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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:

FR France
LU Luxembourg
MU Mauritius
QA Qatar
KN Saint Kitts and Nevis

There are also several agreements between Monaco and other jurisdictions which were signed but haven't yet come into force:

GG Guernsey
ML Mali
SC 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 :

AD Andorra
AR Argentina
AU Australia
AT Austria
BS Bahamas
DK Denmark
FO Faroe Islands
FI Finland
DE Germany
GL Greenland
IS Iceland
IN India
LI Liechtenstein
NL Netherlands
NO Norway
WS Samoa
SM San Marino
SE Sweden
US United States

There are also several agreements between Monaco and other jurisdictions which was signed but haven't yet come into force:

BE Belgium
ZA South Africa

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:

AR Argentina
AU Australia
AT Austria
BE Belgium
BQ Bonaire, Saint Eustatius and Saba
BG Bulgaria
CA Canada
CO Colombia
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GG Guernsey
HU Hungary
IS Iceland
IN India
IE Ireland
IT Italy
JP Japan
JE Jersey
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MT Malta
MU Mauritius
MX Mexico
NL Netherlands
NO Norway
PL Poland
PT Portugal
RO Romania
SM San Marino
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
GB United Kingdom

Automatic Excnange: 49 Bilateral Agreements to Send Information

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

AR Argentina
AU Australia
AT Austria
BE Belgium
BM Bermuda
BQ Bonaire, Saint Eustatius and Saba
VG British Virgin Islands
BG Bulgaria
CA Canada
KY Cayman Islands
CO Colombia
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GG Guernsey
HU Hungary
IS Iceland
IN India
IE Ireland
IT Italy
JP Japan
JE Jersey
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MT Malta
MU Mauritius
MX Mexico
NL Netherlands
NO Norway
PL Poland
PT Portugal
RO Romania
SM San Marino
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
GB 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