Monaco for Entrepreneurs: Verified Facts

Is Monaco right for an entrepreneur?

Monaco is a strong fit for a narrow profile of entrepreneurs: those who already have substantial personal wealth, whose business is primarily service or advisory (wealth management, consulting, licensing of IP, family office services), and who value personal tax efficiency and a secure European base. Monaco is typically not the right environment for venture-backed startups that need a deep local talent pool, a mature tech ecosystem or public funding programmes at the scale available in larger cities.

Verified tax facts for Monaco entrepreneurs

• Personal income tax: Monaco does not levy any personal income tax on individuals. The only exception is French nationals who became Monaco residents after 13 October 1962 — they remain subject to French income tax under the 1963 tax convention.
• Corporate profit tax (Impôt sur les Bénéfices, ISB): 25% when the company earns more than 25% of its turnover outside Monaco. Companies whose activity is fully Monaco-based are in principle outside the ISB scope.
• VAT: Monaco applies French VAT. Standard rate 20%, reduced 10%, 5.5%, 2.1%. There is no 0% VAT regime.
• Social contributions: employers and employees contribute to Monaco's social security scheme (CCSS for employees, CAMTI for self-employed). Rates are set by the Monaco administration.
• Wealth tax: none.

Setting up a company

Company formation in Monaco is supervised and relatively selective. Common forms include the SARL (limited liability), the SAM (public limited, more common for larger operations) and the individual professional licence. Every incorporation requires government authorisation, a business plan, a local office and demonstrated substance. Expect a multi-month process and significant advisory costs.

Residency

Setting up a company in Monaco does not automatically grant residency. Residency is granted on the basis of housing, financial resources (typically a substantial deposit in a Monaco bank), clean criminal record and health coverage. See MonServicePublic — Settling in Monaco.

What we do not publish

We do not publish detailed comparative figures for Singapore, Dubai, London, Switzerland or other jurisdictions, because we cannot verify them against official primary sources for this page. Consult the tax authorities and professional advisors of those jurisdictions directly.

Sources

• MonEntreprise
• Direction des Services Fiscaux
• MonServicePublic