Is Trading Income Taxed in Monaco?

[JSA]

Does anyone know if trading income is exempt from taxation in Monaco? Or is it similar to the UAE, where active trading is considered a “business activity,” meaning you’d have to pay corporate income tax (CIT)?

I'm just curious. I’m not planning to move to Monaco. It’s too expensive (not worth it unless you’re an HNWI) and is so tiny. On the plus side, it has a nice climate and you have the Mediterranean sea.

 

[daniels27]

It is tax free.

https://www.investopedia.com/ask/answers/060316/why-monaco-considered-tax-haven.asp
Monaco does not collect personal income tax or capital gains taxes. There are no property taxes in Monaco, but rental properties are taxed at 1% of the annual rent plus other applicable charges. Monaco eliminated taxes on dividends paid by local companies and does not charge a general corporate income tax.

 

[JSA]

It is tax free.

Interesting. From what I know, day trading is considered a professional activity in many countries and therefore not exempt from taxation. It may be a gray area in some jurisdictions.

 

[daniels27]

Interesting. From what I know, day trading is considered a professional activity in many countries and therefore not exempt from taxation. It may be a gray area in some jurisdictions.

Yes, it is a professional activity on Monaco. But there is no tax in Monaco for both individuals and companies.

 

[mytoofood]

Monaco is the only place on earth that is tax free so far and where you can die without to be taxed for the troubles to die.

 

[daniels27]

Monaco is the only place on earth that is tax free so far and where you can die without to be taxed for the troubles to die.

They are more. Hang you ever been to Henderson Island? Pitcairn is 100% tax free on all but some land tax (I think about 50 pens per square meter).

 

[JSA]

They are more. Hang you ever been to Henderson Island? Pitcairn is 100% tax free on all but some land tax (I think about 50 pens per square meter).

Breaking News: Andrew Henderson Buys Henderson Island

So apparently, Andrew Henderson has gone full circle and bought Henderson Island. Yes, the uninhabited one in the South Pacific. He’s now offering exclusive Citizenship by Investment (CBI) programs for anyone who wants to become a proud citizen of… Hendersonia!

For just $250,000 in “donations” (read: a hammock and a solar-powered Wi-Fi router), you can claim your passport and a plot of pristine, plastic-littered beach. The perks? Zero taxes, zero neighbors, and a chance to host the world’s first coconut-only crypto conference.

Rumor has it he’s also launching a Hendersonian residency program for digital nomads—Wi-Fi included, but BYO mosquito repellent. Who’s in?

 

[daniels27]

Wuhahahhaa. I always wondered it one day he will go there once when I read about it.

 

[JSA]

Wuhahahhaa. I always wondered it one day he will go there once when I read about it.

I wouldn't be surprised if he buys it and then turns it into a ''project''. Do you think he checks this forum for inspiration?

 

[daniels27]

I wouldn't be surprised if he buys it and turns into a ''project''. Do you think he checks this forum for inspiration?

It is definitely not up for sale
https://en.m.wikipedia.org/wiki/Henderson_Island_(Pitcairn_Islands)

I do not think he is often here. He has many employees and is busy with other things. Maybe we can organise an OCT Live Event
https://<<snippet>>.com/live/

@Forester are we really that afraid of him that we need to bull his domain?

 

[JSA]

It is definitely not up for sale
https://en.m.wikipedia.org/wiki/Henderson_Island_(Pitcairn_Islands)

I do not think he is often here. He has many employees and is busy with other things. Maybe we can organise an OCT Live Event
https://<<snippet>>.com/live/

@Forester are we really that afraid of him that we need to bull his domain?

Speaking of a live event, for those worried about entertainment in Hendersonia, fear not! Every Friday night, there will be a live music concert featuring none other than Andrew Henderson & The Balkanettes—the hottest (and only) band in town!

Get ready to groove to their soulful renditions of 80s and 90s pop hits. Rumor has it Andrew’s favorite encore is “Material Girl” (because, well, the irony is chef’s kiss).

Tickets? Included with your $250,000 “donation,” of course. BYO coconut maracas. Who’s excited?!

 

[RAGAV]

Does anyone know if trading income is exempt from taxation in Monaco? Or is it similar to the UAE, where active trading is considered a “business activity,” meaning you’d have to pay corporate income tax (CIT)?

I'm just curious. I’m not planning to move to Monaco. It’s too expensive (not worth it unless you’re an HNWI) and is so tiny. On the plus side, it has a nice climate and you have the Mediterranean sea.

Hey JSA, I would like to know about trading regulations in UAE. I am an Indian resident.

Is there any business license or approval that is required if I wish to move to UAE and trade in stocks, derivatives on international exchanges US and Europe using personal funds?

Can we just migrate to UAE and trade stocks and equity derivatives in personal account? Or is it required to open an LLC and trade in LLC account?

Thanks.

 

[JSA]

Hey JSA, I would like to know about trading regulations in UAE. I am an Indian resident.

Is there any business license or approval that is required if I wish to move to UAE and trade in stocks, derivatives on international exchanges US and Europe using personal funds?

Can we just migrate to UAE and trade stocks and equity derivatives in personal account? Or is it required to open an LLC and trade in LLC account?

Thanks.

I’m not sure, sorry. You should ask this in a separate thread.

 

[PhantomOf ThePits]

Hey JSA, I would like to know about trading regulations in UAE. I am an Indian resident.

Is there any business license or approval that is required if I wish to move to UAE and trade in stocks, derivatives on international exchanges US and Europe using personal funds?

Can we just migrate to UAE and trade stocks and equity derivatives in personal account? Or is it required to open an LLC and trade in LLC account?

Thanks.

Hi Ragav,
to be honest until now for personal active trading I heard several opinions:
Some say if you trade actively its a business, some others say if you trade personal accounts its free.

Didnt find any written confirmation yet of it being taxed or not taxed.


However, if you trade through an US LLC I assume then it would be taxed (the same as if you opened a prop trading company in the UAE).
Just assumptions, dont know yet for sure...

 

[RAGAV]

Hi Ragav,
to be honest until now for personal active trading I heard several opinions:
Some say if you trade actively its a business, some others say if you trade personal accounts its free.

Didnt find any written confirmation yet of it being taxed or not taxed.


However, if you trade through an US LLC I assume then it would be taxed (the same as if you opened a prop trading company in the UAE).
Just assumptions, dont know yet for sure...

Thanks for the response. I am interested in finding out the appropriate legal structure to carry out my trading activity (stocks, futures, options) in US and Europe financial markets. My activity involves very active day trading, large turnover, speculation and use of derivatives. I am using only personal funds and not providing any services to third parties.
This will most likely be considered an active income/business income.

I am open to the possibility of incorporating an LLC in UAE, US or any other suitable jurisdiction to carry out my trading activities.

How do I find the correct license and freezone to incorporate LLC In UAE Freezone?

I don't mind paying 9% corporate tax in UAE irrespective of trading in personal or LLC entity account. I want to make sure I am complying with all regulations related to license/permissions.

Had discussions with few business consultants in UAE. Some people told me that I can take a freelancer visa and trade in personal account. Some told me that I can choose any investment related license for opening an LLC but I could not find appropriate license to align with my active trading.

I also need a residence visa to migrate to the friendly jurisdiction.

Kindly provide your inputs.

Which solution is the most suitable for my requirements?