Taxes

Monaco — Tax: Corporate Tax

Monaco operates a highly specific territorial corporate tax system targeting commercial and industrial activities. Companies of any legal structure that conduct business in Monaco are completely exempt from corporate tax, provided they generate at least 75% of their total turnover within the borders of the Principality. However, if a business generates more than 25% of its turnover outside of Monaco, or receives revenues from licensing intellectual property, patents, or trademarks, it is subject to the Business Profit Tax (Impôt sur les Bénéfices des Sociétés - IBS). The corporate tax rate is set at a flat 25% on taxable profits.

Gouvernement de Monaco - Department of Tax Services · Last verified 2026-07-17

Key Facts

  • The corporate tax rate in Monaco is a flat 25%.
  • Companies generating at least 75% of their turnover locally in Monaco are entirely exempt from corporate tax.
  • Firms generating over 25% of their turnover outside Monaco are subject to the 25% corporate tax.
  • All companies earning income from licensing intellectual property or royalties are subject to corporate tax.
  • Administrative offices or headquarters not conducting direct commerce pay a reduced levy of 2.66% of their operating expenses.
  • There is no corporate tax liability based purely on the legal form of the entity; the actual activity dictates taxability.
  • Newly established companies subject to corporate tax enjoy a full exemption for the first two years of operations.

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capital-gains
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