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Monaco: Offshore Legal and Tax Regimes

Corporate Fees

Trusts and certain types of tax-exempt corporate entity pay fees to the Principality as follows:

Trusts: One-time registration fees are payable on formation of a trust, at the rate of 1.3%,1.5% or 1.7% of the value of the settled property depending on whether the trust has 1, 2, or 3 or more beneficiaries. The fee drops to between 0.25% and 0.45% where the property settled is Monaco real estate. Alternatively the trustees can elect to pay an annual tax of 0.2% of the value of the settled property. Lower tax rates may apply in relation to trust assets which consist of shares in Monegasque companies. An asset placed in a trust on which registration tax has been paid is not subject to inheritance or gift tax (see Personal Taxation).

Entities outside the Commercial Code, ie Branches of foreign companies, Administrative offices ('bureaux administratifs'), and Agencies ('Agences') pay a version of the Business Income Tax by applying the standard rate of 35% to a fraction of their expenses, usually 8%, although it can be up to 30%. 35% of 8% gives a tax rate of 2.8% of expenses.

 

 

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