MonacoChapters
The Genoese built a fortress on the site of present day Monaco in 1215. The current ruling GRIMALDI family first seized control in 1297 but was not able to permanently secure its holding until 1419. Economic development was spurred in the late 19th century with a railroad linkup to France and the opening of a casino. Since then, the principality's mild climate, splendid scenery, and gambling facilities have made Monaco world famous as a tourist and recreation center.
Source: The CIA World Factbook - Monaco
Key indicators
- Area
- 2 km2
- Population
- 31,223 (July 2021 est.)
- Government type
- constitutional monarchy
- Languages
- French (official), English, Italian, Monegasque
- GDP
- $7.424 billion (2019 est.)
- Growth rate
- 7.5% (2019 est.)
- HDI
- N/A
- Capital
- Monaco
Macroeconomic indicators
Monaco, bordering France on the Mediterranean coast, is a popular resort, attracting tourists to its casino and pleasant climate. The principality also is a banking center and has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. The state retains monopolies in a number of sectors, including tobacco, the telephone network, and the postal service. Living standards are high, roughly comparable to those in prosperous French metropolitan areas.
The state has no income tax and low business taxes and thrives as a tax haven both for individuals who have established residence and for foreign companies that have set up businesses and offices. Monaco, however, is not a tax-free shelter; it charges nearly 20% value-added tax, collects stamp duties, and companies face a 33% tax on profits unless they can show that three-quarters of profits are generated within the principality. Monaco was formally removed from the OECD's "grey list" of uncooperative tax jurisdictions in late 2009, but continues to face international pressure to abandon its banking secrecy laws and help combat tax evasion. In October 2014, Monaco officially became the 84th jurisdiction participating in the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters, an effort to combat offshore tax avoidance and evasion.
Monaco's reliance on tourism and banking for its economic growth has left it vulnerable to downturns in France and other European economies which are the principality's main trade partners. In 2009, Monaco's GDP fell by 11.5% as the euro-zone crisis precipitated a sharp drop in tourism and retail activity and home sales. A modest recovery ensued in 2010 and intensified in 2013, with GDP growth of more than 9%, but Monaco's economic prospects remain uncertain.
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 27.07.2009 (Memorial 2010, A No.51, p.868)
- Effective as of 01.01.2011 (Memorial 2010, A No.51, p.868)
Air Services agreement
None
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact Points in Monaco
Embassy of the Grand Duchy of Luxembourg in Monaco
Ambassador with residence in Paris: Ms Martine SCHOMMER
33 Avenue Rapp
F-75007 Paris
France
Tel.: +33 1 45 55 13 37
Fax: +33 1 45 51 72 29
E-Mail: paris.amb@mae.etat.lu
Honorary Consul
Honorary Consul with jurisdiction over the Principality of Monaco:
Mr Edmond-Patrick LECOURT
4, Boulevard des Moulins
MC 98000
Monaco
Tel.: +377 93 25 30 37
E-Mail: monaco@consul-hon.lu
Source: Ministry of Foreign Affairs of Luxembourg
Economic and Commercial Attaché in charge of France and Monaco
Ms Laurence SDIKA
33 Avenue Rapp
F-75007 Paris
France
Tel.: (+33) 1 45 55 13 37
Fax: (+33) 1 45 51 72 29
E-Mail: laurence.sdika(at)mae.etat.lu / laurence.sdika@cc.lu
Country risk as defined by Office du Ducroire for Monaco
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: OfficeDuCroire - Country risk for Monaco