Monaco is a tax haven for F1 drivers but strange rule means some LOSE out

Formula 1 heads to Monaco this weekend as the European triple-header continues following a showstopping race in Imola last time out.

Reigning champion Max Verstappen returned to the top of the results table in Italy, securing his first win since the Japanese GP on Red Bull's 400th F1 race weekend.

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The Dutchman, like over half of the 2025 grid, resides in Monaco when he's not busy travelling all over the globe to meet the demands of the sport's 24-race calendar, and will return to the familiar environment this weekend to race in the principality.

Last year, home hero Charles Leclerc finally broke the so-called 'Monaco curse' which could have been hampering his chances of achieving his childhood dream of winning the iconic motorsport event on the very streets he grew up on.

After a disappointing start to Ferrari's 2025 campaign however, the Monegasque driver will need to pull out all the stops on Saturday to gain the vital pole position which often leads to a victory around the unforgiving Monte Carlo track.

Ahead of this weekend's 2025 Monaco GP, GPFans revisits the number of stars who could potentially consider this a 'home race', and the one bizarre rule which prevents some from moving to the motorsport hub.

Why don't all F1 drivers live in Monaco?

Ferrari star Leclerc holds a Monegasque passport meaning he does not need to worry about meeting the requirements that many F1 drivers do when considering the move which requires them to conduct their personal life and economic activity in Monaco.

From this year's grid, 12 drivers reside in Monaco, including McLaren star Lando Norris and his former team-mate Carlos Sainz, who were pictured meeting up earlier this week for a relaxing dinner date ahead of the 2025 race weekend.

Much of the grid are often spotted socialising, training and driving their impressive supercars around the streets of Monaco, with the principality proving an attractive destination for motorsport stars, mostly because of the benefits of the country's tax system.

Monaco residents are not subject to personal income tax so the 12 stars of the grid who call the luxury location home are not required to pay tax on their salary or fruitful sponsorships.

As the highest earner on the grid, one star who enjoys those benefits is four-time champion Verstappen, who moved to Monaco from the Netherlands just one day after his 18th birthday.

Seven-time champion Lewis Hamilton tops the F1 driver rich list out of those on the current grid, recently coming in 324th on the Sunday Times Rich List which names the top 1000 earners who reside in the UK.

The Ferrari star never stays in one place for too long thanks to the hectic schedule of the sport and as well as London, also owns properties in Colorado, LA, New York and of course, Monaco.

So if Monaco is catered to a luxury lifestyle why don't all F1 drivers reside there? Of course, the destination of each star's home is entirely a personal choice- some may choose to remain close to home such as newly promoted Alpine driver Franco Colapinto. Alternatively, some may wish to reside within a reasonable distance of their team's HQ such as RB star Isack Hadjar.

The 20-year-old races under the French flag but holds dual French and Algerian citizenship and reportedly splits his time off between Paris and the Italian city of Faenza.

The other two French drivers on the grid are Esteban Ocon and Pierre Gasly who grew up in Normandy just a 20-minute drive away from each other.

As the former team-mates both hold French passports they would not benefit from the tax savings many other drivers do and although this doesn't prevent them from residing in Monaco, they have both chosen to spend their time away from the track outside of the principality.

They could both live in Monaco but if they chose to, neither could claim tax-free status as a result of a bilateral treaty between Monaco and the French government which means French citizens remain taxable on their income even if they have moved to Monaco.

READ MORE: F1 Imola Grand Prix 2025 results: Final classification with penalties applied

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