Both parts signed lately an agreement with the aim to a better transparency.
This agreement had already been signed previously with Switzerland, Liechtenstein, San Marino and Andorra to join the international effort to a better transparency and will contribute to clamp down on tax evasion accross Europe.
The Council approved the conclusion of an agreement with Monaco that will improve tax compliance by private savers. The agreement will require EU member states and Monaco to exchange information automatically as a mean of helping to prevent tax evasion. It will give their tax administrations improved cross-border access to informations on the financial accounts of each other’s residents. The agreement also complies with the automatic exchange of financial account information promoted by a 2014 OECD global standard. The new agreement upgrades a 2004 agreement that obliged Monaco to apply measures equivalent to those in an EU directive on the taxation of savings income. The new agreement was signed on 12 July 2016, and refer to an EU’s taxation savings directive 2003/48/EC and with the directive 2014/107/EU. Information to be exchanged concerns not only income such as interest and dividends, but also account balances and proceeds from the sale of financial assets.
The final agreement was concluded on October 11th at a meeting of the Economic and Financial Affairs Council, without any discussion. The EU and Monaco must now ratify or approve the agreement in time to enable its entry into force. The parties will strive to enable entry into force on 1 January 2017.