Working in Monaco?
Monaco: Taxes, Social Security & More
Taxation in Monaco, Non-Existent?
Monaco has long been hailed as somewhat of a tax haven. And indeed, there is no tax on the Monegasque income of individuals (with the exception of French nationals working in Monaco), nor any taxes on land, capital gains, housing, wealth, television, etc.
However, this does not mean you will not encounter any taxes at all while living in Monaco. A value added tax (VAT) or taxe sur la valeur ajoutée (TVA) is issued the same way as in France, with a rate of 20% or less in case of basic products. Value added tax is also levied on real estate sales, as are various registration fees and stamp duties.
Furthermore, inheritances or transfers are taxed depending on the closeness of relation (e.g. no taxation in cases of direct filiation, 10% for uncles, aunts, nephews and nieces, and 16% for unrelated persons). Your income from savings abroad may be taxed, and entrepreneurs will face a business profit tax (impôt sur les benefices) if more than 25% of their turnover is generated outside of Monaco. Young or mostly non-commercial businesses can, however, get tax relief on the latter.
Understanding Monaco’s Social Security
Social security in Monaco is based on social funds, the so-called Caisses Sociales de Monaco (C.S.M.), which include the various compulsory social security plans for both employees and the self-employed. Established by law and managed by private entities, these funds are:
- La Caisse de Compensation des Services Sociaux (C.C.S.S.): Based on employer contributions, this fund covers various social programs, including public health insurance, as well as services, costs and allowances in cases of invalidity, maternity, and death. The C.C.S.S. only applies to employees and their dependents.
- La Caisse Autonome des Retraites (C.A.R.): Funded through contributions from both, employers and employees, this old-age pension scheme is based on a credit points system. The more contributions you make throughout your working life in Monaco, the more points you accrue and the more money you will get.
- La Caisse d’Assurance Maladie, Accident et Maternité des Travailleurs Indépendants (C.A.M.T.I.): Based on the contributions of individuals, this fund is the C.C.S.S.’s equivalent for self-employed persons in Monaco.
- La Caisse Autonome de Retraites des Travailleurs Indépendants (C.A.R.T.I.): C.A.R.’s equivalent for self-employed people, this pensions fund is also based on a points system. A self-employed person’s pension is thus directly determined by the number of points they have acquired through contributions to the fund.
From Work Hours to Paid Leave: Working Conditions
The statutory number of working hours per week is set at 39. Any time spent working that surpasses these limits counts as overtime, for which your employer has to pay you increased wages. If your employer has not been granted any special exemption, you are only allowed to clock in up to 10 hours a day. These limitations also apply if you are working for more than one employer.
Employees in Monaco are furthermore entitled to a minimum 2.5 working days of paid leave per working month. Long-time employees (20 years or more) get additional days off depending on their length of service, as do mothers (one additional day off per child under 16 years old).
Volunteering in Monaco
Due to the aging population in Monaco, a lot of volunteering work can be found in healthcare and working with the elderly. Alternatively, due to Prince Albert II’s interest in the environment, there are also a number of environmental and marine projects to take part in, such as through the Prince Albert II Foundation. This can also be a great way to enter into a career in environmental management.
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