Freelancing in Monaco: no personal income tax (with one exception), business authorisation, and French-rate VAT
Monaco levies no personal income tax on residents — a principle in place since 1869 — so a Monégasque freelancer's profit is generally untaxed. The big exceptions: French nationals are taxed by France under the 1963 convention, activity needs a state authorisation, a 25% Business Profit Tax applies once more than 25% of turnover comes from outside Monaco, and VAT runs on the French system.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Monaco's reputation is "the place with no income tax." That is genuinely true for most residents — but for a freelancer, the honest picture has several important qualifications around who you are, where your clients are, and what still has to be registered and paid.
The 1869 no-income-tax principle — and its exception
Monaco has levied no personal income tax since an 1869 Ordinance by Prince Charles III, and there is no wealth tax, annual property tax or council tax. For a freelancer genuinely established and working in the Principality, profit is therefore not subject to Monégasque income tax. The one major exception is French nationals: under the 1963 Franco-Monégasque convention they remain liable to French income tax on worldwide income as if resident in France. So the "zero tax" headline depends heavily on your nationality.
Authorisation and social contributions
Freelancing is not licence-free. Carrying on a professional or commercial activity requires a prior authorisation from the Monaco government before you can start. And while there is no income tax, self-employed people still pay social-security contributions funding health cover, pensions and family benefits — so the running obligations look more conventional than the tax headline implies.
Business Profit Tax and VAT
The only direct tax in Monaco is the Business Profit Tax (Impôt sur les Bénéfices, ISB), charged at 25% on industrial and commercial activities that earn more than 25% of turnover from outside Monaco. A freelancer serving mainly local clients usually sits outside it; significant cross-border work can bring the activity into charge. Separately, VAT applies on the same basis and at the same rates as in France — Monaco forms a customs and VAT union with France — so if you invoice for goods or services, French VAT rules and rates apply.
General information about freelancing in Monaco, current as of the review date above, and not tax advice. Monaco's rules interact with French law and depend on nationality and activity — confirm your position with the Monaco tax and business services (gouv.mc) or a qualified adviser.
Frequently asked questions
Do freelancers in Monaco really pay no income tax?
For most residents, yes — Monaco has levied no personal income tax since Prince Charles III's 1869 Ordinance, and that covers freelance profit earned by residents genuinely established in the Principality. The critical exception is French nationals: under the 1963 Franco-Monégasque convention they remain liable to French income tax as if resident in France. And 'no income tax' does not mean 'no obligations' — social contributions, business authorisation and VAT still apply.
Is business profit ever taxed in Monaco?
Yes. The only direct tax in Monaco is the Business Profit Tax (Impôt sur les Bénéfices, ISB), levied at 25% on industrial and commercial activities that generate more than 25% of their turnover outside Monaco. A freelancer working purely with local clients typically falls outside it, but cross-border work above that threshold can bring the activity into charge.