Nearly half of the current F1 grid resides in Monaco, but tax breaks aren’t the only reason why drivers love living in the Principality.
Monaco is considered home to nearly half of the 20 drivers on the current F1 grid and Mercedes Team Principal Toto Wolff, but beyond the significant tax advantages, there are other reasons that attract them to live in the Principality.
Monaco is one of the smallest countries in the world with a total area of just over two square kilometers, only slightly larger than London’s Hyde Park. Yet, it is densely populated with buildings and hosts a population of nearly 40,000 people, a quarter of whom were born there, like Charles Leclerc, while a third are millionaires.
Despite its size, the city has several districts, each with a unique style. Monte Carlo is the most famous, but there are also La Moneghetti, Condamine, Fontvieille, Larvotto, and Monaco-Ville, and an average property in some of these areas can cost twice as much as those in London’s exclusive Mayfair.
Currently, out of the twenty F1 drivers, nine reside in Monaco: Charles Leclerc, Max Verstappen, Lewis Hamilton, Lando Norris, Nico Hulkenberg, Daniel Ricciardo, Valtteri Bottas, Alex Albon, and George Russell, who joined the list last year. The exact location of their homes is top secret, but occasionally fans get a glimpse into their daily lives, like Lando Norris in his iconic Fiat 500 Jolly or, more recently, Charles Leclerc walking the streets with his new puppy Leo.
Many former drivers also reside there, including Nico Rosberg, who spent most of his childhood here, David Coulthard, a resident since 1995 and owner of the Columbus Hotel until 2020, Jenson Button, Mika Hakkinen, Riccardo Patrese, Stoffel Vandoorne, Daniil Kvyat, Antonio Giovinazzi, and Paul di Resta.
So, what’s the appeal of living in Monaco?
Fitness
Many drivers have their own gym at home, but there are enough private gyms in town to avoid training alongside another F1 driver. Charles Leclerc, for example, goes to his local wellness center daily.
However, it’s the excellent climate combined with the superb nearby countryside that takes training to another level: many drivers regularly go cycling or running on trails or the winding roads along the hills or coast.
There are also many spas for relaxation, and many drivers engage in cryotherapy, where extreme cold is used to freeze and remove abnormal tissue. Charles Leclerc, for instance, regularly visits the Thermes Marins Monaco.
Lifestyle
Residential properties can be expensive, but an F1 driver’s salary allows for luxurious accommodations, most of which boast stunning views of the harbor’s sea, making it the perfect place to spend time between races.
Once upon a time, on-track rivalry implied an inability to forge friendships off the track, but many of today’s drivers get along quite well, and living so close can make life more sociable when they’re not traveling.
The dining scene in town, if you have a full wallet, is sublime, with a wide selection of Michelin-starred restaurants, including Le Louis XV – Alain Ducasse at the Hotel de Paris, La Table d’Antonio Salvatore au Rampoldi, and Pavyllon Monte-Carlo.
Many drivers also spend time on the Mediterranean Sea, with numerous small bays for jet skiing and not one, but two ports filled with yachts. For example, Leclerc has his own yacht and spends many days cruising along the 3.8 km coastline.
In the mountains behind the city, the roads are ideal for cycling and perfect for driving. Verstappen is believed to have a collection of exclusive supercars, including a £2 million Aston Martin Valkyrie.
Privacy and Security
It may seem strange, but Monaco offers F1 drivers a bit of normalcy! Unique privacy laws and strict restrictions for professional photographers, who need explicit written authorization from the government, allow drivers to move around undisturbed.
Security is also high: Monaco is often cited as one of the safest countries in the world. It is said that the police-to-population ratio is seven times higher than that of the UK and that there are closed-circuit cameras everywhere, monitoring every movement of people.
Logistics
The location of the Principality is ideal for the lifestyle of an F1 driver who travels frequently, being about 15 miles (24 km) from Nice airport, which has a vast network of private planes. There is also a heliport that can take them to their destination in seven minutes.
And when F1 arrives in town every year, naturally, drivers living in the Principality can enjoy the unique experience of returning to their apartments for the night and enjoying some home comforts during the race weekend.
MoneyGram Haas F1 Team driver Nico Hulkenberg spoke about the benefits of this opportunity, stating, “It’s a nice change from the normal routine. It’s a bit strange going home every night and between sessions, but it puts me at ease.”
The Climate
The climate is great all year round: mild and sunny in winter and warm but pleasant in summer, with plenty of places to cool off, such as air-conditioned apartments, private pools, or the crystal-clear waters of the Mediterranean Sea.
The area has its own microclimate with an average of over 300 days of sunshine a year, and in winter, temperatures rarely drop below 10 degrees Celsius, while summer temperatures hover around 30 degrees.
Tax Haven
Of course, we saved the real advantage for last. All the other elements mentioned contribute to ensuring a great lifestyle, but most of them can be enjoyed and experienced in many other places as well. The only truly rare aspect of living in Monaco is the tax benefits it offers.
Anyone moving must have a financial liquidity of half a million pounds just to apply for property, and to receive tax benefits, one must reside in the Principality for six months and one day every year.
Beyond these elements and the additional condition that French citizens do not receive tax benefits, the government imposes no income tax, wealth tax, local tax, property tax, or capital gains tax.
When Lando Norris moved to Monaco, he said he did it for “the reasons you probably expect” and explained, “It’s something that obviously many drivers tend to do, especially with the way racing works. You’ve seen it with many drivers, how quickly things can go downhill.”
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