Monaco is a small city-state located in Southwestern Europe on the northern central coast of the Mediterranean Sea. Monaco is bordered by France. The government system is a constitutional monarchy; the chief of state is the prince, and the head of government is the minister of state. As one of the smallest independent states in the world, almost the entire country is urban. Monaco has a service-based market economyA situation in which businesses operate in a free market, i.... in which the prices of goods and services are determined in a free priceThe amount of money required to purchase something or to bri... system.
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 taxA tax paid by individuals to the government, the amount of w... and low business taxes and thrives as a taxA fee imposed by a government on personal or corporate incom... 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 taxA fee imposed by a government on personal or corporate incom..., collects stamp duties, and companies face a 33% taxA fee imposed by a government on personal or corporate incom... 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 taxA fee imposed by a government on personal or corporate incom... jurisdictions in late 2009, but continues to face international pressure to abandon its banking secrecy laws and help combat tax evasionIllegally avoidng paying tax, usually by making a false decl.... In October 2014, Monaco officially became the 84th jurisdiction participating in the OECD’s Multilateral ConventionA large formal meeting of politicians, members, delegates, s... on Mutual Administrative Assistance in TaxA fee imposed by a government on personal or corporate incom... Matters, an effort to combat offshoreRefers to accounts, investments, banks, etc., which are in c... tax avoidanceLegal ways of paying the minimum amount of tax possible by m... and evasion.
Monaco’s reliance on tourism and banking for its economic growthAn increase in a region's or nation's production of goods an... has left it vulnerable to a downturn in France and other European economies which are the principality’s main tradeThe buying and selling or exchange of goods and services. Th... 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, and tied to future euro-zone growth.
Important Details
- Country ISO3 : MCO
- Country Code : 492
- Income Group : High Income
- Lending Category : P2PPeer-to-peer is a model for computer connectivity and file-
- Region : EUROPE AND CENTRAL ASIA
- Currency Unit: Euro
- WTO Member : Yes
- TradeThe buying and selling or exchange of goods and services. Th... organisations : OECD and WTO
- world rank : NA
- Regional Ranking : NA