The infrastructure for large bandwith which is a precondition for successful e-commerce is being developed in Monaco. E-commerce is an industry of the future and the type of economic activity that Monaco encourages being high value and environmentally friendly.
However, given Monaco's tax laws, it will be important that e-commerce transactions are deemed to have been executed in Monaco, otherwise business tax will be levied. If Monaco's tax laws deem a transaction to have taken place in the jurisdiction in which the goods are delivered then normal business profit tax rates of 33.33% will apply in the principality with the consequence that it will not be an attractive location in which to locate an e-commerce retailing company.
There are already a number of Internet Service Providers in Monaco with clear interest being shown in offshore e-commerce development. The main monopolistic operator is Monaco Telecom and one of the major ISPs is Monte-Carlo Multimedia (Monte Carlo Online).
In October 2007, the Monaco Government and Monaco Telecom announced that they had come to an agreement to offer local clients, particularly companies, a wider and more attractively priced range of internet and telecommunications services.
The three year agreement was designed to enhance Monaco's competitiveness and stimulate the local economy. EUR4.5 million is to be invested by the Monaco government under the agreement.
The Monaco government also said that it would forge ahead with the implementation of new communications technologies; and in 2010 Monaco Telecom announced the intended launch of its ultra-broadband internet access, giving every household a 30 Meg connection via a VDSL modem. The fast speeds of VDSL are capable of supporting high bandwidth applications such as HD, as well as telephone services and wireless Internet access over a single connection.
See below for specific information on e-commerce in Monaco, or go to Offshore-e-com.com for an extensive analysis of the commercial possibilities and the legal background.