Corporate tax is charged on profits at 33.33% for Monégasque businesses engaged in industrial or commercial activity and derive more than 25 % of their turnover outside Monaco.
VAT is imposed on the same bases and rates (5.5% reduced rate and 20% standard rate) as in France.
There is no personal income tax. However, French nationals who transferred their domicile to Monaco after 13 October, 1957 are subject to French Income Tax.
Inheritance and transfer taxes are levied on assets located within Monaco. This applies irrespective of the domicile, residence or nationality of the deceased or the donor. The rate of tax, is charged on the market value of the assets. It varies between 0 % (in direct line of descent) and 16 %( between non-relatives), depending on the closeness of the relationship between the deceased and the heir as follows:
- Nil % between parents and children or between spouses.
- 8% between brothers and sisters.
- 10% between uncles, aunts, nephews and nieces.
- 13% between other relatives.
- 16% between non-relatives.
Stamp duty is a tax that is levied on all documents used for civil and legal purposes, It also applies for documents that are required as legal proof in court. The main items include:
- 1 % for tenancy agreements, levied on the annual rent plus charges.
- 3 % for mortgage agreement documents, for the engrossed copy.
- 5 % on the sale of movable property. This duty is reduced to 2 % for some sales at public auctions.
- 6.5 % on the sale of real estate reduced to 4.5% if held in an individual’s name.
- 7.5 % on transferring business or customer list.