Monaco, being a tax haven, has attracted several athletes, especially F1 drivers, to permanently shift base there. Besides being a central point in Europe to travel to most of the races on the continent coupled with its luxury lifestyle, F1 drivers can save millions of dollars in tax payments by living in Monaco instead of their home country.
However, Pierre Gasly is one of the few drivers who doesn’t reside in the Principality. The Alpine driver instead lives in Milan, Italy, and there is a reason he can’t enjoy the benefits of staying in Monaco.
Being a French citizen, Gasly cannot enjoy the tax benefits by shifting to the Principality. The French government doesn’t allow any of its citizens to avoid paying taxes, as it has a special agreement with Monaco. F1 photojournalist Kym Illman further elaborated on this in a recent Instagram video.
“Unlike almost every other country, France has a special agreement with Monaco: if you’re a French citizen, even if you live in Monaco, you still owe taxes to France”. And in such a case, Gasly may not be able to afford to live in Monaco despite his decent multi-million dollar salary.
With income taxes being high in France, the Alpine driver will have to shell out a considerable amount of his earnings to the French government. And with the remaining income, he may struggle to bear the high expenditure of living in Monaco.
Given its ultra-premium real estate along the French Riviera in the pristine Mediterranean climate, the costs of residing in Monaco are quite high. And with Gasly’s $10 million salary from F1, which will incur taxes in France, it won’t make financial sense for him.
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While drivers like Lewis Hamilton and Max Verstappen earn north of $60 million per year in salaries, excluding bonuses, Gasly is yet to reach such a status in F1. On top of that, he will also have to pay at least a considerable amount of money—around at least $548k—to be eligible to live in Monaco as a wealthy individual.
In fact, Illman himself highlighted that this initial deposit amount can go up to $3.8 million. Only Charles Leclerc, who is a close friend of Gasly, has the exemption from such conditions, given that he is a Monegasque citizen by birth.
However, Gasly isn’t alone. His former teammate and fellow Frenchman, Esteban Ocon, is also bound by the same French taxation law and can’t stay in Monaco. So, Ocon lives in Switzerland.
