Monaco Business
Government Funding
The following grants/assistance are available, subject to various conditions being met, from the government to business entities in Monaco :
-Recruitment
-Tax breaks for start ups
-Buying electric vehicles
-Exemption from a part of employers’ social charges
-Guarantee Fund
-Industrial allowance
-Innovation subsidies
-Interest rebates
-Export aid
-The EUREKA network
-The SACDE
-Training subsidies
Companies can benefit from a whole range of solutions and advice when seeking manpower in particular :
- Taking manpower on school trainees -No compulsory remuneration. Bonus or premium at the discretion of the company.
- Sandwich courses- Remuneration based on the scale in force. Financial aid for young Monegasques and “local children” whereby 50% of education costs are reimbursed. Employer’s contributions are reimbursed for two years if the apprentice is hired on a permanent basis.
- Newly created jobs - Salary is fixed by the company using the SMIC as the basic salary. Financial aid consists of the Employer’s contributions (CCSS and CAR) reimbursed for one year or two years .
- Back-to-Work Assistance Plan- which includes financial aid paid by the ASSEDIC.
Any company set up in the Principality and making at least 25% of its turnover outside the Principality is exempt from tax on profits for a period of two years.
In order to promote the development of electric vehicles, commercial and industrial companies can be reimbursed 30% of the purchase price of the vehicle, exclusive of tax, including batteries.
Exemption from a part of employers’ social charges
To be exempt from a part of the employers’ social charges, the employer must have :
(i) created a position ;
(ii) recruited a candidate proposed by the Employment Service, registered for at least one month ;
(iii) offered a permanent contract or a fixed-term contract of at least two years.
The subsidy granted is paid directly to the employer, as a refund of the employers’ contributions (C.C.S.S. and C.A.R. contributions) paid to the Monegasque Social Security Office, i.e. 23% of the gross salary.
This aid is guaranteed for a one-year period, and may be renewed for a further year should the employer allow his employee to benefit from internal training.
The government has, in conjunction with the banks, created a guarantee fund to support the development of economic activities in the Principality.
The purpose of this fund is to guarantee assistance from the fund’s banks in the context of company creation, transfer or development projects.
This allowance is for companies of an industrial nature, the aim of which is to ease the weight of companies’ rental expenses. This premium, paid out twice a year, takes into account the size of the rent, the number of square metres occupied as well as the company’s economic and social influence.
They can be applied to all stages of defining, developing, perfecting or launching technological innovations, industrially or commercially, concerning a product or new or improved process, as well as to other activities undertaken by innovative companies (recruiting managers for innovation ; searching for technological partners etc...).
Companies liable for tax on profits that declare expenditure for research may claim tax credit equivalent to the following amounts :
-one share equal to 5% of all expenditure for research declared over the course of the year, known as the volume share;
-one share equal to 45% of the difference between expenditure for research declared over the course of the year and the average expenditure of the same type, adjusted to retail price increases excluding tobacco, for the previous two year period, known as the increase share.
Companies are entitled to receive interest rebates for professional loans taken out with a banking establishment for investment to develop their activities.
This rebate consists of lowering the interest applied by the bank to the EURIBOR rates increased by 0,75% per year, for the entire duration of the loan.
Monegasque companies can benefit from aid to exports as follows :
- Trade Fair Insurance, which applies to commercial events organised abroad and allows companies to size up the competition, meet distributors and put in place business contracts; it covers 65% (75% for Japan) of the expenses incurred by the company for the event, within the limits of a maximum budget defined by contract ;
- Prospecting Insurance, which concerns the more important steps towards exportation (creation of a specialised service, carrying out a prospecting trip or market research).
The aim of these subsidies is to cover part of the prospecting costs incurred by the company when prospecting foreign markets, which it has not been able to recover through sales.
As a member of the European intergovernmental initiative EUREKA, the Principality of Monaco allows companies involved in a co-operative project with another European company to benefit from this internationally recognised label.
Monegasque companies with a technologically innovative project, which will result in a marketable product, process or service, in partnership with another European company or laboratory, can benefit from specific funding, provided by the government within the framework of the EUREKA partnership.
The government is a 100% shareholder in a capital risk company called the "Société d'Aide à la Création et au Développement d'Entreprise", whose role is to support innovative Monegasque companies and help new companies to establish themselves in the Principality.
Innovative projects (at the development phase) can be proposed to the government who will study the opportunity of providing financial support through participation in the capital of a structure to be created in the Principality, loans, etc.
The SACDE also assists those with innovative projects to set themselves up in the Principality by following through the company creation procedure, and searching for premises, etc.
The government contributes to training programmes in conjunction with certain professional groups ( Monegasque Employers’ Federation, Processing Industry Group, Monegasque Hotel Industry Association etc...) by covering part of the cost of the training.
These training programmes can be of a general nature (languages, computing, etc.) or more specific (security, quality certification, food hygiene).
Please contact us for further information
