--- title: "Monaco tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/monaco/tax/ lang: en updated: 2026-10-10 --- # Monaco tax Special regime for new residents: Two years without corporate income tax, then reduced profit base. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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. (source 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 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Which visas the regimes apply to - **Two years without corporate income tax, then reduced profit base**: [Business owner card](https://settleanywhere.com/countries/monaco/residence-business-owner/). 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. (source 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 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) 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. (sources 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 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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 1. [Tax in Monaco](https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/general-information/tax-in-monaco) · Government of Monaco (MonEntreprise) · checked 2026-10-11 2. [Corporate income tax](https://monentreprise.gouv.mc/en/themes/accounting-obligations-and-tax/tax/other-taxes-and-duties/corporate-income-tax) · Government of Monaco (MonEntreprise) · checked 2026-10-11