Monegasques and residents of the Principality, with the exception of French nationals governed by the Franco-Monegasque bilateral convention of 1963, are not subject to income tax, or taxes on capital gains.
Outside of France, the Principality has signed no bilateral tax agreement.
Assets located in Monaco are subject to inheritance or donation taxes depending on the degree of kinship as shown below:
Among parents, children or spouses: 0%
Among brothers and sisters: 8%
Among uncles, aunts, nieces and nephews: 10%
Among relatives other than brothers, sisters, uncles, aunts, nephews or nieces: 13%
Between non-relatives: 16%
Businesses in Monaco are not subject to any direct taxation. Businesses whose turnover for sales outside of the Principality exceeds 25% are subject to an income tax of 33.3%.
The Value Added Tax is calculated at the same rates as in France. The most commonly applied rates are:
The standard rate of 20%
The rate reduced by 10%, apart from the basic goods (5.5%)
The VAT is also applied to real estate transactions made by a taxable person acting as such.
Registration fees are either proportional or fixed. The flat fee is generally 10 €. The most commonly used rates are:
A 1% fee applicable to leases, charged on the amount of annual rent plus expenses
A 5% fee on the sale of personal property, this fee is reduced to 2% for certain public auctions
A 6.5% fee on sales of real estate
A 7.5% fee on profit property transfers or inventories transfers