TAXATION IN MONACO

One of the advantages of the Principality is not only its climate and its natural environment, a so-called soft taxation for natural persons, indeed the absence of any income tax results from an ordinance taken in 1869 by Prince Charles III.

The only direct tax levied in the Principality is the tax on profits from industrial and commercial activities. There is no wealth tax, property tax or housing tax in the Principality.

Personal taxation

Residents of the Principality, with the exception of French nationals, are not subject to income tax. However, the absence of personal income tax concerns only activities or persons actually and actually established in the territory of the Principality.

Inheritance or gift tax applies to property situated in the territory of the Principality or which has its tax base there, regardless of the domicile, residence or nationality of the deceased or the donor (subject to the provisions of the Franco-Monegasque Convention of 1 April 1950).

Tax rate:

The level of taxation depends on the degree of kinship between the deceased and his heir:

In direct parent-child filiation or between spouses 0%
Between siblings 8%
Between uncles, aunts, nieces and nephews 10%
Between collaterals other than brothers, sisters, uncles, aunts, nephews or nieces 13%
Between non-relatives 16%

Corporate taxation

In Monaco, there is only one corporate tax, and that is the income tax. However, only companies which carry out an industrial or commercial activity and which achieve more than 25% of their turnover outside Monaco are subject to this tax, the rate of which is 33.33%.