Monaco: Investing

FDI in Figures

Monaco does not publish national income figures and is not included in UNCTAD's 2021 World Investment Report. Tourism continues to attract the bulk of foreign investment, but the impact of the Covid-19 pandemic on it has been significant. Real estate is another attractive 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 33.33%). 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. New 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. Finally, Monaco is not ranked in the World Bank's latest Doing Business report.

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Latest Update: February 2023