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    Home » Monaco is a tax haven for F1 drivers but strange rule means some LOSE out
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    Monaco is a tax haven for F1 drivers but strange rule means some LOSE out

    morshediBy morshediMay 21, 2025No Comments4 Mins Read
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    Monaco is a tax haven for F1 drivers but strange rule means some LOSE out
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    System 1 heads to Monaco this weekend because the European triple-header continues
    following a showstopping race in Imola final trip.

    Reigning champion Max Verstappen returned to the top of the results table in Italy, securing his first win for the reason that Japanese GP on Purple Bull’s four-hundredth F1 race weekend.

    F1 HEADLINES: Lewis Hamilton fearing F1 future as champion MISSING from Ferrari announcement

    The Dutchman, like over half of the 2025 grid, resides in Monaco when he isn’t busy travelling everywhere in the globe to fulfill the calls for of the game’s 24-race calendar, and can return to the familiar environment this weekend to race within the principality.

    Final yr, house hero Charles Leclerc finally broke the so-called ‘Monaco curse’ which may have been hampering his possibilities of attaining his childhood dream of winning the iconic motorsport event on the very streets he grew up on.

    After a disappointing begin to Ferrari’s 2025 marketing campaign nonetheless, the Monegasque driver might want to pull out all of the stops on Saturday to achieve the important pole place which frequently results in a victory across the unforgiving Monte Carlo track.

    Forward of this weekend’s 2025 Monaco GP, GPFans revisits the variety of stars who may doubtlessly contemplate this a ‘house race’, and the one weird rule which prevents some from shifting to the motorsport hub.

    Why do not all F1 drivers dwell in Monaco?

    Ferrari star Leclerc holds a Monegasque passport that means he doesn’t want to fret about assembly the necessities that many F1 drivers do when contemplating the transfer which requires them to conduct their private life and financial exercise in Monaco.

    From this yr’s grid, 12 drivers reside in Monaco, together with McLaren star Lando Norris and his former team-mate Carlos Sainz, who had been pictured meeting up earlier this week for a soothing dinner date forward of the 2025 race weekend.

    A lot of the grid are sometimes noticed socialising, coaching and driving their spectacular supercars across the streets of Monaco, with the principality proving an attractive destination for motorsport stars, largely due to the advantages of the nation’s tax system.

    Monaco residents aren’t topic to non-public earnings tax so the 12 stars of the grid who name the luxurious location house aren’t required to pay tax on their wage or fruitful sponsorships.

    As the very best earner on the grid, one star who enjoys these advantages is four-time champion Verstappen, who moved to Monaco from the Netherlands simply in the future after his 18th birthday.

    Seven-time champion Lewis Hamilton tops the F1 driver wealthy record out of these on the present grid, just lately coming in 324th on the Sunday Occasions Wealthy Checklist which names the highest 1000 earners who reside within the UK.

    The Ferrari star by no means stays in a single place for too lengthy due to the hectic schedule of the game and in addition to London, additionally owns properties in Colorado, LA, New York and naturally, Monaco.

    So if Monaco is catered to a luxurious life-style why do not all F1 drivers reside there? After all, the vacation spot of every star’s house is totally a private choice- some could select to stay near house corresponding to newly promoted Alpine driver Franco Colapinto. Alternatively, some could want to reside inside an affordable distance of their group’s HQ corresponding to RB star Isack Hadjar.

    The 20-year-old races beneath the French flag however holds twin French and Algerian citizenship and reportedly splits his time without work between Paris and the Italian metropolis of Faenza.

    The opposite two French drivers on the grid are Esteban Ocon and Pierre Gasly who grew up in Normandy only a 20-minute drive away from one another.

    As the previous team-mates each maintain French passports they’d not profit from the tax financial savings many different drivers do and though this does not stop them from residing in Monaco, they’ve each chosen to spend their time away from the observe exterior of the principality.

    They may each dwell in Monaco but when they selected to, neither may declare tax-free standing on account of a bilateral treaty between Monaco and the French authorities which suggests French residents stay taxable on their earnings even when they’ve moved to Monaco.

    READ MORE: F1 Imola Grand Prix 2025 results: Final classification with penalties applied

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