Luxembourg vs Monaco
Corporate Tax Comparison
Time of Update: Luxembourg: 4/05/2026 / Monaco: 4/05/2026
Compare Luxembourg and Monaco corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Luxembourg vs Monaco Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Luxembourg
Monaco
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
General CIT Rate:
The corporate income tax rate in Monaco is 25% for companies that derive more than 25% of their revenue from operations outside of Monaco. Companies that do not meet this criterion are generally exempt from CIT.https://gsl.org/en/taxes/monaco/
CIT Return Due Date:
December 31 of the following year.
CIT Return Due Date:
Corporate tax returns in Monaco must be filed annually. The specific due dates can vary, but typically, tax returns are required to be submitted within 3 months following the end of the financial year
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Payment Due Date:
The payment of corporate income tax in Monaco is generally due within 3 months of the end of the financial year, coinciding with the tax return filing deadline
CIT Estimated Payment Due Date:
Quarterly installment payment.
CIT Estimated Payment Due Date:
Monaco requires companies to make estimated tax payments throughout the year. These payments are usually based on the previous year's tax liability and are typically made in four installments. The exact dates for these installments are determined by the tax authorities, but they commonly fall at the end of each quarter
Withholding Tax (WHT)
Luxembourg
Monaco
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Luxembourg
Monaco
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
General Capital Gain Tax Rate:
Monaco does not levy a general capital gains tax on individuals. This means that residents do not pay taxes on capital gains from the sale of assets such as real estate or investments. However, companies subject to corporate income tax in Monaco will have their capital gains taxed as part of their overall corporate tax liability
Effective Tax Rate (ETR)
Luxembourg
Monaco
Composite Effective Average Tax Rate:
23.24%
Composite Effective Average Tax Rate:
N/A
Composite Effective Marginal Tax Rate:
18.09%
Composite Effective Marginal Tax Rate:
N/A
