Skip to content

by Zsolt Szemerszky

Zsolt Szemerszky

Corporate Taxation

Corporate Taxation

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.

Unlock Members only contents

Our membership offers you access to the member’s only content of the Living in Monaco website. The membership gives you immediate access, and you can cancel your subscription at any time.


Already a member with a valid subscription?

Business formation

We can help you to establish your business in the Principality of Monaco in the most efficient way.

Since 2010, we are working with some of the most experienced advisors in the Principality of Monaco. We can help you to identify the right corporate structure, to find the desired office space, and to implement your branding and revenue strategy to the local business scenery.

discover more

Monaco residence permit

With 10 years of local experience, we offer unparalleled guidance for new residents in the Principality of Monaco. We can help you and your family to settle, to find a school, to register your car, and to feel at home in Monaco from the very first day.

discover more

Bank account opening

Through our trusted and Government authorised Monaco bank we are able to offer exceptional banking services. It is a unique opportunity to open private, corporate and trust accounts, both for Monaco residents and non-Monaco residents.

discover more

Marketing & Brand awareness

Thanks to our exclusive partners, including the branding and marketing strategists, we can offer you online, printed and luxury television campaigns, reaching our every household and hotels in Monaco.

discover more

Many thanks to our main Sponsor