Valsen Corporate

Monaco Offshore Trust

The concept of a trust in Monaco can be best understood in terms of its historical development. As a civil law jurisdiction the Principality enforced its internal laws governing strict heirship rules on any dispositions made by Monegasque residents. Consequently some British and United States nationals residing in Monaco appealed to the Government to be allowed to use the vehicle of a trust so as to be able to have the same flexibility to dispose of their assets on death as existed under the laws of common law jurisdictions of which they were nationals.
Law 214 was passed with a view to allowing foreigners resident in Monaco to set up trusts governed by their own national law. The law was not passed to create a body of Monegasque trust law or introduce the concept of a trust into Monaco. Where a dispute arises the Monaco courts may exercise jurisdiction: unless Monegasque law makes express provision for a legal issue to be governed by its internal law (e.g. appointment of trustees) the courts of Monaco will apply the principles of the foreign proper law governing the trust.
Monaco Offshore Trust Key Features

  1. The settlor of such a trust must be a resident of Monaco;
  2. The trust deed must be registered with the result that information relating to the beneficiaries, settlors and property settled under the trust is publicly available;
  3. Registration fees are payable according to the number of beneficiaries;
  4. Foreign judgments (including judgments relating to forced heirship and foreign inheritance laws) are recognized and there are no specific asset protection laws in place which protect a trust from challenge by creditors other than the protection offered by general insolvency law;
  5. All trust powers must be either stated in the deed or implied by the foreign proper law governing the trust since there is no statutory schedule of trust powers in Monaco;

Monaco Offshore Trust Legal Requirements

Monaco Trust

Corporate Details
  • Type of Entity

Trust
  • Registered Office in Monaco

Yes

Share capital or equivalent
  • Standard currency

USD
  • Permitted currencies

Any
  • Minimum paid up

None

Trustee
  • Minimum number

One
  • Corporate directorship allowed

Yes

Settlor

  • Resident Settlor

Yes
  • Corporate shareholder allowed

NA

Accounts
  • Requirements to prepare

Yes
  • Audit requirements

No
  • Requirements to file accounts

No

 Monaco Offshore Trust Tax Treatment
Monaco tax regulations are highly favorable to individuals. Except for French citizens, who must pay income tax on income from France, individuals are not subject to any income tax.
Corporate tax regulations are also advantageous, particularly for business conducted locally. In the latter case, companies are not subject to any tax on profits. Additionally, they can engage in international activities and remain exempt from taxes if these activities generate less than 25% of the company’s total revenue.
Monaco Offshore Trust Duration for Set Up
2 Weeks
Distinctive Benefits of the Monaco Trust

  • Monaco tax regulations are highly favorable to individuals
  • Individuals are not subject to any income tax
  • Corporate tax regulations are also advantageous
  • Companies are not subject to any tax on profits

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