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The main principal of Monaco's fiscal system is the total absence
of direct taxation. There are two exceptions to this principal :
- Companies earning more than 25% of their turnover outside of the
Principality and companies whose activities consist of earning revenus from patents and literary
or artistic property rights, are subject to a tax of 33.33 % on profits.
- French nationals who are unable to prove that they resided in the Principality for 5 years before October 31, 1962.
Apart from with France, the Principality has signed no other bilateral fiscal agreements.
Individuals
Persons residing in Monaco (except French nationals) do not pay tax on income,
on betterment or on capital. For French nationals, two distinct categories exist :
- French nationals who can prove that they resided in Monaco at least 5 years before
October 31, 1962 are subject to the same system as other nationalities.
- Other French residents are subject to French income tax collected by the French administration.
Assets located in Monaco are subject to the following inheritance tax rates :
in direct line of descendance : 0%
between brothers and sisters : 8%
between uncles and nephews : 10%
between relatives : 13%
between non-relatives : 16%
Businesses
There is no direct tax on companies apart from the tax on profits mentioned
in the previous cases.
Fiscal stamps and registration duties
Fiscal stamps must be obtained for all official civil and judicial acts.
In addition, all documents which could be produced as evidence in a court of law must be stamped in
order to be valid. Stamp costs are either a fixed fee or depend on the format of the document or
the values involved in the acts. Registration duties are collected for the registration of real estate
transfers or change of ownership. The most commonly applied rates are as follows :
1% for leases, subscription or transfer of shares in a company
6,5% for the sale of real estate
7,5% for the transfer of goodwill, clientele or real estate
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