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Monaco: Personal Taxation

Social Security Taxes

Social insurance contributions payable by employers and employees are high. The employer's contribution is between 28%-40% (averaging 35%) of gross salary including benefits and the employee pays a further 10%-14% (averaging 13%).

An employee who is paid part of his wage by way of stock options which can be cashed in and sold at a future point in time may be required to pay social insurance on the value of the option at the time it is realized as if the option had been a salary.

Social insurance contributions, amounting to nearly 50% of salary, are a major disincentive to the hiring of staff and in many ways detract substantially from the advantageous income tax regime which exists in Monaco.

The Principality has concluded social security agreements with France and Italy for retirement and medical expense coverage.

 

 

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