To foster the setting up of new businesses in the Principality of Monaco, the Prince's government grants subsidies for the creation and development of certain enterprise.

Exemption from company tax (I.S.B.)

Exemption from the payment of employer's social contributions All firms in the Principality of Monaco which create a new job, i.e., engage a person registered on the dole at the Employment Department of Monaco, pay their employers contributions but are reimbursed the corresponding amount at the end of each term for one year.

Tax Credit for Research

Firms subject to company tax, investing in research and development may be eligible for a tax credit worth 50% of the difference between the total spending on research in the year and the average spending during the two previous years.

Depreciation on real estate purchased for research purposes, staff provisions, and patent registration fees are included in the total expenditure.

The maximum total expenditure allowed is 40 million francs

Industry subsidies

Industrial firms in the Principality of Monaco can apply for an "industry" bonus to alleviate their maintenance charges.

The subsidy takes into account the economic and social interest of the first and the amount of rent. Official requests must be sent to The Department of Finance and Economy:

Improved interest rates

Firms in the Principality of Monaco can apply for special interest rates on bank loans.

Applications must be sent to The Department of Budget and Treasury:

Guarantee fund

The Government fosters the constitution of a guarantee fund in conjunction with the banks of the region in order to sustain the growth of economic activity in the Principality of Monaco. This fund is designed to guarantee assistance to the banks belonging to the fund in the framework of projects for the creation. transfer or development of enterprise.

When a bank judges the security of the loan-requesting firm to be insufficient, it can submit the application to the approval of the Guarantee Fund Committee on which the government is represented.

For additional reference material, see "Government Subsidies for Setting up a Business in Monaco", The Principality of Monaco, A Business Guide, Principality of Monaco, Department of Economic Expansion, 1996.