• An independent sovereign state, and a member of the United Nations.

• Not a member of the European Union, but a member of the European Council and part of the EURO Zone.

• Bi-lateral treaties with France only, e.g.: taxation affecting French nationals / residents, VAT and customs.

• A signatory of the European Union Directive on taxation of savings effective from 1st July 2005, under which EU residents’ earnings on savings in Monaco will be subject to a withholding tax, however no automatic exchange of information with EU member states will take place.

• A signatory of the European Union Directive on taxation of savings effective from 1st July 2005, under which EU residents’ earnings on savings in Monaco will be subject to a withholding tax, however no automatic exchange of information with EU member states will take place.

• An approved state under the US Qualified Intermediary (QI) regulations, for the purpose of approving IRS intermediaries for US tax payers. The US IRS reviewed the Principality’s internal statutory controls and anti-money laundering regulations.

• Personal taxation for foreign residents (other than French nationals) is very favourable. There is no taxation on :
income
capital gains
wealth
real estate, including rentals

• As a civil law jurisdiction, Monaco has forced heirship. However, death / gift duties only apply to Monaco based assets on the following basis :
Relationship vs Rate :
- spouse, children, parents : nil
- brothers, sisters : 08%
- uncles, aunts, nephews, nieces : 10%
- other relatives : 13%
- unrelated persons : 16%

• One of the few civil law jurisdictions to have a trust law, enabling nationals whose country of nationality also has a trust law, to establish foreign trusts which are validated under Monaco law. This is one way for those nationals to neutralise the forced heirship rules.

• Resident and non resident foreigners may rent or own real estate in Monaco free of any property tax (other than transfer duty).

• Monaco welcomes foreigners wishing to take up residency (minimum presence of 180 days per annum is required). MONOECI Management is able to help with all the formalities and settlement necessities.

• Monaco in not an offshore jurisdiction since tax exempt offshore companies (IBC’s) cannot be constituted in the Principality.
Business activities in and from Monaco may be conducted in several forms:
- company limited by shares (S.A.M.)
- general partnership (S.N.C.)
- partnership limited by shares (S.C.A.)
- simple partnership (S.C.S.)
- non commercial partnerships (S.C.)
- sole proprietor
- Monaco branch of a foreign company
Corporate tax stands at 33 1/3 % (no corporate tax if the activity is in Monaco for more than 75% of the total turnover).