Luckily Monaco’s tax regime is built on some extremely supportive pillars however and despite the common belief Monaco is not an offshore jurisdiction, but Monaco also offers anonymous taxation.
Despite the common belief Monaco is not an offshore jurisdiction. Having a business in the Principality involves various taxation obligations as well. Luckily Monaco’s tax regime is built on some extremely supportive pillars.
The Principality’s main source of income is the value added tax (VAT), which is paid on goods and services in the usual way. The main attribute of Monaco’s fiscal policies is the total absence of direct taxation for Monégasque residents as there is no income tax, capital gains tax or wealth tax.
As a new business owner you have the possibility to start and build up your business without interfering with any taxation issues. During the first two years of business operation your company is tax free, which can highly support the establishment and improvement of your business.
After three years you will be due to pay tax, but not based on your income. In the Principality of Monaco the corporate taxation is mainly based on revenue. Therefore you only pay tax if you are able to gain profit from your business activity.
Without any doubt Monaco’s taxation is very attractive for businesses comparing its profit based taxation method to most of the income based taxations offered by other countries.
Monaco also offers anonymous taxation. If you are investing in Monaco and you are not maintaining a residency there, since you are not staying for more than six months a year, you are probably obliged to pay tax based on your actual residency.
In Monaco you will find banks that are ready to help you in the taxation issues without disclosing your actual wealth held in the Principality to your country of origin. The name of the solution is Taxation of Saving Income.
The Taxation of Saving Income is a European directive, which introduced a withholding scheme as an alternative to the exchange information. This withholding tax has been applied in Monaco since 1st July 2005, in accordance with a convention between the Principality of Monaco and the European Community. The revenue from this withholding tax is paid every year.
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Living in Monaco
It is available for purchase in English at: http://amzn.com/1496107004
The author Zsolt Szemerszky intended to hunt down the myth around Monaco and to go beyond gossips. Zsolt is also know by releasing Monaco’s first gourmand book. The Signature Dishes of the Principality of Monaco was launch last December 2016 as the number one release in wine pairing at Amazon.com allows gastronomy lovers to discover the excellence of the Principality of Monaco thanks to recipes and interviews with Executive Chefs who hold together over 50 Michelin stars.
However Living in Monaco is significantly different from his other books. It is not a travel book, it is an ultimate guideline to those who are aiming to get a glimpse about the real Monaco and who have the desire to relocate their personal or business life to the Principality.
The book explains the benefits of the relocation (both for private and business reasons), the life quality in the Principality, and reveals how can one capitalise the unseen treasures and business potentials of Monaco. The “Relocation and what it takes” chapter also explains all the tiny details, traps, tips and best practices while it offers a detailed overview of the administrative mechanism of the Principality.
One of the interesting part of the book is the second part which focuses on the people, the opportunities, and the traps in Monaco. It offers a first hand guidance to avoid to fell for the catchy workings and the illusions of luxury. Understanding the real-life examples one can truly enjoy the Principality with all its safety and protective legal systems for families and businesses.
The book is available for purchase in English at: http://amzn.com/1496107004