General Taxes in Monaco

Information about the various taxes you can expect to pay in Monaco...

Monaco is not a completely tax-free territory, as is often thought; although it operates a system based on the general principle of no direct taxation.

France holds a double taxation agreement with Monaco, and as such it is only French nationals living and working in the Principality who pay income tax (unless they can prove that they were resident in Monaco for five years prior to 31 October 1962). Note: All other foreign nationals living in Monaco with an income from outside of the Principality are liable to pay tax in that country.

The tax year in Monaco runs from January to December.

Income tax and capital gains tax

There is no direct income tax or capital gains tax on individuals resident in Monaco.

Business tax

There is no direct tax on companies, although firms that earn more than 25 percent of their turnover outside of the Principality pay a tax of 33.33 percent on profits.

Withholding tax

There is no withholding tax in the Principality for Monaco residents.

Inheritance tax and gift tax

Estate duty is payable on Monaco sited assets at rates of up to 16 percent, depending on the beneficiary’s relationship with the deceased, as follows:

  • Direct heirs/parents/spouses – 0 percent
  • Siblings – 8 percent
  • Aunts/uncles to nieces/nephews – 10 percent
  • Other relationship – 13 percent
  • Unrelated – 16 percent

There is no Monegasque estate duty on assets situated outside the Principality.

Gifts left to charitable institutions or to the state are exempt from tax.

VAT

The Principality’s main source of revenue is VAT which is paid on goods and services in the usual way. The normal rate of VAT is 20 percent although there are reduced rates of 10 percent and 5.5 percent for essential goods and services.

VAT is also payable on the purchase of properties that are less than five years old.