Monaco Residency

TAXATION IN MONACO

In addition to its climate and natural environment, one of the advantages of the Principality is its so-called "soft" taxation for individuals, as the absence of any income tax is the result of an ordinance issued 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.

Taxation of individuals

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

Inheritance or gift tax applies to assets located on the territory of the Principality or which have their base there, regardless of the domicile, residence or nationality of the deceased or donor (subject to the provisions of the Franco-Monegasque Convention of 1st April 1950).

Tax rates :

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

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

Corporate Taxation

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

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