Monaco » Taxes

Gift and Inheritence Tax	Real Estate Transfer Tax	Corporate Tax	VAT

Gift and Inheritance Tax

Assets situated within Monaco are subject to estate taxes. For those in direct-line (wife, parents, or children) to the deceased the tax is zero regardless of the amount. Gifts or inheritances to brothers and sisters are taxed at 8%; uncles, aunts, nephews, nieces at 10%; other blood relatives at 13%; unrelated parties and foreign charities at 16%. Securities held by a Monaco bank are subject to inheritance taxes. To avoid Monaco’s estate, inheritance and gift taxes, an offshore trust or holding company located in a no-tax haven is recommended.

Real Estate Transfer Tax

Real estate taxes in Monaco are more or less nonexistent. This however, is not a windfall or loophole the investor can exploit because transfer taxes on the sale of a real estate property situated in Monaco can amount to 16% or more.

Monaco requires all transfers of real estate to be registered, with a 7.5% fee going to the State. More fees of 3% to a Notaire, and 3% to 6% to the real estate agencies can be expected. Turning-over a real estate property for a quick profit is not possible with expenses these high, but there are some steps you can take to duck these transfer taxes.

Corporate Tax

Monaco’s corporate tax rate is a flat 35%, but this can be circumvented with a little planning.

VAT

VAT in Monaco is 19.6%.