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Can I do it in Monaco?

Posted by munchkin-191066 - Created: 14 years ago
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9 replies (Showing replies: 1 to 9)

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Posted by Zeynep-183200 - 14 years ago

No it doesn't contradict Martin's post. There is a separate company status here called "personal company" (sorry I don't remember the terminology). If you do textiles trading, for example, and your office is basically your desk, phone, and perhaps a secretary, your company is a "personal company". I am sure you will get much better and qualified legal advice on this from your appointment with the lawyers.

Re living in Monaco and setting the company elsewhere - Depending on jurisdiction, this is probably what would happen: You would set up company, say, in France. The company would pay (hefty) annual taxes to the French government. You and your partner would get the rest in dividends, and would not be paying tax from your personal income. Still, you see, your company will be paying significant taxes to the government if it is not based in a quasi-tax have like Monaco.

Regards,

Zeynep

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Posted by munchkin-191066 - 14 years ago

Hi Zeynep,

thanks for the advice, but doesn't that contradict what Martinb said ? - ie. that companies in Monaco are still liable for tax and it's just personal income tax that is exempt? In which case, I would set my office elsewhere and just rent somewhere in Monaco to live where my personal income would be declared and hence untaxed?

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Posted by Zeynep-183200 - 14 years ago

My two cents:

Your company should be tax-exempt in Monaco. I know of "personal companies" based in Monaco that have two/three partners and a secretary.

There are "joint use" apartments available in Monaco, which are cleared to be used as domicile and/or office. When renting an apartment, make sure to ask the real estate agency if it can be used as an office.

Good luck,

Zeynep

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Posted by munchkin-191066 - 14 years ago

thanks Martinb,

Following your advice, have set up a meeting with a tax lawyer next week to see where I can base myself...just need to find a cheap place to live in Monaco now (not very likely I know!). Thanks for your help.

xx

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Posted by martinb-185976 - 14 years ago

Hi Munchkin,

Good question- but from my own experience I know that in Monaco it is extremely difficult (especially when you talk about a studio) to have them accepting that you live in your 'office'. I have tried this myself (not with a studio but a 4 piece apt.) and they did not accept it.

I think you should think about a different set-up:

Normally, one has to pay taxes in the country where income is received.

Become a resident in Monaco and work for a company based in a low or none tax country.

Act as a representative for this company for France and Monaco and receive your salary in Monaco.

The above solution will not work for French nor Americans because they are taxed world wide.

Good Luck

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Posted by munchkin-191066 - 14 years ago

Sorry to rile you legend: but I'm not a wealthy recluse AT ALL... I'm simply looking into every possible way of setting up my business so that unlike so many others, it doesn't fail in teh first 2 years. I've been paying my taxes in France and UK for the past 20 years and don't resent it (too much) but surely most people would agree that if there is a legal way of avoiding paying twice (company taxes and personal taxes) then why not give it a go?

Not a one man band...there's 2 of us...can we not be joint directors????

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Posted by legend_in_my_lunchtime-182603 - 14 years ago

quote:If so, why don't all UK business people over here set up in Monaco??

Kind of a selfish outlook isn't it?

The answer to your question is clearly because not all UK businesses (or other countries for that matter) are 1-man bands that can sham all of their revenue into the tax-exempt salary of their sole director.  Some companies (thankfully many) have to deal with REAL assets like real estate, stock holders, manufacturing, product inventories, laboratories, local customers, employees and their families etc.

Maybe it is a tinge of jealousy in me (I really hope not) but I get really riled when I see the blatant tax avoidance and "I'm all right Jack" attitude that comes from wealthy tax exempt recluses in Monaco (Liechenstein, Cayman Islands, etc. not excluded).

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Posted by munchkin-191066 - 14 years ago

Thanks Martin

Does that mean then that if I rented a studio as my declared place of residence in Monaco adn ran my business from there (if the govt allows it), then I could declare as much as i wanted as my salary adn therefore my profits couldn't be taxed as they would be my "income". If so, why don't all UK business people over here set up in Monaco??

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Posted by martinb-185976 - 14 years ago

Monaco is a possibility, however, depending on the kind of business you will set up, it can take up to 6-9 months to get your permission from the government. So you will need to come up with a very detailed business plan and find a monegasque lawyer (not the cheapest) to represend you.

Next to that, rents are far more expensive in Monaco and the company tax system is the same as in France.

The only benefit you will have compared to France is that you do not pay personal income taxes. But for your company things will not be much different then in France or any other EEC country.

Good Luck.