Monaco: Offshore Legal and Tax Regimes
In Monaco, business activities which escape tax are those that service the local market to at least 75% of their turnover, in a reversal of the usual situation in offshore centres whereby it is external activities which escape tax. See Direct Corporate Taxation and Offshore Business Sectors. Pure holding companies are not permitted in Monaco, although a trading company can hold shares in its trading subsidiaries.
Trusts are for Monaco residents only, who don't pay tax; there are no particular restrictions on their holdings. Foundations are not limited to Monaco residents, and are also flexible in terms of their holdings; but they are cumbersome - see Types Of Company.