Has separate legal personality from the people who form the foundation; founder, council, beneficiaries etc. Foundation can be perpetual or have a limited duration. Foundations may be formed for any purpose as long as it is not contrary to legal norms and within the best interest of society. May be established by Will. Foundations are generally created through a Will, but if established inter vivos are required to be established by notarial deed. Forced heirship rule applies and thus cannot be used by foreign nationals to avoid this law. Persons administering the foundation must have resided in Monaco for a minimum of one year or be a citizen of Monaco.

Monaco Foundation Key Features

  1. Has separate legal personality from the people who form the foundation; founder, council, beneficiaries etc.
  2. Foundation can be perpetual or have a limited duration
  3. Foundations may be formed for any purpose as long as it is not contrary to legal norms and within the best interest of society
  4. May be established by Will
  5. Foundations are generally created through a Will, but if established inter vivos are required to be established by notarial deed
  6. Forced heirship rule applies and thus cannot be used by foreign nationals to avoid this law
  7. Persons administering the foundation must have resided in Monaco for a minimum of one year or be a citizen of Monaco

Monaco Foundation Legal Requirements

Monaco Foundation

Corporate Details

General

  • Registered Agent and Office

Yes

  • Type of Entity

Foundation

  • Duration

 To perpetuity

  • Forced Heirship

Yes

  • Beneficial Owner

Yes

Founder

  • Minimum No Founders

2

  • Nominee

Yes

  • Qualification 1

Beneficiary but not a sole Beneficiary

Foundation Council

  • Minimum No of Councillors

1

  • Qualifications 1

Founder may be a Councillor but not the sole Councillor

Secretary

  • Local Requirements

Yes

Accounts

  • Requirements to Prepare

No

  • Requirements to file accounts

No

  • Publicly accessible accounts

No

Monaco Foundation Tax Treatment

There is no specific tax applicable to trusts in the Principality (with two exceptions, see below), as there are no direct taxes in the Principality.

1.3% if one beneficiary;

1.5% if two beneficiaries; and

1.7% if three or more beneficiaries.

Monaco Foundation Duration for Set up

Around 3 Weeks

Distinctive Benefits of the Monaco Foundation

  • No audited of account sis required
  • No requirements to file accounts or annual accounts to the Government
  • No tax information exchange agreements
  • Meetings are not required
  • No exchange controls
  • Stable economic and political jurisdiction
  • Highly reputable offshore market
  • Many different types of shares are allowed to be issued
  • Low taxes on beneficiaries

The Valsen Advantage

  1. End to end comprehensive service
  2. Speedy and efficient service
  3. Expert advice on structuring options
  4. Dedicated ongoing compliance support
  5. Extensive network pool of service providers