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MONACO
We have a team of professionals ready to support your every need so you can focus on expanding your business in Monaco, an elegant microstate offering exceptional lifestyle perks and a compelling fiscal environment.
WHY MONACO?
• Zero Personal Income Tax (for most residents)
Monaco famously imposes no personal income tax, a policy in place since 1869—except for French nationals, who remain taxable under a bilateral treaty.
•Prestigious, High-Net-Worth Environment
Over 30% of residents are millionaires. Its reputation attracts affluent individuals seeking privacy, luxury, and financial advantages.
• Premium Lifestyle & Safety
Monaco combines sublime Mediterranean beauty, world-class events (like the Monaco Grand Prix), elite social life, and ultra-high public safety
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• Strategic European Positioning
Though not in the EU, Monaco benefits from a customs union with France and seamless access to the EU market.
ADVANTAGES
Favorable Tax Structure
Individuals (except French nationals) pay no personal, wealth, or capital gains tax.
Potential Corporate Tax Exemptions
Companies generating at least 75% of turnover within Monaco are exempt from corporate income tax.
New Company Tax Incentives
New businesses may benefit from tax exemptions:
- Years 1–2: 0% CIT
- Year 3: ~6.25%
- Year 4: ~12.5%
- Year 5: ~18.75%
Luxury Infrastructure & Networking
Monaco excels in high-value sectors like luxury goods, finance, tourism, events, and digital services, offering unparalleled networking opportunities.
SIMPLE TAX REGIME
Personal Income Tax
- 0% for residents (except French nationals)
- No wealth, property, or standard municipal taxes
Corporate Income Tax
- Applies only if >25% of turnover comes from outside Monaco
- Tax rate: 33.33% (approximate)
Value-Added Tax (VAT)
- Equivalent to France’s VAT: 20% standard, with reduced rates (e.g., 5.5%) on certain goods/services
Stamp Duties & Registration Taxes
- Various duties apply:
- Rental agreements: 1%
- Property sales: 3–4.5% (6.5% if held under a company)
- Business sales: 7.5%
- Art/movable assets: 2–5%
- Various duties apply:
Inheritance Tax
- Spouses/children: 0%
- Siblings: 8%
- Extended family: 10–13%
- Non-relatives: 16%
Other Taxes
INCOME TAX RATES (Personal)
- No personal income tax for residents (except French nationals)
CORPORATE TAX RATES
- 0% to 33.33%, depending on turnover location
- New company phased exemptions available
MONACO COMPANIES
- Legal Forms:
- SARL (min. €15,000 capital)
- SAM (min. €150,000 capital)
- SNC and SCS structures available
- Ease of Setup:
- Monaco Welcome Office assists new businesses
- Licensing required for regulated sectors to balance economic diversity
- Economic Ecosystem:
- Dominant sectors: luxury, finance, services, tourism
- State retains monopolies in tobacco, postal, and gambling through entities like Société des Bains de Mer (SBM)
- Support Structures:
- Monaco Economic Board (MEB) promotes investment and supports foreign companies via trade missions and business facilitation
STRATEGIC INSIGHTS
- Unique Tax Haven: Appealing for individuals seeking to preserve wealth and businesses benefiting from local revenue engagement.
- Smart Launch Strategies: New companies should leverage phased CIT relief and ensure >75% local turnover for exemption.
- Luxury & Niche Markets: Monaco is best suited for high-margin industries—finance, luxury goods, professional services—over mass manufacturing.
- Regulatory Navigation Required: While highly advantageous, operating in Monaco involves navigating licensing restrictions and high operating costs with expert guidance.
Contact Us
Get in touch with the right people to get the right help in setting up your business in Monaco.
Contact us at:
enquiries@chandrawatpartners.com.
enquiries@chandrawatpartners.com.