In 2006, Fernando Alonso opted to have a permanent home in Switzerland as opposed to most F1 drivers, who chose to lead a luxurious lifestyle in Monaco. With Spotrac reporting that the 42-year-old earns $5,000,000 a year with Aston Martin, the Spaniard could end up having to pay $575,000 in taxes since he moved to the country 17 years ago, as learned by Kym Illman’s YouTube video.
Owing to low tax rates, several favorable tax treaties, strong privacy regulations, and an active wealth management system, Switzerland often ranks at the top of the list of tax havens. As such, many millionaires, including various F1 drivers, chose to reside in the country. Given that Alonso now earns the lowest salary he has ever earned in F1, by moving to Switzerland, the Asturian driver could pay a measly amount as tax.
Fernando Alonso to pay his lowest tax in 17 years
In his latest video, Kym Illman talked about where the current lineup of F1 drivers live. Talking about Alonso, Illman said that the Spaniard lives in Switzerland, which means he has a distinct tax advantage as opposed to living in his home country.
Illman further explained that Alonso will be in for some massive savings because of the tax slabs in the country. According to the list he showed in the video, people earning over $876,000 in the country have to pay a tax of 11.5%, which in the case of Alonso amounts close to $575,000.
Having accumulated a massive net worth over the years, paying such an amount would be the least of Alonso’s worries. Especially given the fact that he briefly moved back to his home country.
Alonso went back to Spain to be with his family
In 2011, mirror.co.uk reported Alonso had moved back to Oviedo in Spain to spend more time with his family. The move was said to cost him a third of his then salary with Ferrari. However, money was not Alonso’s priority, as he only wanted to be with his family. The Spaniard admitted the move back to Spain did not make him poor it only made him less rich.
Move back to Spain costs Alonso £50m: Fernando Alonso has revealed that he is no longer a resident of tax-free Switzerland, having el…
— Aleksandr Babko (@Aleksandr_Babko) May 23, 2011
Since moving to Spain, Alonso has had multiple home bases. The 42-year-old has two homes in Switzerland and another one in Oxford. The two-time world champion also has a residence in Lugano, near Italy’s border, and a luxury apartment in a 52-storey building in Dubai.
