GoNo income tax for residents
No personal income tax since 1869 (exception: French nationals).
Company formation
Company Formation in Monaco — Legal Forms, Authorisation, Taxes
In the Principality of Monaco, every commercial, industrial, craft or professional activity requires prior state authorisation (autorisation préalable, Law no. 1.144 of 26 July 1991). The company-law reform Law no. 1.573 of 8 April 2025 introduced a single-member company (SURL), a statutory 45-day authorisation deadline and digital procedures via MonGuichet.mc. Status of information: July 2026, without guarantee.
0 % profit tax for local businessSARL from €15,00045-day authorisation deadline
Key figures
Monaco at a glance
0 %
Profit tax for predominantly local business
15.000 €
Minimum capital SARL
45 days
Statutory authorisation deadline
565
Company formations 2025
Advantages
What speaks for Monaco
0 % withholding tax on dividends
No trade tax, no municipal company taxes, no withholding tax on dividends.
Reformed company law
Law no. 1.573 (2025): SURL, 45-day deadline, digital procedures via MonGuichet.mc.
Tax comparison
Example: €100,000 profit
| Germany | Monaco | |
|---|---|---|
| Profit tax | ~30 % (effective) | 0 % local / 25 % ISB if >25 % foreign revenue |
| Tax on €100,000 profit (local business) | ~€30,000 | €0 |
| Income tax for residents | up to 45 % (+ surcharge) | none (exception: French nationals) |
Monaco has no double-tax treaty with Germany or Austria (only TIEA); consider exit taxation and substance requirements.
Legal forms
Legal forms at a glance
| Legal form | Minimum capital | Shareholders | Liability | Typical use |
|---|---|---|---|---|
| SARL | €15,000 (fully paid in) | min. 2 | limited to contribution | SMEs, trade, services |
| SURL (new since 2025) | €8,000 (payable within 18 months) | 1 (natural person) | limited | Sole entrepreneurs with limited liability |
| SAM (joint-stock) | €150,000 (higher for regulated activities) | min. 2 | limited | Larger firms, banks, insurance |
| SNC | no minimum capital | min. 2 | unlimited, joint and several | Certain professions (e.g. pharmacies) |
| SCS/SCA | no minimum capital | 1 general + 1 limited partner | general partner unlimited | Limited partnership structures |
| Sole proprietorship (en nom personnel) | none | 1 | unlimited personal | Freelancers, small activities |
| Bureau administratif | — | foreign parent | parent liable | Administrative seat of international groups, no commercial activity |
SARL: the gérant must be a natural person; only for commercial activities (financial/insurance activities and liberal professions excluded); service contributions possible since Law 1.573.
SAM: articles must be notarised (Monegasque notary), authorisation by ministerial decree with publication in the Journal de Monaco; since 2025 directors no longer need to be shareholders, board meetings by video permitted.
Bureau administratif: no RCI registration, but NIS number and tax return; lump-sum profit taxation (usually based on ~8 % of annual operating expenses; clarify case by case with the Direction des Services Fiscaux).
Authorisation
The authorisation procedure (Autorisation préalable)
- Legal basis: Law no. 1.144/1991. Competent authority: Direction du Développement Économique (DDE) / Monaco Business Office, 9 rue du Gabian.
- Deadline: since Law 1.573 a maximum of 45 days from completeness of the file (SAM: extendable once by 45 days). No deadline applies to regulated activities.
- Government review criteria: 1. good repute (“honorabilité”: criminal-record certificate under 3 months from all relevant countries plus official inquiries), 2. professional qualification, 3. stable operating structure (“structure stable”: real premises, financing, viable plan).
- Required documents: application form, two originals of the draft articles, personal data sheets per shareholder, ID/birth certificate, criminal-record certificate, proof of premises; in practice additionally a 3-year business plan with financial projections, CV and proof of financing; for corporate shareholders a board resolution and details of beneficial owners.
Process
How incorporation works
Analysis and choice of legal form
Define activity, structure and legal form.
File preparation
Business plan, articles, proof of premises.
Autorisation préalable
Statutory 45-day deadline from completeness of the file.
Bank account + capital
Account with a Monaco bank, capital deposit, deposit certificate.
Registration
RCI entry (within 2 months of starting activity), publication in the Journal de Monaco, NIS number (IMSEE), tax registration.
Operational start
Manager's social security (CAMTI/CARTI), employer registration (CCSS), work permits (permis de travail).
Total time in practice ~2.5–3.5 months for simple cases after the reform; 4–6 months for SAM and regulated activities. A physical business address in Monaco is mandatory (office, shop, business centre); home office only restricted (max. 2 years, no employees). When hiring, the statutory priority of Law no. 629/1957 applies; every foreign employee needs a work permit.
Costs
Costs (indicative)
| Item | Range |
|---|---|
| Share capital SARL / SURL / SAM | €15,000 / €8,000 / €150,000 |
| RCI registration and publication | ~€75 up to several thousand € (SAM articles publication) |
| Administrative/registration fees | ~€350–1,600 |
| Notary (SAM/SCA only) | ~€3,000–5,000 or ~1 % of capital |
| Business premises | from ~€1,000/month (business centre) up to market rent |
Taxes
Corporate taxes
| Item | Tax rate |
|---|---|
| Profit tax for predominantly local business (over 75 % revenue in Monaco) | 0 % |
| ISB (Impôt sur les Bénéfices) if over 25 % revenue outside Monaco or IP income | 25 % |
| New businesses (genuinely new activity): years 1–2 | 0 % |
| Year 3 / 4 / 5 | tax on 25 % / 50 % / 75 % of profit |
| Trade tax, municipal company taxes | none |
| Withholding tax on dividends | 0 % |
| VAT (TVA, French system, common VAT area) | 20 % |
Legal basis ISB: Sovereign Ordinance no. 3.152 of 19 March 1964; rate 25 % for financial years from 1 January 2022 (previously 33.33 % until 2018, 31 % 2019, 28 % 2020, 26.5 % 2021).
Residents pay no income tax (ordinance of 1869; exception: French nationals under the France–Monaco convention of 18 May 1963).
Monaco has no double-tax treaty with Germany or Austria, only information-exchange agreements (TIEA). When leaving Germany/Austria, exit taxation (§ 6 AStG / § 27 (6) EStG) and, in Germany, the extended limited tax liability (§ 2 AStG, 10 years) must be considered; Monaco counts as a low-tax country under the AStG. Real substance (office, staff, actual management) is decisive.
Regulated activities: financial services require CCAF approval (Law no. 1.338/2007), AML supervision by the AMSF; real-estate brokerage falls under Law no. 1.252/2002; banks/insurers only as SAM with increased capital.
Residence
Residence & tax residency
Carte de Séjour: EU citizens apply directly with the Sûreté Publique (no visa), non-EU citizens first need a French type-D visa. Requirements: housing in Monaco (registered lease of at least 1 year or ownership), bank reference from a Monegasque bank (no statutory amount; market practice from ~€500,000 deposit), criminal-record certificates, personal interview from age 16. Processing ~2–5 months. Card types: temporaire (1 year, €80), ordinaire (3 years, after 3 years, €100), privilégié (10 years, after 10 years, €160). Tax residency certificate (OS no. 8.373 of 26 Nov 2020): Carte de Séjour plus one of the criteria — over 183 days/year, centre of life (“foyer”) or centre of economic activities in Monaco; fee €600, valid 1 year.
Knowledge check
Worth remembering
Tap a card to reveal the answer. Content AI-assisted and editorially reviewed.
Profit tax for local business?
Show answer
0 % (over 75 % of revenue in Monaco).
Statutory authorisation deadline?
Show answer
45 days from completeness of the file (Law no. 1.573).
Minimum capital SARL?
Show answer
€15,000, fully paid in (SURL: €8,000).
Location in numbers
Monaco in numbers
| Metric | Value |
|---|---|
| GDP 2024 | €10.28 bn (+8.8 % real; first time above €10 bn; source IMSEE) |
| Real growth since 2015 | approx. +53 % |
| Company formations 2025 | 565 (previous year: 371) |
| Private-sector employees | over 60,400 (+5.5 %) |
| Population | 38,857 (2025), 139 nationalities |
| Public debt | practically none; reserve fund ~€7 bn |
| Average property price | ~€52,000/m² (existing stock 2024/25) |
Latest developments
Latest developments (as of July 2026)
- Company-law reform Law no. 1.573 (April 2025): SURL, 45-day deadline, virtual board meetings, conciliation procedure, digitalisation via MonGuichet.mc.
- FATF/Moneyval: Monaco on the grey list since June 2024; at the June 2025 plenary the measures were rated “largely addressed” (39 of 40 recommendations met); declared goal is removal from the list by mid-2026. Compliance and KYC requirements at banks and authorities are correspondingly high.
- Mareterra urban extension (opened December 2024, 6 ha, ~130 residences): in 2025, 13 resales in the Larvotto district totalled €851.9 m; the district exceeded €70,000/m² for the first time.
- Abolition of the UK non-dom status (April 2025): according to the Henley Private Wealth Migration Report, ~16,500 wealthy individuals are leaving the UK in 2025; Monaco is among the main destinations (200+ wealthy new residents per year expected).
- MonacoTech (state incubator): new call in the verticals Climate & BlueTech, Health & SporTech and Applied AI; ~70 incubated projects in nine years, ~30 companies permanently based in Monaco.
FAQ
Frequently asked questions about Monaco
How high is the company tax?
0 % for predominantly local business; 25 % ISB if over 25 % of revenue is earned outside Monaco or from IP.
How long does authorisation take?
A maximum of 45 days from completeness of the file (since Law no. 1.573); regulated activities without deadline.
Do residents pay income tax?
No, not since 1869 (exception: French nationals).
Which legal form for solo founders?
The SURL introduced in 2025 with €8,000 capital and limited liability.
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Sources & disclaimer
Sources
- MonEntreprise (official business portal)
- Journal de Monaco — Law no. 1.573
- Legimonaco (legal texts)
- MonServicePublic — residency
- IMSEE — GDP 2024
- FATF — Monaco
This page is for general information only and does not replace legal or tax advice. Binding information is provided by the competent authorities of the respective country and by lawyers, notaries and tax advisors licensed there. For the tax consequences of relocating from Germany or Austria, tax advisors licensed in those countries are responsible. All information without guarantee. Status: July 2026. For an individual assessment: contact@goglobal.associates.
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