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Taxation
The only direct tax is a tax on the profit of manufacturing and commercial activity. The Principality of Monaco does not have any other direct or local taxes, neither income or wealth tax, nor real estate tax or other taxes.
DIRECT TAXES
TAX ON THE PROFIT OF MANUFACTURING AND COMMERCIAL ACTIVITY
SUCCESSION TAX
To transfer to your children the fruit of many years' work without paying any tax is a windfall for everyone! The Principality of Monaco has special advantageous succession taxation, according to which heirs of all the foreign and French citizens, as well as residents of Monaco, being the residents of the principality at the moment of their death, are taxable at the following rates:
- Heirs of the first line and conjoints - 0%;
- Brothers and sisters - 8%;
- Nephews and nieces - 10%;
- Alliance, not mentioned above - 13%;
- Individuals, not kindred to decedent - 16%;
This taxation is applied to all the property, situated in Monaco, no matter what nationality, temporary and permanent residence countries of the heir are. At the same time, taxation of Monaco can't be an obstacle to the application of the succession taxation, imposed in the country of citizenship of the deceased.
INVESTMENTS IN REAL ESTATE
Such advantageous taxation system turns Monaco to an exclusively attractive and prestigious center for real estate investments
According to the legislation of Monaco, possession of any property, situated on the territory of the principality, grants to its owner the following privileges in taxation
- Exemption of real estate lease income tax;
- Exemption of wealth tax;
- Exemption of real estate sale income tax.
INVESTMENT TRUST
The Principality of Monaco is one of few countries, who have passed a law about trusts, allowing to individuals, citizens of the counties with trust law, to establish trusts out of the principality with the possibility of their registration in Monaco. The legislation of Monaco allows to manage trusts out of the principality subject to the following conditions:
- Establishment of reserve fund must be permitted by the legislation of the country of origin of the founder;
- Certificate, confirming the fact of possibility of establishment of the trust reserve fund accordingly to the legislation of the country of origin of the founder, made by known advocate of this country, must be enclosed to the deed of trust establishment;
- Any trust deeds or its testament must be made in the form of notarial act of Monaco;
- Mandataries of the trust (or mandataries, stipulated in testament) must be selected from the list of individuals, who have a right to enter the trust, that is submitted to tribunal of Monaco;
- At least, one mandatary of the trust must be a legal entity (orit may be an individual). This person also must be selected from the list, submitted to tribunal of Monaco.
There is no succession tax for trusts in Monaco, at the time that registration fees are payable at the following rates:
- One beneficiary - 1,3%;
- Two beneficiaries - 1,5%;
- More than two beneficiaries - 1,7%.
In the case, if all trust investments are placed in Monaco, registration fees are payable at the following rates:
- One beneficiary - 0,5%;
- Two beneficiaries - 0,25%;
- More than two beneficiaries - 0,45%,
Welcomes all foreign citizens
The Principality of Monaco always welcomes all foreign citizens, willing to reside here (in this case, it is necessary to stay on the territory of the country not less than 6 months and one day a year).
Real estate agency Access Properties Monaco will take care of all the formalities and provide you its assistance and services!
