Monaco Grand Prix: The F1 race like no other – worth €100 MILLION plus much more

A fleet of superyachts off the shore at Monaco — Photo: © LAT Images

Monaco Grand Prix

Inside Monaco’s wealth: The F1 race like no other – worth €100 MILLION plus much more

The Monaco Grand Prix is one of the most luxurious sporting events in the world – and it's worth a pretty penny too!

Matthew Hobkinson Lead Editor

F1 Editor & Journalist

Sunday 28 May 2023 07:57

The Monaco Grand Prix is unlike any other on the Formula 1 calendar.

A historic track with dangerously narrow streets, yet often much of the fanfare surrounding the weekend is away from the racing itself.

Superyachts, casinos and luxury cars make it feel more ‘James Bond film set’ and a little less ‘F1 race’ – Aston Martin will certainly hope that Fernando Alonso can drive a la Bond this weekend.

But where is the money in Monaco? Why is it so wealthy? Who lives here?

Here is all you need to know about the most lavish F1 race on the calendar...

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Why is Monaco so wealthy?

To put it simply: taxes. There is no income tax, capital gains or real estate tax.

This low tax rate has attracted the uber-wealthy to the region. Beyond the financial incentives, the year-round mild climate, central European location and high-profile events make it somewhat of a playground for those willing to splash the cash.

Only Value Added Tax (VAT) being charged at a standard 20 per cent rate. Yet for some goods and services such as hotels, restaurants and water – a reduced VAT rate of 10 per cent is charged instead.

So, who lives there?

A whole host of current F1 drivers reside in Monaco. Lewis Hamilton, Max Verstappen, Lando Norris, Sergio Perez, Valtteri Bottas, Alex Albon, Nyck de Vries, Nico Hulkenberg and of course not just a resident, but a citizen, Charles Leclerc.

Lewis Hamilton soaking in the sun ahead of the Monaco Grand Prix

Other celebrities from all walks of live also live there, such as: Bono, Novak Djokovic, Ringo Starr and Shirley Bassey.

How much does it cost to live there?

With space at a premium, a reported average price of €50,000 (£43,000) per square metre makes Monaco home to the most expensive real estate in the world.

And for those wanting to visit for a race weekend, things don’t get any better.

Monaco’s Port Hercule has 760 berths for yachts to moor up in, yet the average €1,200 price per day rockets up to €3,500 – with the most expensive spots costing an eye-watering €100,000 for five days.

Monaco is no stranger to the rich and famous, especially during a race weekend

For those without a grandstand ticket, it is possible to watch the race from a private terrace overlooking the track. A ticket for Saturday and Sunday in these exclusive vantage points could set you back as much €5,000.

How much money goes through Monaco on a race weekend?

Monaco's local economy is boosted by a reported €102million over the course of a race week - with a staggering €68million of that being spent in the final four days alone.

Through its hotels, yachting berths, nightclubs, casinos, restaurants and anything else guests can find to splash their cash on; Monaco receives a seismic boost to their finances during a race week.

And the upside for the hosts - they hardly pay a penny for the privilege of putting on the event.

Although the exact fee that Monaco pay to hold the race is unknown - and even rumoured to be zero by some - it is thought that they pay just 10 per cent of the cost incurred by other locations.

Places such as Singapore, Abu Dhabi or Austin pay in the region of €23million to €32million to host an F1 race, while Monaco's €100million-plus economic boost is virtually theirs to keep in its entirety.

Is Monte Carlo a part of Monaco?

Yes, while Monaco itself is the entire principality, Monte Carlo is one area of Monaco.

Monaco has four traditional quarters: Monaco-Ville, Fontvieille, La Condamine and finally the most famous of them all – Monte Carlo – home to the world-famous Monte Carlo Casino.

For a sport that is no stranger to luxury, F1 certainly doesn’t get much more luxurious than race weekend in Monaco.