Monaco tax
Special regime for new residents: Two years without corporate income tax, then reduced profit base.
Checked against official sources on Change log
Special regimes for new residents
Special regime
Business start-up scheme: two years without corporate income tax, then reduced profit base
Tax relief
Details
New businesses are exempt from corporate income tax for two years, then taxed on 25%, 50% and 75% of profit in years 3 to 5. 2
Taxed on
Profit of the new business: 0% in years 1 and 2, then 25%, 50%, 75% and 100% of profit in years 3 to 6.
Who it applies to
- Firms created in Monaco that are within the scope of corporate income tax and carry on a genuinely new business.
Tax residence
Applies to firms created in Monaco.
Visas
Relevant to business owners holding a business permit and residence card.
Other taxes
The standard corporate rate after relief is 25%.
Checked against official sources on Change log
Which visas the regimes apply to
- Two years without corporate income tax, then reduced profit base: Business owner card. Relevant to business owners holding a business permit and residence card.
Standard rules and foreign-source income
Standard rules
Personal tax: no income tax for residents other than French nationals
0% tax
Details
- On: No personal income tax
- Who: The exemption covers activities carried out in
Monegasque nationals and residents, except French nationals, pay no income tax in Monaco. 1
Taxed on
No personal income tax; the only direct tax is the tax on profits of industrial and commercial activities.
Who it applies to
- The exemption covers activities carried out in, and persons genuinely established in, the Principality.
- Monaco levies no wealth tax, annual property tax or council tax.
Exclusions
- French nationals are governed by the 1963 France-Monaco tax convention.
- The exemption does not affect the rules applied by other States.
Tax residence
The exemption is defined by genuine establishment in Monaco.
Visas
A residence card is the basis of establishment in Monaco; the card itself does not grant the tax position.
Other taxes
VAT is levied on the same basis and at the same rates as in France; registration duty is 0.5% to 7.5% or a fixed EUR 10 (≈ $11); inheritance and gift tax applies only to assets in Monaco.
Checked against official sources on Change log
Standard rules
Corporate income tax: 25% for companies earning over 25% of turnover outside Monaco
25% tax
Details
- On: Taxable profit after deducting expenses
Commercial and industrial businesses earning more than 25% of turnover outside Monaco pay corporate income tax at 25% for financial years starting on or after 1 January 2022. 2 1
Taxed on
Taxable profit after deducting expenses, including the pay of the entrepreneur and directors who work in the firm.
Who it applies to
- Firms carrying out industrial or commercial activity with more than 25% of turnover generated outside Monaco.
Exclusions
- Income from patents and copyright is outside the tax if received by natural persons, but taxable when received by companies.
- Capital gains on asset sales may be exempt if reinvested in the firm under conditions.
Tax residence
The nature of the activity and the location of transactions decide liability, not the legal form.
Visas
Independent of the residence card.
Other taxes
VAT follows French rules and rates.
Checked against official sources on Change log
VAT, social security and other taxes
- VAT is levied on the same basis and at the same rates as in France; registration duty is 0.5% to 7.5% or a fixed EUR 10 (≈ $11); inheritance and gift tax applies only to assets in Monaco.
- VAT follows French rules and rates.
- The standard corporate rate after relief is 25%.
Questions people ask
Who qualifies for Two years without corporate income tax, then reduced profit base?
Firms created in Monaco that are within the scope of corporate income tax and carry on a genuinely new business. Relevant to business owners holding a business permit and residence card.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (2)
Official sources
- Tax in Monaco · Government of Monaco (MonEntreprise) · checked 2026-10-11
- Corporate income tax · Government of Monaco (MonEntreprise) · checked 2026-10-11