The attraction of Monaco as a place of residence and for the operation of businesses is well known.

Ever since 1869 when Prince Charles III ordered that there be no tax imposed on revenue the Principality has implemented a light taxation policy.

The only direct tax in Monaco is one imposed on profits made in industrial and commercial activities. There is no real-estate tax nor residence based taxation.

Monaco is geographically positioned at the heart of Europe, easy to reach and benefits from a favourable all-year-round climate. The French and Monegasque territories, including their territorial waters, form one customs union and French customs legislation is directly applicable in the Principality of Monaco. Monaco forms part of the Schengen Area.

Monaco is safe and secure, for residents, visitors and for business. It has an education system focused on personal development and success, and medical facilities which are at the forefront of modern technologies. It is the cultural capital of the region, with world-class concerts, ballet, night-life, arts, cuisine, fashion and sport.

Watch our video about taking up residence in Monaco.

The continuing development of Monaco

H.S.H. the Prince deploys a consistent ambitious foreign policy and on the international scene Monaco continues to reinforce close trusting ties with many countries.
Looking towards the future and guided by the project “Monaco 2029” Monaco will develop onshore business activities, while cultivating the existing interesting aspects of offshore activities.

Monaco is taking very seriously the goal of making the Principality attractive to investors and residents. In June 2011 H.S.H. the Prince launched the "Conseil stratégique pour l’attractivité" which has been set up to “consider questions related to economic development and future prospects” with a view to “formulate suggestions that would increase Monaco’s attractiveness, augment state revenues and orient public spending toward strategic goals."
In the urban development and transport sector the Principality has plans to manage the effects of the expansion of activity. It has recently invested more than €50 million in 5 new trains to cope with the increasing traffic: 100,000 cars enter and leave the Principality each day, with more than 14,000 people arriving by train, and a further €100 million is being invested in a new tunnel to ease access into the heart of Monaco.

In 2013 the Monaco government invested in a new fleet of 10 electric Smart cars for senior staff. It comes three years after Monaco bought its first 10 environmentally friendly cars. It is estimated that there are 600 electric vehicles being used in the principality - and there are more than 400 recharging points.

Construction has started on the €500 million project for a new hospital.
Whilst it is considered that there is enough space for development until 2020, with the mixed-use Odeon Towers project providing an additional 50,000m², afterwards an extension into the sea of 5-8 hectares will be needed to meet this growth. Construction of a six hectare pensinsula to be located near the Grimaldi Forum also started in 2017.
Public buildings are now be made according to the HEQ (High Environmental Quality) concept which privileges energy efficiency thanks to renewable energy.

 

Political and economic stability

Ruled by the Grimaldi family for more than 700 years, Monaco has a unique heritage and history, as well as a beautiful casino and harbour, and attracts over 5 million discerning tourists each year.

Prince Albert II, the son of Prince Rainier III and Grace Kelly, inherited the throne in 2005. The Prince is a leading international figure in the battle against climate change. Since 1993 he has led the Monegasque delegation to the General Assembly of the United Nations. In 2004, H.S.H. the Prince also presided over the delegation of Monaco in Strasbourg for the official ceremony of accession of the Principality to the Council of Europe as the 46th member state of that organisation.

H.S.H. the Prince is concerned to ensure that the Principality’s economic development is sustainable and undertaken in a spirit of ethics and transparency. He is also keen to ensure that the Principality develops into one of the world poles in financial engineering, by adding management skills to the already renowned banking skills, and by developing state of the art know-how in this domain to render the private equity pole capable of operating efficiently on all markets.

 

Working and doing business in Monaco

Since the accession of H.S.H. the Prince initiatives have been conducted with a view to promoting economic activity and making company operations more transparent while maintaining a high level of ethics including:

• Creation of the legal status of Limited Liability Company
• Introduction of the general principle of the criminal liability of people
• Adoption of systems to combat money laundering, organised crime and corruption.

There are more than 7,000* businesses in Monaco operating in a wide range of sectors including international trade, banking and finance, other services, tourism, retail, real estate and construction, shipping, and yachting among others.
(* 7,175 according to IMSEE - Monaco Key-Figures 2024")

Businesses benefit from a moderate taxation system. There is no tax on profits for businesses if more than 75% of their turnover is made in the Principality.

The population of Monaco (31.12.2023) is 38,367, with a workforce of 63,479 (with 58,326 salaried employees in the private sector) at December, 2023 - Monaco is an ideal place for you to pursue your professional life. Residents from 140 different nationalities are living together in Monaco.

Foreigners can occupy a private salaried position in Monaco providing they possess a work permit for the post they have acquired.

Approval is given for new businesses after scrutiny of the business plan, and consideration of the individuals involved in the project and the specific business areas in which the entity will operate.

High quality, human scaled regulation

Monaco is a small country. The regulation is of high quality, meeting international standards, but at the same time it is human scaled, and the authorities are approachable.
 

Executive Power  in Monaco

Executive power is retained by the highest authority, the Prince. Administrative responsibilities are the duties of the Minister of State, aided by the Government Council responsible to the Prince. Legislative and budgetary powers are exercised jointly by the Prince and by the National Council. Finally, judiciary power, independent of Government, is exercised by the courts and tribunals.
 

Regulatory Power in Monaco

The Government’s regulatory power authorizes enacting passed bills and laws and administering public services. Two distinct regulatory acts are possible:

Sovereign orders are promulgated after receiving sovereign signature and after publication in the Monaco Journal.

Ministerial decrees ratifying sovereign laws and orders are posted by the Minister and are executed following a ten day period during which the Prince can exercise his veto power.

The Ministry of Finance and the Economy is under the responsibility of the Government Minister and deals with all financial matters relating to operations carried out by the state, and overseas the budget and the activities of a large variety of services.

The Economic Development Direction is specifically responsible for examining and following up applications for new businesses, either as an individual business or as a company; and maintaining the Register of Commerce and Industry, as well as carrying out all enquiries regarding individuals and companies, within the framework of the provisions set out in law 1144 ; receiving and handling complaints from individuals and economic agents.
It develops studies and statistics enabling regular economic information to be provided, particularly in the areas of business, industry and real estate.

It monitors texts relating to economic activities and entities in the Principality, as well as ensuring the procedures are adhered to. It provides protection for inventions, distinctive marks used by companies in their activity and forms given to products by industrial property titles : patents, trademarks, designs and models.

The Commission de Contrôle des Activités Financières (CCAF), Monaco’s Financial Services Authority, encourages the development of financial activities, and promotes the development of those activities in the Principality while ensuring the security of savings and investments through various protective dispositions.

It should be noted that the new European MIF directive, in the current state of Monaco law, is not applicable except in its purely prudential aspects relating to credit establishments (not financial management companies).

The Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN) is the national central authority responsible for collecting, analysing and disseminating information related to the fight against money laundering, terrorist financing and corruption.

The Commission de Control des Informations Nominatives (CCIN) is responsible for upholding information rights and data privacy for individuals.
International Treaties

Surrounded by French territory, the Principality signed its first bilateral treaty in 1641, thereby institutionalising the links of friendship between both countries. Since then, Monaco has negotiated other bilateral treaties, particularly those concerning international extradition and judicial assistance with various countries. In addition to its fiscal convention with France, Monaco has signed double taxation treaties (DTAs) with Luxemburg, and Qatar, and is actively negotiating new treaties with other countries. A significant number of Tax Information Exchange Agreements (TIEAs) have been signed, including ones with the United States and Germany.

 

Articles and media of interest:

• Video Residence in Monaco with Rosemont International
• Video Buying a property in Monaco with Rosemont International
• Article Monaco Residence Card
• Article Monaco Business entities
• Article Monaco Multi Family Offices
• Article Fondation Mitchell