Monaco: Country and Foreign Investment
Investment Incentive Schemes
This page was last updated on 27 February 2021.
In 1991 Monaco introduced an incentive regime to encourage the creation of new businesses: companies created after 1991 whose share capital is held less than 50%, directly or indirectly, by other companies, are exempt from business income tax (currently at 26.5%) for the first two years, and are taxed at a reduced level for the following three years.
Companies based in Monaco that carry on activities that are not commercial or industrial do not pay tax on their profits. Commercial and industrial companies that generate at least 75% of their turnover within Monaco also do not pay taxes on their profits. Those whose turnover falls short of 75% must pay 26.5% business income tax.