Tax in Monaco

One of the characteristics of the Principality is favourable taxation for individuals.  The lack of income tax dates back to an Ordinance by Prince Charles III in 1869. 

The only direct tax in the Principality is a tax on the profits of industrial and commercial activities.  There is no wealth tax, annual property tax or council tax.

Individual Taxation

Monegasque nationals and residents in the Principality, with the exception of French nationals, who are regulated by the 1963 Bilateral Convention between France and Monaco, are not liable for income tax.  However, the lack of income tax for individuals only relates to activities that are carried out and persons who are genuinely established in the Principality of Monaco.  It does not affect rules applied by other States.

Tax on inheritance and gifts only applies to assets that are situated in the Principality of Monaco or with situs in Monaco, regardless of the domicile, residence or nationality of the deceased person or donor (subject to the provisions of the Convention between France and Monaco of 1^st April 1950). 

Business Taxation

• Corporate Income Tax

Business carrying out an industrial or commercial activity and generating for more than 25% of their turnover outside Monaco are subject to Business Profit Tax.

• VAT

Value Added Tax (VAT) is levied on the same basis and at the same rate as in France.  The intra-Community tax regime has been applicable since 1^st January 1993.

As part of developments in electronic administration, un a new teleservice is available to people who are liable for VAT.  This service is optional and free of charge.  It makes it possible to declare and pay VAT on line, and, if applicable, the flat-rate tax on precious metals.  Click here to enrol for the VAT e-service.

• Real Estate VAT

 VAT is applied to the supply of real estate by a taxable person acting as such.

• Customs regulations

The French and Monegasque territories, including their territorial waters, constitute a customs union, as established by the Customs Convention of 18^th May 1963.  The French Customs Code therefore applies in the Principality of Monaco.  Because of its customs union with France, and to ensure that this bilateral agreement is strictly applied, the Principality is included in the European Customs Territory (even though it remains a third state with regard to the European Union).  Goods and services in the Single European Market can thus be accessed from Monaco.

Other Duties and Taxes

• Registration fees

Registration fees are payable for registration formalities, either at a proportional rate (the usual rates are between 0.5% and 7.5%), or a fixed rate (of 10 €).

• Other fees and taxes
  • Stamp tax (a form of document registration tax)
  • Tax on the distribution and consumption of alcohol
  • Tax on insurance contracts
  • Tax on beverages
  • Tax on precious metals

In the Principality of Monaco, duties and taxes on beverages and precious metals are subject to the same regulations as those applicable in France.  They are established on the same basis and at the same rates.

The general regime applicable to intra-Community exchanges of products subject to excise duties has also been in force in Monaco since 1^st January 1993.