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Economy and Banking Sector of Monaco

Western Europe
Population  (2017)
37 550  (-0.02%)
EU Status
not a member
EUR (Euro)
Nominal GDP (2013)
4.9 bln EUR  (+0.09%)
Credit Ratings (as of Sep 2016)
Consolidated Banking Assets
Deposit Guarantee
100 000 EUR
Number of Banks

Monaco is a sovereign micro-state located on the French Riviera in Western Europe. It's one of the world wealthiest nations in terms of GDP per capita.

Historically Monaco have been attracting many foreigners to its casino making tourism one of the main Monaco's sources of income. Monaco has no personal income tax, which make it a popular destination for wealthy "tax refugees" from European countries. Nowadays, roughly one third of Monaco’s GDP is generated by two sectors: 1. scientific and technical activities, administrative and support services; 2. financial and insurance activities.

Monaco's banking sector traditionally specialises in private banking and private asset management services.

List of Banks in Monaco

National Currency

Euro (EUR)

Monaco uses the Euro on the basis of a formal arrangement with the European Community.


Nominal GDP (2013)Nominal GDP per Capita (2013)Real GDP Growth (2013)
4.9 bln EUR  (+0.09%)64 082 EUR  (+0.07%)9.3 %  (2012: 0.9 %)

According to Monegasque Institute for Statistics and Economic Studies, nominal GDP of Monaco in 2013 was 4.9 bln EUR.

Monaco outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.1% over the past 7 years (2006 - 2013). In 2013 real GDP growth was 9.3% which was above the Euro Area average (-0.5%) and above the European Union average (0.1%).

Real GDP Growth in Monaco. Chart 1. Real GDP Growth in Monaco. Source: Monegasque Institute for Statistics and Economic Studies.

In 2013, nominal GDP per capita in Monaco was 64 082 EUR.

Unemployment Rate

Unemployment Rate (2013)
0.0 % (unchanged)

Credit Ratings (as of Sep 2016)

Fitch Moody's
- -

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Monaco: 0.0 - 0.0%

Withholding tax rates applied on payments of interest and dividends in Monaco are shown in Table 1.

Dividends Interest
Natural person, resident 0.0 %0.0 %
Natural person, non-resident 0.0 %0.0 %
Table 1. Withholding tax rates in Monaco.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Monaco: 8 Signed Agreements

Monaco signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Mauritius (Aug 2013)
 Saint Kitts and Nevis

There are also several agreements between Monaco and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):

 Guernsey (Apr 2014)

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 21 Signed Agreements

Monaco signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Faroe Islands
 India (Apr 2013)
 San Marino
 United States

There are also several agreements between Monaco and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):

 South Africa (Sep 2013)

Automatic Exchange: Starts in September 2018

Monaco didn't sign the automatic information exchange agreement but made a commitment to start the automatic information exchange in September 2018.

Further Information


Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Monaco

Although there is no IGA between Monaco and the United States, banking and financial entities operating in Monaco have reached the agreement with the IRS to participate in FATCA on an individual basis.

Further Information

Deposit Guarantee Scheme

Maximum Protected Amount
100 000 EUR

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Monaco are summarised in Table 2.

Credit institutions operating in Monaco participate in French deposit guarantee scheme on the same terms as French credit institutions

Scheme Participantsall credit institutions operating in Monaco, branches of non-EEA banks, branches of Monaco's banks abroad
Scheme Exemptionsbranches of EEA-banks (covered by their home countries)
Eligible Depositorsnatural persons, legal entities
Covered Accountsall deposit accounts (current accounts, demand accounts, passbook accounts, term accounts, home savings accounts, home savings schemes, etc.)
Covered CurrenciesEEA currencies
Maximum Protected Amount100 000 EUR
Paid In CurrencyEUR

Table 2. Deposit guarantee scheme in Monaco.

EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.

EEA currencies are all official currencies of EEA members. Switzerland is not a EEA member, but because CHF is the official currency of Liechtenstein, CHF also belongs to EEA currencies.

So, only the deposits made with Monaco's banks in the following currencies are covered by the deposit guarantee scheme of Monaco

 BGNBulgarian lev
 CZKCzech koruna
 DKKDanish krone
 HUFHungarian forint
 ISKIcelandic króna
 CHFSwiss franc
 NOKNorwegian krone
 PLNPolish złoty
 RONRomanian new leu
 SEKSwedish krona/kronor
 GBPPound sterling

It should be also noted that deposits in non-EEA currencies (for example, USD and JPY) are not covered by the Monaco's deposit guarantee scheme.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Euro) Foreign Currency
- Aaa (prime)

Foreign currency deposit ceiling for Monaco is Aaa (prime).

Banking Sector Structure

Number of Banks
Recent Changes (2016)
new banks: 0, closed banks: 0

Currently there are 22 credit institutions operating in Monaco.

Recent structural changes (2013 - 2016) of the banking sector of Monaco are summarised in Table 3.

Number of Opened Banks1100
Number of Closed Banks2200

Table 3. Recent structural changes in the banking sector of Monaco.

The list of the most recently opened banks in Monaco is provided in Table 4.

NameStart Date
 Coutts et Co Ltd, Succursale de Monaco (new)November 2013

Table 4. The most recently opened banks in Monaco.

All the credit institutions operating in Monaco can be classified into several categories. Table 5 summarises the number of banks in each category.

CategoryNumber of Banks
Branches of foreign banks1

Table 5. Number of banks by category in Monaco.

There are 2 branches of foreign banks from 2 different countries in Monaco. Table 6 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
 United Kingdom1

Table 6. Number of branches of foreign banks in Monaco grouped by country of origin.