Tax aspects

Monaco does not levy income tax from its residents.

Non-resident natural persons and legal entities are not subject to any direct taxation in Monaco.

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

  • US persons: for this category of clients, the Monegasque banks may act as Qualified Intermediaries (QI) and must therefore declare sources of revenue from US securities to the IRS. This declaration is nominative.
  • EU residents: pursuant to the agreement between the Principality of Monaco and the European Community dated 7 December 2004, Monegasque banks levy a withholding tax on interest income which is paid by the Principality to the European countries concerned. This withholding tax (35% as from 1 July 2011) dispenses the Principality from disclosing the identities of the clients concerned.
  • French tax residents: Monegasque banks complete a tax form (imprimé fiscal unique - IFU) stating all the revenues from securities and all the securities transactions carried out by the paying entity.
  • French nationals living in Monaco are subject to French income tax and wealth tax, under certain conditions.