More than €291 million in outstanding tax contributions remained uncollected at the end of 2024, according to the 2025 Annual Public Report of the Commission Supérieure des Comptes, presented to Prince Albert II on 16th March.

The figure, which represents unpaid contributions — primarily VAT and corporate tax — was described by the Commission as remaining at an elevated level, rising slightly by 1% compared to the previous year. Corporate tax arrears alone stood at €88.2 million, also up 1%, while outstanding VAT climbed 1.3% to €180.8 million. Together, these two categories account for 93.1% of the total outstanding contributions.

Forecasting methods under scrutiny

The Commission did not attribute the arrears to any single cause, but raised questions about the methods used to forecast tax revenues. While describing Monaco’s approach as prudent and broadly reliable, it noted that predictions would benefit from greater refinement — specifically through a more rigorous assessment of how tax revenues respond to changes in key economic variables. Improving what it called the “elasticity” of revenue forecasts against macroeconomic indicators would, the Commission suggested, produce more accurate budgetary planning.

Legal transaction arrears stable

Unpaid revenues from legal transactions — covering property transfers and other civil acts — remained stable at €22.4 million, representing a smaller but still notable share of outstanding receipts in that category.

A pattern of underpayment across the real estate domain

The report also flags a separate but related issue in the state’s real estate domain. Outstanding receivables from the immovable property domain — primarily unpaid rents — have been rising for eight consecutive years and exceeded €13.5 million at the end of 2024, of which €10.9 million related to rent arrears alone.

Commission’s recommendation

The Commission does not propose specific reforms to collection mechanisms, but highlights the importance of refining revenue forecasting methods. In particular, it recommends improving the assessment of how tax revenues evolve in relation to macroeconomic variables, with a view to strengthening overall budgetary accuracy and financial oversight.

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Photo credit: Cassandra Tanti