Summarising the biggest taxation benefit, the first two years the income and profit of your business activity can be completely tax free in the Principality of Monaco.
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.
Summarising the biggest taxation benefit, the first two years the income and profit of your business activity can be completely tax free in the Principality of Monaco. However it does not mean that the activities are Value Added Tax (VAT) free.
In Monaco you have to make a difference between Value Added Tax and Business Profit Tax.
The Value Added Tax is levied on the same basis and at the same rate as in France. The intra-Community tax regime has been applicable since 1 January 1993.
Any business carrying out an industrial or commercial activity and generating for more than 25% of their turnover outside Monaco is subject to Business Profit Tax from the third years of its operation. This is also true for firms whose activities consist of earning revenues from patents or artistic property rights.
The Business Profits Tax is 33.33% on profit. It is a great model, which truly motivates the businesses to gain revenue. In case your company is not profitable you have no obligation to pay tax.
Interestingly it is a small gap for some privately owned companies, because many owners take out the profit as an annual bonus, compensation or benefit and leave the company with a very small line of profit before taxation. Probably this is also the answer to the question why Monaco has so many sole trader companies. It is a question of morality, but frankly the legislation allows you this possibility and it is part of the local business life.
Do you have a question?
Monaco Wealth Management is working with the some of the most experienced advisors in the Principality of Monaco.
Since 2010 we gained a member base of 9,000 Monaco residents, and our trusted partner, VK*P business advisors have over 3,000 people informed and guided on business and residency matters. If you have any questions about Monaco residency, business formation or business development we are happy to assist you in English, French, Italian and Spanish. Please feel free to contact us.
Selected UHNW Business Club Members
Networking for UHNW Industry Leaders
The UHNW Business Club by Monaco Wealth Management brings together leaders in the HNW and UHNW industry for the purpose of expanding and growing key relationships within this niche market.
UHNW Business Club is running exclusive bespoke networking events designed to connect, educate and expand global business relationships.
To become a member of the UHNW Business Club, we charge an annual membership application of €599.00.
UHNW Business Leaders Networking Evening in London, UK (22 January 2020)
Join us for a wonderful evening at the exclusive Vault Bar and connect with leaders from the UHNW industry from Monaco and London.
22 January 2020 (Wednesday)
18:30 - 21:00
The Vault, Revolution Bars
Live demonstration of the YAMBA platform and a case study on Walt Disney's data transformation.
28 January 2020 (Tuesday)
18:00 - 19:30
CREM (Foreign Residents' Club of Monaco)
1, Avenue Princesse Grace
UHNW Business Club Evening in Monte-Carlo, Monaco (17 April 2020)
Welcome to Monte-Carlo. Join UHNW industry leaders and UHNW business owners for an interactive networking evening in Monaco.
17 April 2020 (Friday)
17:30 - 21:00
TV Art Live Gallery
Rue du Berceau
UHNW Business Club Newsletter
Interested to learn more about the Principality of Monaco?
Monaco: The Essential Relocation Guide
“Monaco: The Essential Relocation Guide” This comprehensive book is dedicated to all current and future residents of the Principality of Monaco.
In this book, contributing authors André C Perry, Charlotte Easterbrook and Zsolt Szemerszky have compiled the most important and vital information required to help guide you through the process of relocating to the Principality of Monaco. Being independent experts, they also spiced up the chapters with their personal knowledge on the relocation process to create this in-depth and essential relocation guide.
Living in Monaco
Living in Monaco book is a professional relocation itinerary written by Zsolt Szemerszky.
A comprehensive, objective and brutally honest book about the Principality of Monaco and its living environment. The author intended to hunt down the myth around Monaco and to go beyond gossips.
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.