Being a tax haven, Monaco has been a lucrative base for several athletes, especially F1 drivers, who have permanently moved to the Principality. There are many advantages to living in Monaco for the racing stars.
Being a central point in Europe, it is that much easier to travel from Monaco to most of the races on the continent. The Principality offers a luxurious lifestyle to suit their star status.
The biggest plus, of course, is money. 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 don’t reside in Monaco. The Alpine driver instead lives in Milan, and there is a reason he has opted for Italy.
Being a French citizen, Gasly cannot enjoy the tax benefits of moving 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 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,” said Illman.
So, with taxes on the cards, Gasly may not be able to afford to live in Monaco despite his 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 could 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 French tax rates, it won’t make financial sense for him.
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Drivers like Lewis Hamilton and Max Verstappen earn north of $60 million per year in salaries, excluding bonuses. Gasly is yet to reach that stature in F1.
Besides, he will also have to pay at least a considerable amount of money as deposit — around at least $548k — to be eligible to live in Monaco as a wealthy individual.
Illman 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 this rule, since 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. Ocon lives in Switzerland.
