significant startup advantage.

Companies receiving income from industrial, literary, artistic property subject to 25% tax. Special treatment for intellectual property revenues.

Companies with >75% international sales may qualify for exemption. Must meet specific criteria. Encourages international business operations from Monaco.

Monaco part of French VAT system under customs union. Standard rate 20% same as France. Businesses collect and remit VAT like French companies.

Reduced rates follow French schedule: 10% certain goods/services, 5.5% essential items, 2.1% medicines/newspapers. Exemptions: financial services, insurance, healthcare.

Tax on rental agreements: 1% of total rent plus estimated service charges for entire rental period. Paid upon registering tenancy. Late registration penalties apply.

Complete exemption for: spouses, children, parents. Transfers between direct heirs completely tax-free. Applies to both inheritance and lifetime gifts.

Civil union partners: 4%, Siblings: 8%. Moderate taxation for close family. Lower than most countries.

Nephews/nieces: 10%, Great-nephews/nieces: 13%, Unrelated persons: 16%. Progressive rates based on relationship distance.

Tax applies ONLY to assets located in Monaco: real estate in Monaco, Monaco bank accounts, shares in Monaco companies, physical assets in Monaco. Foreign assets NOT taxed - major planning opportunity.

Gifts/inheritances to charitable institutions or the Principality itself are completely tax-exempt. Encourages philanthropy.

Monaco signed updated EU protocol strengthening automatic financial information exchange. Extends reporting to: digital currencies (crypto), e-money products, enhanced due diligence.

2018: Monaco achieved highest 'Compliant' rating from OECD Global Forum on Transparency. Same level as Germany, New Zealand. No longer tax haven per OECD/EU.

Monaco banks/financial institutions share client data with tax authorities under Common Reporting Standard and FATCA. Full transparency with international standards.