How corporate tax works in Monaco
Monaco does not impose a general corporate income tax on businesses that mainly operate inside the Principality. The business profit tax applies to industrial or commercial companies that generate more than 25% of turnover outside Monaco, as well as to certain patent, trademark and copyright income.
The standard rate is 25% for financial years beginning on or after 1 January 2022. Administrative offices are taxed on a special flat basis equal to 40% of annual operating expenses if that method produces a higher taxable result than ordinary rules.
{ "New qualifying businesses get relief": "no tax in years 1 and 2, then tax on 25% of profit in year 3, 50% in year 4, 75% in year 5 and 100% in year 6. Annual filings are due in the final three months of the accounting period, or before 1 April if the company uses a calendar year." }
Tax rates at a glance
- Corporate profits tax
- 0% / 25%Standard rate
- Standard company tax
- 25%
- Foreign turnover test
- >25%
- New business relief
- 0% years 1-2
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Remote foundersHolding companiesInvestorsRegional operatorsHigh earners
Watch out for
- The 25% outside-Monaco test is the key scope rule. A Monaco company with local operations can still be in tax scope if enough turnover is outside the Principality.
- Employers still need to budget for VAT, customs rules and Monaco payroll social contributions alongside corporate profit tax.
- There is also a separate annual reporting duty for some payments to French residents or French nationals in Monaco without a residence certificate.
Frequently asked questions
Does Monaco have corporate income tax?
Yes, but only for limited cases. Most companies operating mainly in Monaco are outside the tax, while industrial or commercial companies with more than 25% of turnover outside Monaco are in scope.
What is the Monaco corporate tax rate?
The standard business profit tax rate is 25% for fiscal years beginning on or after 1 January 2022.
Do new companies get relief in Monaco?
Yes. New qualifying businesses can get two years at 0%, then a phased uplift over years 3 to 6.