Financial centre

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The Principality of Monaco

The Principality of Monaco is an independent, sovereign State.

Monaco has a resident population of 35,000 people and a working population of 50,000. Its economy is concentrated on three sectors: luxury tourism and congresses, real estate and private banking.

The Grimaldi family has reigned in Monaco under a constitutional monarchy for over 700 years, giving the country unparalleled political stability.

Prince Albert II is the Head of State. The public powers are organised based on democratic principles and the judiciary system is independent.

Monaco’s exceptional geographic location, warm climate, safe environment, accessibility and cosmopolitan profile ensure an exceptional quality of life, particularly appreciated by wealthy individuals and their families.

Monaco’s resident population now comprises more than 125 different nationalities.

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The Financial Center

As a financial centre, Monaco is renowned for its private banking services.

At the end of 2011, 36 banks and 44 financial companies operated in Monaco.

Private banking and asset management in its broadest sense account for 20% of Monaco’s economic activity and more than 2,800 jobs.

Monaco has OECD-standard prudential supervision, exercised jointly by the Monégasque authorities and by the French regulator ACP (Autorité de Contrôle Prudentiel), and its specific regulations in terms of professional secrecy, as defined in Articles 308 et seq. of Monaco’s code of criminal law.

Moreover, the protection of privacy is a principle that is written into the Constitution and its enforcement is an ongoing priority for the Authorities.

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Banking secrecy

Private banking services are part of a strong culture of confidentiality to which CMB fully subscribes. Confidentiality in the private banking business is governed by the provisions relating to professional secrecy set forth in Articles 308 et seq. of the Monegasque code of criminal law.

It should be noted however that professional secrecy cannot be raised to the relevant supervisory authorities or Monegasque courts in the case of criminal proceedings.

Professional secrecy is an integral part of a private banker’s business and is applied in strict compliance with the regulations relating to prevention of money laundering as defined in Law 1.362 and Sovereign Order 2.318 of 3 August 2009.

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Tax aspects

Monaco does not levy income tax from its residents. Non-resident natural persons and legal entities are not subject to any direct tax in Monaco.

The clients of Monégasque banks may be subject to the tax declaration obligations applicable in many other countries, as in the specific cases of:

French nationals living in Monaco are subject to French income tax and wealth tax, under certain conditions.

Moreover, it should be noted that Monaco is included in the OECD white list of countries complying with OECD transparency standards.

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Moving to Monaco

Deciding to move to Monaco from a personal or business perspective is usually motivated by a number of criteria, one of the most important being the quality of life.

Apart from its climate, Monaco is an exceptionally safe environment, has access to a top-quality modern and international education system, a health service operated in line with the French system and, more generally, an excellent environment for living and working.

Monaco’s transport and communication infrastructure (Nice airport, Monaco railway station, access to the French motorway network and state-of-the-art data communication networks make it an ideal base for businesses and business leaders, with technical resources that meet all the requirements of international business.

With regard to taxation, Monaco has opted for a policy of not charging residents (natural persons) direct income tax. Businesses are subject to a corporation tax of 33.33% on profit after deduction of directors’ compensation.

To be eligible to become a Monaco resident the following conditions must be fulfilled:

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