THE PRINCIPALITY OF MONACO
-
- Located to the extreme south-east of France, Monaco covers 2km2 and enjoys an exceptional geographical location. There is a mild climate all year round. At 31 December 2013, 36.950 people are living in Monaco which 8,837 Monegasque citizens and in 2016, 130 various citizenships The Principality offers to investors an exceptional safe life-style with the benefit of a « soft » taxation system. Unemployment is virtually non-existent.
-
- A Sovereign, independent State, stable, safe, open to the world, a State of Law committed to the respect of freedom and fundamental rights. Governed by the Constitution of 17 December 1962 (amended by law n° 1.249 of 2 April 2002), the Principality of Monaco is a constitutional and hereditary monarchy that affirms the primacy of the law over all institutions and which ensures the separation of powers The Grimaldi dynasty has presided over the Principality for over seven hundred years. Monaco is a hereditary and constitutional monarchy, based on the separation of executive, legislative and budgetary powers, making it exceptionally stable politically. Executive power is retained by the highest authority, the Sovereign Prince Albert II.
-
- Principality employs a moderate taxation system. The
absence of income tax in Monaco for effective residents in Monaco – except for French –
is the result of a Sovereign Order passed in 1869. Tax on benefits is due under specific
terms and conditions. From international tax point of view, Monaco has currently signed
36 bilateral agreements and international agreements (at 31/12/2018) of which 35 are
enforceable.
Value added tax “VAT” is payable on the same basis and at the same rates than in France. Intra-community VAT rules have been applicable since 1st January 1993.
- Principality employs a moderate taxation system. The
absence of income tax in Monaco for effective residents in Monaco – except for French –
is the result of a Sovereign Order passed in 1869. Tax on benefits is due under specific
terms and conditions. From international tax point of view, Monaco has currently signed
36 bilateral agreements and international agreements (at 31/12/2018) of which 35 are
enforceable.
-
- Inheritance and donation: various taxation rates are applied
according to the relationship between the deceased and the heir (s):
0% between parents and children, or between spouses;
8% between siblings;
10% between uncles, aunts, nephews and nieces;
13% between collateral relatives other than siblings, uncles, aunts, nephews and nieces;
16% between unrelated persons.
- Inheritance and donation: various taxation rates are applied
according to the relationship between the deceased and the heir (s):