Starting a business in
🇲🇨Monaco
Checked November 4, 2026 · How we score
Corporate tax
25%
Top income tax
0%
Setup from
$8,000
all-in, first year
Time to form
13 weeks
visit usually needed
Taxes in Monaco
| Corporate income tax | 25% 25% on profits of companies carrying on commercial activity that generate more than 25% of turnover outside Monaco; companies with mostly in-Monaco revenue are generally outside the scope of corporate income tax. New-company transitional relief may apply. |
|---|---|
| Personal income tax (top) | 0% No personal income tax on residents, except French nationals who remain subject to French tax under the 1963 Franco-Monegasque convention. No wealth or inheritance tax for direct heirs. |
| Tax system | No personal income tax |
| Capital gains tax | 0%No capital gains tax for individuals; business-asset gains are part of taxable profit; real-estate transfer duty is 4.5% to 7.5%. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | 20% |
| Social security | Employer social charges are substantial (roughly 25-30% of gross pay) and self-employed contributions are due; Monaco follows the French VAT system. |
Forming a company in Monaco
| Usual entity | SARL (limited liability company) or SAM (public limited company) |
|---|---|
| Minimum capital | $17k |
| Setup cost (all-in) | $8,000–$20k |
| Annual running cost | $15k–$40k |
| Time to incorporate | 13 weeks |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Hard |
Residency and visas
A residence permit requires proof of local accommodation (lease or purchase, among the most expensive in the world), proof of means, usually a substantial bank deposit with a Monaco bank, and a clean record. Approval is discretionary and the authorities may require physical presence.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 5/5 (1 = easiest) |
Special tax regimes
Monaco residency (no income tax)
Residents who are not French nationals pay no personal income tax, no capital gains tax and no wealth tax, in exchange for establishing a genuine home in the Principality.
25% turnover threshold
Corporate income tax applies only to businesses generating more than 25% of revenue outside Monaco, so purely local firms are untaxed while most export-oriented companies pay 25%.
Business authorisation requirement
Every commercial activity needs an authorisation from the Government (Direction de l'Expansion Economique), tied to premises and a defined business plan.
Pros and cons
Why founders pick Monaco
- No personal income tax or capital gains tax for non-French residents
- No dividend withholding tax
- High security, stable rule of law and prestige
- Euro currency and proximity to the French Riviera
Watch out for
- Extremely expensive property and office space
- 25% corporate tax for companies with more than 25% of revenue abroad
- Discretionary, slow business and residence authorisations
- French nationals are not exempt from French personal income tax
Best for: Wealthy individuals relocating for zero personal income tax · Locally oriented service businesses · Family offices and private-wealth management
Monaco: common questions
Does Monaco have a corporate tax?
Yes. Companies in commercial activity that earn more than 25% of their turnover outside Monaco pay 25% corporate income tax. Businesses earning most revenue within Monaco are generally not subject to it.
Does Monaco have personal income tax?
No, for residents who are not French nationals. French citizens living in Monaco continue to pay French income tax under a 1963 bilateral convention, unless they were established in Monaco before 13 October 1957.
How much does it cost to set up a company in Monaco?
Plan on roughly USD 8,000-20,000 in the first year for legal, notary and registration fees plus the EUR 15,000 minimum capital for a SARL (EUR 150,000 for a SAM). You also need business premises in the Principality, which is the largest ongoing cost.
Can a non-resident open a company in Monaco?
Not easily. Every business needs a government authorisation and local premises, the manager must show a clean record and means, and the process takes several months. A fully remote setup is not realistic.
Sources
- Monaco Government - MonEntreprise (Corporate income tax)
- Monaco Economic Board - Setting up in Monaco
- PwC Worldwide Tax Summaries - Monaco
Compare Monaco
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.