Taxation
Monaco is a country offering “soft” taxation to its residents. Following a sovereign order taken in 1869 by Prince Charles III, there is a total absence of any income tax. There is therefore no wealth tax, property tax or income tax with the exception of French nationals governed by the Franco-Monegasque bilateral convention of 1963.
Only industrial and commercial activities may be subject to pay profit tax. (see paragraph -> Profit Tax)
Inheritance Tax
The very advantageous inheritance regime in place in the country is only valid for properties located on Monegasque territory. This includes real estate but also bank accounts and other financial investments based in the Principality, regardless of the residence or nationality of the deceased.
Among these advantageous measures in terms of inheritance and gift taxes, there is no right to pay directly. For other configurations the following rates apply:
| In direct parent-child relationship or between spouses | 0% |
| Between brothers and sisters | 8% |
| Between uncles, aunts, nephews and nieces | 10% |
| Among collaterals other than brothers, sisters, uncles, aunts, nephews or nieces | 13% |
| Between non-relatives | 16% |
(Source : Gouv.mc, 2024)
Profit taxes :
Companies are taxable on their profits only if their commercial or industrial activity generates a turnover of more than 25% outside Monaco.
VAT in Monaco – Value added tax
The collection of value added tax in the Principality is carried out at the same rates as in France since the establishment of the intra-community regime dating from January 1, 1993.
