F1 driver Lando Norris recently announced that he has picked up a flat in Monaco. In doing so, he now joins the likes of Lewis Hamilton, Max Verstappen, Charles Leclerc and Daniel Ricciardo. But the question remains - why do so many F1 stars choose to live in Monaco?
To understand this trend, we must look into some details of the Monégasque taxation structure.
F1 drivers earn in the millions, with stars like George Russell reportedly set to make a whopping $6.76 million in 2022. Monaco's taxation laws help protect large sums of money as it is a tax haven, i.e. a country or region where taxes are levied at an extremely low rate.
As per Investopedia.com, Monaco hasn't levied income tax on its residents since 1869. To be considered a resident of the principality, however, you have to live in Monaco for at least six months and one day of each year and must intend to stay longer than three months in a year. The annual Monaco Grand Prix aids drivers in fulfilling this part of their residency requirements.
A lack of income tax will help stars like Russell keep the full amount they earn through their salaries.
Although Monaco's taxation laws can be seen as the main reason F1 stars reside there, it is not the only one. Monaco is located almost in the bang center of Europe, making it convenient for drivers to travel around the continent for the various Grand Prix events. Furthermore, drivers can fulfill another part of their residency requirements by purchasing property in the wealthy principality.
McLaren F1 star Lando Norris announces move to Monaco
Lando Norris is the most recent F1 star to announce his move to Monaco. The young McLaren driver revealed his plans in an Instagram post in December to move to the principality, joining fellow drivers such as Max Verstappen and team-mate Daniel Ricciardo.
Norris claims he will be living in a flat in Monaco when he isn't at the McLaren factory or at a track somewhere around the world. The British driver will be leaving the UK, which hosts the McLaren factory, making the move a bold one. He told Motorsport.com:
“I just feel like I’m in a comfortable place at the minute to make this decision and spend the time to move over there. I can still see a lot of my friends, and my family are going to come over. So many things will remain exactly the same. It’s just that I’m based in a different place. Maybe I won’t get to play as much golf, which is probably the biggest downside.”
Lando Norris recently placed third in the F1 bosses' top ten drivers of the year list and will return with McLaren for the 2022 season.