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.
Monaco uses the Euro on the basis of a formal arrangement with the European Community.
|Nominal GDP (2015)||Nominal GDP per Capita (2015)||Real GDP Growth (2015)|
|5.6 bln EUR (+0.06%)||69 383 EUR (+0.05%)||5.4 % (2014: 7.2 %)|
According to Monegasque Institute for Statistics and Economic Studies, nominal GDP of Monaco in 2015 was 5.6 bln EUR.
Monaco outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.8% over the past 9 years (2006 - 2015). In 2015 real GDP growth was 5.4% which was above the Euro Area average (1.6%) and above the European Union average (1.9%).
Chart 1. Real GDP Growth in Monaco. Source: Monegasque Institute for Statistics and Economic Studies.
In 2015, nominal GDP per capita in Monaco was 69 383 EUR.
|Unemployment Rate (2015)|
|0.0 % (unchanged)|
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 applied on payments of interest and dividends in Monaco are shown in Table 1.
|Natural person, resident||0.0 %||0.0 %|
|Natural person, non-resident||0.0 %||0.0 %|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Monaco signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
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 1 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
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.
Monaco signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Monaco and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):
Monaco signed the automatic information exchange agreement on 02 November 2016 and committed to start the automatic information exchange in September 2018.
Monaco has signed bilateral agreements with 46 jurisdictions to automatically receive information:
Monaco has signed bilateral agreements with 49 jurisdictions to automatically send 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.
|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:
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 Participants||all credit institutions operating in Monaco, branches of non-EEA banks, branches of Monaco's banks abroad|
|Scheme Exemptions||branches of EEA-banks (covered by their home countries)|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||all deposit accounts (current accounts, demand accounts, passbook accounts, term accounts, home savings accounts, home savings schemes, etc.)|
|Covered Currencies||EEA currencies|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
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
|RON||Romanian new leu|
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.
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|
Foreign currency deposit ceiling for Monaco is Aaa (prime).
|Number of Banks|
|Consolidated Assets (2016)|
|44 559.29 mln EUR (-6.15%)|
|Recent Changes (2016)|
|new banks: 0, closed banks: 1|
Currently there are 19 credit institutions operating in Monaco.
In 2016 consolidated banking assets in Monaco were 44 559.29 mln EUR. The consolidated banking assets' evolution is shown at Chart 2 below.
Chart 2. Consolidated banking assets in Monaco.
Recent structural changes (2013 - 2016) of the banking sector of Monaco are summarised in Table 3.
|Number of Opened Banks||1||1||0||0|
|Number of Closed Banks||3||2||0||1|
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.
All the credit institutions operating in Monaco can be classified into several categories. Table 5 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||1|
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 Origin||Number of Branches|