MONACO Trends and Developments Contributed by: Rémi Delforge, Vincent de Bonnafos, Ambre Bernat, Mariam Hakobian and Nicolas Paredes, DL Corporate & Regulatory
1. Introduction The Monaco M&A market is essentially a private equi - ty environment as there is no Monaco stock exchange and almost no Monaco companies are listed. In addi - tion to small and medium-sized enterprises, Monaco hosts many companies that are part of international groups and/or are specialists in their field. These com - panies can be excellent strategic investment targets in M&A transactions. For instance, in the Monaco pri - vate banking and financial services sector, a tender for sale always prompts many offers, showing wide - spread interest in acquisition transactions. According to the Monaco Institute of Statistics, the financial and insurance sector has witnessed an increase of close to 50% in the number of company set-ups in the past ten years. While general M&A activity has slowed down in recent years, the Monaco market remained stable in 2025. Our firm was active during 2025 on transactions involv - ing the tech, cruise and leisure, events and financial services sectors particularly. Transactions followed a trend that we have been observing for the past 25 years. This trend is a movement of concentration and specialisation, especially in the banking and financial services industry, where we have been advisers on most M&A transactions. M&A activity in Monaco often involves high-profile, cross-border deals of significant scale, including transactions that span multiple jurisdictions and require attentive navigation of the regulatory environ - ment of Monaco and co-ordination with other non- Monaco regulators. These international deals reflect the growing integration of Monaco-based businesses into global markets, creating opportunities for both local and international investors. 2. Monaco Regulatory Specificities Because of a limited double-tax treaty network and restrictions imposed on holding companies, Monaco may not appear to be a top-priority jurisdiction for M&A and business expansion strategies. However, the legal, political and economic stability provided by the Monegasque regulatory framework makes Monaco a highly favourable location for an acquisition or for establishing a business. The reasons for an acquisi - tion can be purely opportunistic in a specific sector.
The motives for an investment in the Principality of Monaco can result from a more global international transaction involving a group of companies including Monaco affiliates or branches as part of the group enti - ties. Certain acquisitions can also be decided upon as part of an asset protection strategy by investing in a stable economic environment such as Monaco. A new law (No 269) on trusts was passed in 2025 and offers new wealth engineering alternatives, which strengthen Monaco’s attractiveness for businesses and UBOs. 2.1 Is the Monegasque regulatory environment conducive to M&A transactions? Monaco’s market is highly regulated, particularly in sectors such as banking, insurance, gaming, tele - coms, defence and government concessions/monop - olies that have strict legal frameworks. The banking sector is governed in part by French laws concerning its organisation and supervision, as part of international treaties between the EU, France and Monaco. Furthermore, anti-money laundering (AML) laws in Monaco have become significantly stricter in recent years, as the Principality has taken strong measures to prevent financial crime and ensure trans - parency in its financial transactions. This level of regu - lation is designed to maintain the long-term stability of Monaco and its reputation as a financial centre. Similarly, the gaming industry in Monaco is highly reg - ulated, with laws governing all aspects of the sector along with a monopoly granted to a publicly owned operator. From the operation of casinos to the pro - motion and management of gaming activities, strict regulations apply. These regulations are designed not only to ensure the integrity of gaming operations but also to protect against illegal activities and maintain Monaco’s reputation as a prestigious destination for luxury tourism and entertainment. Sectors such as hospitality, entertainment (except gaming and casinos), e-sports, automotive, luxury, shipping and yachting, and tech, while subject to general business requirements and AML regulations as the case may be, benefit from a more flexible legal environment.
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