Residency

Establishing residency in not usually an easy process, and it does take time. So, be prepared to spend at least four to six or more months completing the process. Professional assistance can sometime expedite the process, but this can not be guaranteed. For more information on establishing residency in the Principality, click here or on the heading of this paragraph.

Investment in Monaco

Generally, there are no restrictions on foreigners or non-residents from opening bank and brokerage accounts in Monaco or from buying real property. Monaco has money-laundering laws that require a bank or anyone dealing with funds received from another person to know the source of the funds. These laws normally pose no problem for legitimate persons.

Income Taxation

Monaco is not a "tax haven", but its income tax rates are generally low, and, when they apply, there are often many exemptions and other ways to minimize the tax due. Normally, individuals pay no tax on earnings from personal services, such as, from consulting. Businesses also do not pay income taxes, unless more than 25% of their turnover is outside Monaco, in which case, they pay taxes similar to those they would pay if in France. The question of whether activities are within Monaco, and hence not counted for turnover outside Monaco is not always an easy one to answer.

Estate and Inheritance Taxes

Monaco has a "succession tax" that applies to transfers decedents or their estates. The rate varies according to the relationship to the decedent, and the tax is paid by the recipient, unless otherwise agreed. The rate is generally zero for very close family relationships and a maximum of 16% for persons with no relationship to the decedent.

Value Added Taxes

Monaco follows the French Value Added Tax ("VAT" in English and "TVA" in French) system, currently 20.6% of the value of a taxable transaction. For businesses and certain individuals, this tax may be recoverable. Thus, if someone entitled to recover TVA pays more TVA than collected, the Government refunds the excess paid.

Government Incentives for New Businesses

In some cases, there are Government subsidies to new businesses and also established businesses that increase their staff. The preceding link provides some general information about what is available.

Useful Addresses and Professional References

• Certified Public Accountants
• Litigation Attorneys ("Barristers" or "Litigators")
• Legal Counselors and Advisors ("Solicitors")
• International and Local Banks
• Important Government and Related Addresses
• Authorized Law 214 Trustees
• Authorized Law 214 Attorneys

Translations of Selected Monaco Laws

• Analysis of Monaco Law No. 1144 on Commercial activities in the Principality
  • Unofficial Translation
  • The Firm's Analysis
• Analysis of Monaco Law No. 1162 on the Fight against Money Laundering
  • Unofficial Translation
  • The Firm's Analysis
• Analysis of Monaco Law No. 1194 regulating Financial Services
  • Official text from the Journal de Monaco
  • Unofficial Translation
  • The Firm's Analysis
• Analysis of Sovereign Ordinance No. 13184 implementing Law No. 1194
  • Official text from the Journal de Monaco
  • Unofficial Translation
  • The Firm's Analysis
• Soverign Ord. No. 13243 appointing the Commission under Law No. 1194
  • Official text from the Journal de Monaco
  • Unofficial Translation

Translations of Selected Monaco Treaties

• October 24, 2002, Treaty with France on Cooperation and Relations
  • Official text form the Journal de Monaco (to be supplied)
  • Unofficial Translation (to be supplied)
  • The Firm's Analysis
• 1940 Extradition Treaty with the United States
  • Official text form the Journal de Monaco (to be supplied)
  • Unofficial Translation (to be supplied)
  • The Firm's Analysis (to be supplied)