Monaco's tax system is unique and simple, operating with no income tax and a low business tax, making it a tax haven for individuals and foreign companies setting up in the Principality.
However, there are two exceptions to this almost total absence of taxation.
Corporate income tax is the only direct tax on companies in the Principality. It applies to companies that make less than 75% of their turnover in the Principality and therefore more than 25% outside Monaco.
It also applies to companies deriving their income from patents and artistic property rights and to companies carrying out commercial or industrial activities. The latter are subject to a tax rate of 33.33% on all company profits.
All persons of French nationality who were not born in the Principality are subject to French income tax. This is due to the Principality's only bilateral tax treaty, the customs union between France and Monaco, established in the 1963 Franco-Monegasque Customs Convention.
Private individuals are exempt from all income, capital gains and capital taxes. These are :
In Monaco, where a relative is in the direct line, the tax on the inheritance or donation of property is 0%. Indeed, inheritance and gift taxes apply exclusively to property located in the Principality and differ according to the specific degree of relationship between the testator and the heir or the donor and the donee.
Registration fees are levied on registration formalities concerning transfers or civil or judicial acts. The acts subject to compulsory registration and within an imperative time limit are, for example
Stamp duty is a tax that applies to all papers intended for civil and judicial acts and writings that can be produced in court as evidence. It serves as a means of collection for administrative formalities such as
Stamp duties are generally fixed, but the price may vary according to the size of the paper or the values expressed in the documents.
In conclusion, moving to Monaco could certainly have a particularly positive impact on your tax situation, not only in a private context, but also in a professional context. You will increase your income and your potential to buy a property in one of the Principality's districts.
For information on the purchase, sale, rental, management and the estimation of your property in Monaco, our team is available for further information.
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