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Trading perpetual futures in the principality of monaco
The finding
Traders in the Principality of Monaco face 0% personal capital gains tax, shifting holding friction entirely to venue funding rates like Bybit's +0.0086% on BTC or OKX's -0.0005%.
For long positions held over multiple weeks, funding rate spreads between exchanges exceed base execution fees.
OKX offers negative long funding rates on BTC (-0.0005%) and ETH (-0.0032%), paying longs to maintain exposure.
Establishing residency in the principality of monaco removes local personal capital gains tax on perpetual futures trading. Because local direct taxes on capital gains are zero for non-French individuals in the principality of monaco, holding costs for derivatives positions depend strictly on venue execution fees and 8-hour funding settlements.
Tax residency and perpetual futures in the principality of monaco
Monaco levies zero personal income tax and zero capital gains tax on individual residents, except for French nationals subject to the 1962 bilateral tax convention. Because municipal and national tax drag is zero, a trader's net balance change depends on exchange fee schedules and recurring funding payments.
Offshore exchanges charge distinct baseline execution rates. MEXC charges 0.0% maker fees and 0.0002 futures taker fees. Bitget charges 0.0002 maker fees and 0.0003 taker fees. OKX sets futures maker fees at 0.0002 and taker fees at 0.0005. Bybit maintains a 0.0002 maker fee and a 0.00055 taker fee.
Entering and exiting a $100,000 perpetual position using taker orders costs $40 in total execution fees on MEXC. That same round trip costs $60 on Bitget, $100 on OKX, and $110 on Bybit.
Worth knowing
French nationals taking up residence in Monaco remain subject to French personal income tax rules under the bilateral treaty, preserving capital gains liabilities on crypto trades.
Comparing funding rate costs across offshore exchanges
Funding payments occur every 8 hours and compound over multi-week holding periods. Across active trading pairs, funding spreads vary widely across venues.
In BTC perpetual futures, total 24-hour volume stands at $7,821,275,924. OKX posts a long funding rate of -0.0005% per 8 hours, whereas Bybit charges +0.0086%. This creates a spread of 0.0091 percentage points per 8 hours. MEXC sits at +0.0007% and Bitget charges +0.0028%.
In ETH perpetual futures, volume reaches $7,468,709,982 over 24 hours. OKX offers the lowest holding cost for long positions at -0.0032% per 8 hours. Bitget pays longs -0.0007%. MEXC charges +0.0036% and Bybit charges +0.0037%, resulting in a spread of 0.0069 percentage points.
| Asset | Venue | 8h Funding Rate | Futures Taker Fee | Futures Maker Fee |
|---|---|---|---|---|
| BTC | OKX | -0.0005% | 0.0005 | 0.0002 |
| BTC | Bybit | +0.0086% | 0.00055 | 0.0002 |
| ETH | OKX | -0.0032% | 0.0005 | 0.0002 |
| ETH | Bybit | +0.0037% | 0.00055 | 0.0002 |
| SOL | Bitget | -0.0124% | 0.0003 | 0.0002 |
| SOL | Bybit | +0.0054% | 0.00055 | 0.0002 |
| SNDK | Bybit | +0.0000% | 0.00055 | 0.0002 |
| SNDK | Bitget | +0.0298% | 0.0003 | 0.0002 |
Worked arithmetic for long position friction
Holding a $500,000 long position in SOL for 30 days requires settling 90 funding intervals. SOL 24-hour trading volume is $1,198,637,970 across exchanges.
On Bybit, the SOL 8-hour funding rate is +0.0054%. Each 8-hour interval costs $27 ($500,000 multiplied by 0.000054). Over 90 intervals, total funding paid equals $2,430. Adding Bybit round-trip taker fees of 0.0011 ($550) brings total position friction to $2,980.
On Bitget, the SOL 8-hour funding rate is -0.0124%. Each interval pays the long trader $62 ($500,000 multiplied by 0.000124). Over 90 intervals, the account receives $5,580 in funding payments. Subtracting Bitget round-trip taker fees of 0.0006 ($300) leaves a net positive balance adjustment of $5,280.
The total cost divergence between Bybit and Bitget over 30 days on a $500,000 SOL position is $8,260 ($2,980 paid versus $5,280 received).
Where this goes wrong
Long positions held on venues with high positive funding rates erode principal balance during sideways price trends, offsetting zero-tax advantages within months.
Liquidity distribution and venue selection
Selecting an exchange requires balancing funding rates against order book depth and 24-hour trading volume. High daily volume reduces slippage on larger order sizes.
ZEC perpetual futures record $1,471,738,057 in 24-hour volume. Bitget charges longs -0.0072% per 8 hours. Bybit, MEXC, and OKX all stand at +0.0100%. The spread is 0.0172 percentage points per 8 hours. On a $100,000 long held for 30 days, OKX costs $900 in funding fees, while Bitget pays $648 to the holder.
SNDK perpetual futures post $909,073,798 in 24-hour volume. Bybit offers 0.0000% funding per 8 hours, OKX charges +0.0110%, and Bitget charges +0.0298%. The 0.0298 percentage point spread makes Bybit the lowest-cost venue for long SNDK positions.
XRP perpetual futures show $797,950,381 in 24-hour volume. OKX charges +0.0019% per 8 hours, MEXC charges +0.0023%, Bybit charges +0.0025%, and Bitget charges +0.0100%. OKX represents the lowest long holding cost across the four venues.
What to do instead
Check current 8-hour funding rates before opening multi-week positions, as rate spreads frequently exceed total entry and exit execution fees.
Does Monaco levy tax on perpetual futures gains?
Monaco imposes 0% personal income tax and 0% capital gains tax on individual residents. This tax exemption applies to foreign nationals living in Monaco, with an exception for French citizens under a bilateral agreement.
Which exchange is cheapest for holding long BTC perps?
OKX is currently the cheapest venue for holding long BTC perps with an 8-hour rate of -0.0005%. Bybit is the most expensive among listed venues at +0.0086% per 8 hours.
How much does 8-hour funding cost on a long SOL position on Bybit?
Bybit charges +0.0054% per 8-hour interval on SOL long perps. On a $500,000 position, this rate equals $27 per interval, or $81 per day.
How do MEXC taker fees compare to Bybit taker fees?
MEXC charges a futures taker fee of 0.0002, while Bybit charges 0.00055. A $100,000 trade round trip costs $40 on MEXC compared to $110 on Bybit.