Engaging a contractor in Monaco starts with the business permit. A person without Monegasque nationality needs one from the Minister of State to trade as a sole trader or through a company, and then registers with the CAMTI health and CARTI pension schemes, which cost €1,128 and €564.84 to €2,259.36 a quarter from 1 October 2026. Residents pay no personal income tax, French nationals excepted. The legal risk is classification. This guide covers the permit, the contractor’s contributions and tax, reclassification, the contract and the payer’s paperwork. The payment side is on our Monaco payouts page. It is general information, not legal advice.
Business permit and legal forms
Permit. A person without Monegasque nationality needs a business permit issued by the Minister of State, as a sole trader or a company. The criteria are professional reputation, assessed through criminal or judicial records and an official inquiry; professional qualifications in the person’s own name; and a stable activity with an operational structure suited to its nature and size. A Monegasque national files a declaration of activity instead (monentreprise.gouv.mc, checked 2026-11-04).
Company. A SAM or SCA needs authorisation, approved articles and €150,000 of share capital (monentreprise.gouv.mc, checked 2026-11-04). A SARL registers in the Trade and Industry Register (monentreprise.gouv.mc, checked 2026-11-04). Ask for a copy of the permit and the registration before you sign.
The contractor’s contributions and tax
CAMTI and CARTI. Anyone authorised to run a business in Monaco registers with both schemes within one month of starting. From 1 October 2026, CAMTI costs €1,128 a quarter and CARTI €564.84, €1,129.68, €1,694.52 or €2,259.36 by class, with class 1 a derogatory scheme subject to conditions (Caisses Sociales de Monaco, checked 2026-11-04). That is €6,771.36 to €13,549.44 a year, by our arithmetic. Direct debit has been compulsory since 12 December 2024. You pay none of it, but a contractor quoting a net rate must cover it.
Income tax. Monaco levies no income tax on residents, except French nationals under the 1963 convention with France (monservicepublic.gouv.mc, checked 2026-11-04).
Business profits tax. Industrial or commercial activities earning 25% or more of turnover outside Monaco pay business profits tax at 25% for financial years starting on or after 1 January 2022 (monentreprise.gouv.mc, checked 2026-11-04). A contractor serving foreign clients will usually be over the threshold, so ask their accountant whether their activity is caught.
VAT. VAT applies on the same basis and at the same rate as France, 20% standard, and Monaco is a third country with respect to the EU (monentreprise.gouv.mc, checked 2026-11-04). A provider supplying reverse-charge services to clients in EU states other than France files an EC Sales List (monentreprise.gouv.mc, checked 2026-11-04).
Reclassification risk
Employment in Monaco is governed by Act no. 729 of 16 March 1963 concerning employment contracts (en.gouv.mc, checked 2026-11-04). A third-party guide describes the test as legal subordination, work under another’s authority for a determined salary, with economic dependence alone not enough (Teamed, checked 2026-11-04). We could not retrieve the Act’s text, so confirm it with Monaco counsel.
The permit criteria point the same way: the authorities expect a stable activity with its own structure, which a person working inside your hierarchy does not have. A single client, set hours and your instructions are the facts a claimant would use (contractor misclassification). If the role is a job, hire through an EOR or your own entity.
What to put in the contract
- A written services agreement scoped to deliverables, with the fee, currency, receiving account and who bears transfer charges.
- A copy of the permit and the contractor’s CAMTI and CARTI affiliation on file, and an invoice for every payment stating its VAT treatment.
- IP assignment in writing. We could not confirm from the statute how Monaco’s copyright law, Law no. 491 of 24 November 1948, treats software or the form an assignment must take, so assign the rights explicitly and ask Monaco counsel about formalities.
- Independence markers: the contractor’s own equipment and schedule, the right to work for other clients, and a fee tied to deliverables.
Taxes and paperwork
The contractor’s side. Obtain the permit, register with CAMTI and CARTI, set up direct debit, invoice with the right VAT treatment, and file any business profits tax.
The client’s side. Pay gross against the invoice. US payers collect a W-8BEN from an individual and file no 1099: pay for work done in Monaco is foreign-source income (irs.gov, checked 2026-11-04). The IRS treaty list, updated through 26 September 2025, does not include Monaco (irs.gov, checked 2026-11-04).
How to pay contractors in Monaco
A euro SEPA transfer to the contractor’s IBAN is the native rail; 14 Monaco participants adhere to the scheme and only 1 to SEPA Instant (EPC, checked 2026-11-04). Wise quoted 9.87 USD to send 1,000 USD by bank transfer (wise.com, checked 2026-11-04). Rails, costs and platforms are compared on our Monaco payouts page.
Contractor of Record in Monaco
A Contractor of Record is the contracting party for the contractor and reduces reclassification risk; it does not remove it. 4dev acts as Contractor of Record — the contracting party for each contractor — which reduces reclassification risk. Deel and Remote also sell Contractor of Record products; whether any liability moves to the provider depends on the terms of the COR agreement, so read that clause rather than the product name. Where the role is a job, with your hours, your tools and core work, hire through an EOR instead. Compare providers in our COR rating.