Monaco is a jurisdiction with all the necessary qualities to constitute an offshore company. Being on the southern coast of France and close to Italy, this town overlooking the Mediterranean receives more than 300,000 tourists a year. 

It is important to mention that any company registered in this jurisdiction will be considered as "national", the current legislation details that an offshore or non-resident company in the country cannot be established.

Therefore, an offshore company in Monaco will not be officially considered as such. In the tax field, Monaco offers great benefits when consolidating a company because the taxation of corporate entities depends on the source of income of the company.

If the income from sales made with residents of Monaco exceeds 75% of the total, you are legally exempt from paying taxes. On the other hand, if more than 25% of the income is generated outside the jurisdiction, the income tax is fixed at a standard rate of 33.3%.

In the case of companies that are subject to the payment of corporate income tax, they benefit from an exemption from payment for two years from the date of their formation in Monaco. 

The payment of value added tax is fixed at the same rate as that of France, 20% and all companies incorporated in Monaco have the duty to register for VAT purposes.

Withholding dividend taxes or capital gains taxes does not apply in this jurisdiction. Now if we talk about a holding company that has more than 20% of the shares of a non-resident company, you will have to pay corporation tax on dividends.

Wealth tax

The wealth tax or also known as IP, is a direct, general and personal tax that consists of taxing the possession or ownership of the estate on its net worth. This tax is completely exempt in Monaco, but in nearby countries such as France and Spain it is applied.

The legal system in Monaco with "offshore" companies is very strict, registered entities must be governed only to the activities they declared in the incorporation forms. 

The profile of a company in this jurisdiction is available only on the website of the Commercial Registrar of Monaco, including the names of the directors and shareholders.

Among the main services of Foster Swiss is the advice for international tax planning in a private and confidential way, main adjectives that are taken into account when setting up offshore companies or opening offshore accounts.
 
If you wish to register an entity in Monaco, Foster Swiss can advise you. We help you in practically everything, we provide you with personalized advice from the moment you choose a corporate structure for your company, until even one year after you have incorporated your company and we take care of the whole process for you.

For more information on this topic or any requirement related to our services, you can contact us directly through info@fosterswiss.com