Corporate tax
Impôt sur les Bénéfices des Sociétés: a 25% tax on profits applicable to companies in Monaco that generate more than 25% of their turnover outside the Principality.
Corporate tax in Monaco — formally Impôt sur les Bénéfices (ISB) — applies to companies that derive more than 25% of their turnover from outside the Principality, at a rate of 25% on profits. Businesses whose activity is exclusively local are exempt, as are newly created companies during their first two financial years (subject to conditions), with progressive relief in the following years. There is no personal income tax in Monaco for residents, with the exception of French nationals subject to the 1963 bilateral treaty. This distinctive tax regime is one of the Principality's key attractions for international entrepreneurs.