Monaco applies a territorial system of corporate income tax (Impot sur les Benefices, 25%), limited in scope to commercial or industrial businesses that derive more than 25% of their turnover from activities outside Monaco; most purely local trading and holding companies fall outside the tax's scope entirely. Monaco levies no personal income tax on residents (since 1869), with a narrow exception for French nationals under the 1963 Franco-Monegasque Convention, described elsewhere on this page.
A specific statutory tax year-end is not confirmed in available primary sources beyond the general corporate accounting period; confirm current filing deadlines directly with the Monaco Direction des Services Fiscaux before relying on this page.
25% (Impot sur les Benefices), but only on companies deriving more than 25% of turnover from activities outside Monaco; most local trading and holding companies are effectively outside the tax's scope.
No personal income tax for residents (in place since 1869), with the narrow exception of French nationals taxed by France under the 1963 Franco-Monegasque Convention.
20% standard, applying the French VAT system under the Monaco-France customs union (reduced rates of 10%, 5.5%, and 2.1% also apply).
An individual is tax resident in Monaco if present 183 days or more per year. Establishing residency requires a carte de sejour and a tax residency certificate. Given Monaco has no personal income tax for non-French residents regardless of income source or amount, residency status primarily matters for the French-national exception (below) and for social security/administrative purposes rather than triggering any Monegasque personal tax liability.
French national exception: French citizens residing in Monaco generally remain subject to French income tax under the 1963 Franco-Monegasque Convention, regardless of actually living in Monaco. Narrow exceptions exist (e.g., residence in Monaco established before 1957, or 5+ years' residence before October 31, 1962, or marriage to a Monegasque national, or specific dual-nationality situations settled before December 29, 1995).
Operations carried out abroad through a permanent establishment, a dependent agent, or a full commercial cycle conducted abroad are not taxed in Monaco under its territorial principle, but are taken into account when determining the proportion of turnover generated outside Monaco for purposes of the 25%-of-turnover threshold that brings a company within Impot sur les Benefices in the first place. The management and service activities of an international group's Monaco headquarters may themselves be taxed in Monaco in respect of their contribution to the group's overall turnover, determined under specific rules, even though headquarters activity does not itself qualify as industrial or commercial activity.
Monaco has no Controlled Foreign Company regime.
Deduction of interest paid by a Monegasque company to controlling shareholders is denied where aggregate shareholder loans exceed 50% of the borrower's share capital. Separately, net interest expenses generally are deductible only up to the higher of EUR 3 million per fiscal year or 30% of taxable result - Monaco's ATAD-style interest limitation rule, functioning alongside the shareholder-loan ratio as the jurisdiction's principal base-erosion safeguard given the absence of CFC rules.
Monaco classifies entities under its own domestic Ordinances rather than offering an elective check-the-box system, and no ATAD2-style anti-hybrid mismatch regime addressing double-deduction or deduction-without-inclusion outcomes has been identified, consistent with Monaco having no CFC rules of its own.
No domestic FBAR-equivalent regime requires Monaco residents to separately disclose foreign financial accounts. Monaco is a CRS participating jurisdiction and exchanges financial account information with partner tax authorities, including under its close relationship with the EU and France. US persons remain independently subject to FinCEN Form 114 (FBAR) and potentially Form 8938 regardless of Monaco's own rules.
Dividends received by a Monaco company can be exempt from tax, with the exemption depending on the size of the equity holding in the distributing company; a specific minimum-ownership threshold and holding-period requirement is not confirmed in available primary sources beyond the general existence of the exemption.
A company that receives foreign-source income already subject to withholding tax or income tax in the source country may offset that foreign tax against Monegasque corporate income tax, depending on the category of income; for the purpose of calculating the tax due, the amount of foreign tax is added back to the company's gross income before the credit is applied. Provisions in Monaco's tax treaties, where they exist, override domestic tax provisions.
Monaco has a very limited tax treaty network. The 1963 Franco-Monegasque Convention is by far the most significant bilateral tax agreement, primarily addressing the treatment of French nationals resident in Monaco (see above) rather than functioning as a conventional double-tax-relief treaty for a broad range of counterparties. Monaco's customs union with France means French VAT and customs rules apply directly rather than through a separate treaty mechanism.