Taxation


Taxation in Monaco is one of the benefits available to investors from all over the world..

fiscaliteThe general principle of Monaco's tax system is the total absence of any direct taxes. There are 2 exceptions to this principle :

  • Companies earning over 25% of their turnover outside the Principality and companies whose business in Monaco consists of receiving income from patents and literary or artistic property rights, are subject to a tax on profits of 33.33 %.
  • French nationals who are unable to prove that they resided in the Principality for 5 years before 31/10/1962 are subject to French income tax.
  • Apart from the agreements it has with France, the Principality has not signed any other bilateral fiscal agreements.

Private individuals

Private individuals residing in Monaco (except French nationals) are not subject to any tax on income, capital gains or capital in the Principality. For French nationals, only those who can prove that they resided in the Principality for 5 years before 31/10/1962 are subject to the same system.

Assets in Monaco are subject to the following inheritance tax rates :

  • direct descendant : 0 %
  • between brothers and sisters : 8 %
  • between uncles and nephews : 10 %
  • between relatives : 13 %
  • between non-relatives : 16 %

Businesses - Tax on profits

Businesses carrying out a commercial or industrial activity and generating over 25% of their turnover outside Monaco are subject to tax on their profits.

tva

VAT

Value Added Tax (VAT) is collected on the same basis and at the same rates as in France. The intra-community VAT system has been applicable in Monaco since 1st January 1993.

Real Estate Value Added Tax

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 18th May 1963. The French Customs Code therefore applies in the Principality of Monaco. Due to 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.

Stamp tax and 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 €).



Real estate selection : www.montecarlo-realestate.com