00:00Another myth about Monaco that is commonly believed is that it's an offshore zone like
00:04the Cayman Islands where companies don't pay any taxes at all. In reality, that's not the case.
00:10Monaco has a clear and strict corporate tax with a rate of 25%. However, it operates according to
00:17a unique territorial principle. Zero tax for local businesses. If a company operates exclusively
00:24within Monaco, it is fully exempt from corporate income tax. Except for the first two years,
00:30after establishment. This step stimulates the development of internal infrastructure
00:34from family restaurants, hotels, and premium beauty salons to local logistics firms.
00:40The 25% rule for international business and royalties. If a company is registered in Monaco,
00:46but more than 25% of its total annual turnover, that is revenue, is generated as a result of
00:53operations outside the principality, it automatically loses the right to tax benefits. Thank you.
