flag Monaco Monaco: Investing

FDI in Figures

Monaco does not publish national income figures and is not included in UNCTAD's 2022 World Investment Report. Tourism continues to attract the bulk of foreign investment, but the impact of the Covid-19 pandemic on the sector has been significant. Real estate is another attractive sector (non-residents are estimated to account for more than half of real estate investments). Furthermore, Monaco is a renowned financial centre and has attracted many foreign banks and financial institutions over the years. In 2019, the country announced the establishment of a new Fintech hub, MonacoTech, aimed at supporting the growth of innovative startups in the financial technology sector. The main investor in the country is France.

Monaco has created a stimulating environment for foreign investors, as shown by the simplified procedures for setting up businesses in the area and the extremely low tax rates that have helped make Monaco a tax haven (only companies earning over 25% of their turnover outside the Principality are subject to a tax on profits of 25%). Moreover, Monaco has developed an efficient and supportive business environment with streamlined procedures for business setup, a highly skilled and multilingual workforce, and excellent infrastructure. The country's strategic location and strong ties to neighbouring countries also make it an attractive destination for foreign investors looking to access the European market. Monegasques and foreigners living and working in Monaco are not subject to income tax, with the exception of French citizens. Companies can benefit from various tax incentives. There are no restrictions preventing foreigners and non-residents from buying property or opening bank or brokerage accounts in Monaco. Non-residents account for more than half of all property investments. Prior approval from the Department of Economic Expansion is required before conducting any economic activity in the principality, which is well known for its security and political stability. In 2013, the Principality began to implement measures to increase tax transparency and in 2016 the EU and Monaco signed an agreement to improve the fight against tax fraud. The country introduced new measures to fight money laundering in 2018 that are in line with EU directives, with the creation of a new register of beneficial owners of companies and a register of beneficial owners of trusts. Such measures also included the creation of an internal anonymous whistle-blower system. The Principality of Monaco has not signed any bilateral fiscal agreement, except the one with France. Albeit is not a member of the European Union, the customs union with France makes Monaco subject to EU customs laws. Finally, Monaco is not ranked in the 2023 Index of Economic Freedom nor in the 2022 Corruption Perception Index.


Country Comparison For the Protection of Investors

  Monaco United States Germany
Foreign Direct Investment 202020212022
Number of Greenfield Investments*
Value of Greenfield Investments (million USD) 323051

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.


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Tax Rates

Value Added Tax (VAT) - Taxe sur la Valeur Ajoutée (Local name)
20% (standard rate). A reduced rate of 10% applies to certain products (pharmaceutical products, water, restaurants, take-away food, hotels, transportation of passengers, certain types of real estate renovations).
Other reduced rates are 5.5% (products and services for the disabled, books (including e-books), most food and drink products, energy) and 2.1% (certain medicines and newspapers).
Exports and related services are zero-rated.
Company Tax
  • 26,55% for fiscal year beginning as from January 1st, 2021
  • 25% for fiscal years beginning as from January 1st, 2022
Withholding Taxes
Dividends: 0%, Interests: 0%, Royalties: 0%.
Social Security Contributions Paid By Employers
Pension Fund for Employees (CAR): 8.07%
Health Insurance for Employees (CCSS): 15.15%
Unemployment Benefit Insurance (ASSEDIC): 4.05%
Supplementary Pension Fund (AMRR): 5.85%
Other Domestic Resources
Department of Tax Services
Ministry of Finance and Economy

Individual Taxes

No Income tax (except for French nationals that are covered under a fiscal treaty between Monaco and France) 0%

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Investment Opportunities

Tenders, Projects and Public Procurement
Asian Developement Bank, Proposed Projects in Asia
DgMarket, Tenders Worldwide
Useful Resources
Economic Development chamber of Monaco (CDE)
Contact the Embassy of Monaco in the United Kingdom.

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Latest Update: November 2023

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