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Economy and Banking Sector of Monaco

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 Persons (residents) 0.0 %0.0 %
Natural Persons (non-residents) 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 1 January 2013 the date of coming into force is given in brackets):

 France
 Luxembourg
 Mauritius (Aug 2013)
 Qatar
 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 1 January 2013 of signing the agreement is given in brackets):

 Guernsey (Apr 2014)
 Mali
 Seychelles

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 1 January 2013 the date of coming into force is given in brackets):

 Andorra
 Argentina
 Australia
 Austria
 Bahamas
 Denmark
 Faroe Islands
 Finland
 Germany
 Greenland
 Iceland
 India (Apr 2013)
 Liechtenstein
 Netherlands
 Norway
 Samoa
 San Marino
 Sweden
 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 1 January 2013 of signing the agreement is given in brackets):

 Belgium
 South Africa (Sep 2013)

Automatic Exchange: Starts in September 2018

Monaco signed the automatic information exchange agreement on 02 November 2016 and committed to start the automatic information exchange in September 2018.

Automatic Excnange: 46 Bilateral Agreements to Receive Information

Monaco has signed bilateral agreements with 46 jurisdictions to automatically receive information:

 Argentina
 Australia
 Austria
 Belgium
 Bonaire, Saint Eustatius and Saba
 Bulgaria
 Canada
 Colombia
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Guernsey
 Hungary
 Iceland
 India
 Ireland
 Italy
 Japan
 Jersey
 Latvia
 Liechtenstein
 Lithuania
 Luxembourg
 Malta
 Mauritius
 Mexico
 Netherlands
 Norway
 Poland
 Portugal
 Romania
 San Marino
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 United Kingdom

Automatic Excnange: 49 Bilateral Agreements to Send Information

Monaco has signed bilateral agreements with 49 jurisdictions to automatically send information:

 Argentina
 Australia
 Austria
 Belgium
 Bermuda
 Bonaire, Saint Eustatius and Saba
 British Virgin Islands
 Bulgaria
 Canada
 Cayman Islands
 Colombia
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Guernsey
 Hungary
 Iceland
 India
 Ireland
 Italy
 Japan
 Jersey
 Latvia
 Liechtenstein
 Lithuania
 Luxembourg
 Malta
 Mauritius
 Mexico
 Netherlands
 Norway
 Poland
 Portugal
 Romania
 San Marino
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 United Kingdom

Further Information

FATCA

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
No IGA

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