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Monaco: Personal Taxation

Value Added Tax

For the purposes of VAT Monaco is part of the European Union. The Principality adopts the French system for collection. French customs operate the levying of VAT which relates to non European Union transactions whereas the Monegasque authorities operating the levying of VAT on all other transactions.

Two rates of VAT apply: the normal rate of 19.6% (which is the standard rate in France) and a reduced rate of 7%, which applies to water, food products, medicines, books, special equipment for handicapped people, hotel accommodation, public transport services and public entertainment services.

The standard rate of VAT is payable on sales of real estate whose construction was completed less than 5 years ago and which have never been transferred for value. Real estate which has been constructed more than 5 years ago and which has already had one purchaser who paid market value does not attract VAT.

 

 

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