The Taxation System

Monaco’s fiscal system is characterized by its transparency and simplicity, designed to encourage long-term residency and investment. While the Principality is often noted for its lack of personal income tax, EBC provides the administrative clarity needed to understand the nuances of the local tax landscape.

– Personal Income Tax: Under Monegasque law, individuals residing in Monaco (excluding French nationals under the 1963 Convention) are not subject to personal income tax on income earned within or outside the Principality.

– Wealth & Property Tax: There is no wealth tax, annual property tax, or council tax in Monaco.

– Inheritance & Gift Tax: Taxation applies only to assets situated within the Principality. Rates are 0% for direct line transfers (parents to children or between spouses) and vary for other degrees of kinship.

– Corporate Tax: Monaco operates a territorial tax system. Companies generating more than 75% of their turnover within the Principality are exempt from corporate tax. (For those exceeding 25% outside Monaco, a 25% rate applies).

– VAT: Monaco and France form a customs union; therefore, Value Added Tax (TVA)is applied at the same rates as in France (standard rate 20%).

– Stamp & Registration Duties: Fixed or proportional duties apply to legal acts and transfers. This includes a 1% duty on tenancies (payable upon registration of the lease) and duties on property titles or the transfer of business assets.