In an interesting development in July 2022 Law 1529 was published providing well needed clarification of the taxation of transactions in Monaco relating to foreign trusts.
The intention of the first Article of the Law is to confirm that the addition of Monaco situs assets into a trust (either inter vivos, or on death) will be taxable in Monaco. The applicable rates of tax will depend on the relationship between the settlor and the beneficiaries of the trust. The identity of the beneficiary and the parental link is to be established based on official documents.
This now provides more certainty for individuals wishing to use Trusts for estate planning where Monaco assets are involved, and reinforces Monaco’s attractively for foreigners who are used to availing themselves of the vehicles. The use of the Monaco Law 214 Trust still remains an interesting planning tool for Monaco residents who originate from countries which national law enables the creation of trusts.
For further information on this subject please contact the Rosemont Monaco office: office@rosemont-mc.com