Do you know that the government of Monte Carlo, the tiny city-state surrounded on three sides by France and on one side by the Mediterranean Sea, doesn’t much care about taxes? They don’t collect income taxes from non-citizens either. But why do tennis players live in Monte Carlo? Is being tax-free the only reason? Let’s know the true reasons with interesting facts.
Monte Carlo is a central region in Monaco. It is tax heaven for tennis players. The top players all around the world earn a handsome amount of money through tournaments. However, several countries cut taxes out of their incomes. This is the main reason why tennis players live in Monte Carlo (the city of Monaco).
Monte Carlo is a region that doesn’t apply any taxes to its citizens and non-citizens as well. Therefore, most famous tennis players prefer living in Monte Carlo.
Tennis players prefer to live in Monte Carlo because Monte Carlo doesn’t impose taxes on its residents and non-residents as well. It means tax laws are soft in Monte Carlo which helps tennis players save huge money, do business, and enjoy many financial benefits.
This allows the tennis players to avail themselves of a fair few tax advantages. Although some players still prefer staying in other countries such as Switzerland.
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Why Do Tennis Players Live In Monte Carlo?
Tax havens like Monte Carlo do not charge any taxes on their residents. This is why most wealthy people including tennis players choose to live in Monte Carlo. This is the complementary reason why tennis players love to live in Monte Carlo.
Monte Carlo has its rules and policies for taxation and it does not impose taxes on its citizens or non-citizens. When these tennis players are on holiday they go back to their town.
Furthermore, they just live there for the economic benefits they avail themselves. The tennis players mostly stay on tours in different countries for the whole year. But when they come back with winnings and cash, they like to live in a place where they are not charged with heavy taxes. That’s why they prefer living in Monte Carlo.
Besides this, there are so many other reasons to live in Monte Carlo like life is full of glamour there. Let’s see some other compelling reasons.
Top 11 Reasons To Live In Monte Carlo
The people who live in Monte Carlo enjoy a number of benefits. There are several reasons to live in Monte Carlo and settle there.
Additionally, Monte Carlo is a blessed place with its charming beauty. It is located on the Mediterranean coast. With its eye-catching views, it easily attracts travelers. Moreover, the people living here are very beautiful.
The more benefits Monaco gives the more the reasons are to live there. Some of the benefits Monaco provides are in the list below.
- No Income Taxes
- No Wealth Tax
- High-security Systems
- Best Health Cares
- Good Schooling Systems
- English is Spoken
- Friendly Environment for Businesses
- Frequent Cultural Activities (Music, Dancing)
- Beautiful Places to Visit Including Mountains and Ski Resorts in the near places
- Regular International Forums
- Sports Events Including the Monte Carlo Tennis Tournament
How much a tennis player can save while living in Monte Carlo?
The players who choose to live in Monte Carlo have earned a lot in their careers. Just because they do not have to pay taxes while living in Monaco, therefore they have gathered huge wealth.
Tennis players usually earn nice amounts through different tournaments. Although it is not clear what is their salary. However, the average amount the tennis players earn through the ATP tournaments is €2 Million.
This is no doubt a very reasonable amount that is provided to the players. The payments of each tournament are not fixed it can vary.
One of the tennis players Novak Djokovic is Monaco’s resident. Let’s say he becomes a part of the French Open tournament and wins the monetary prize of €2 Million.
He will have to pay 20% for taxes out of that money prize. To avoid paying the taxes players like him move to Monaco.
By doing so, they can enjoy not paying taxes. This is the political policy of Monaco that does not let any individual pay taxes.
This is why the residents of Monaco enjoy many benefits of being residents. Hence the players prefer settling in Monaco and becoming wealthy.
Let’s go through the achievements and winning prizes of Novan. He is a successful player that belongs to Serbis, his homeland.
During his tennis career, he won over €120 Million money prizes. If he was not a resident of Monaco, he would have to pay €30 Million in taxes being a resident of Serbia.
Hence, this proves how worth is it to live in Monte Carlo and take residence there. A large number of top players live in Monaco and chill out.
Top 8 Tennis Players Living In Monte Carlo
There are a number of successful players living in Monte Carlo. Some of the famous names are mentioned below.
- Novak Djokovic
- Alexander Zverev
- Milos Raonic
- Marin Cillic
- Kevin Anderson
- David Goffin
- Grigor Dimitrov
- Gael Monfils
Monte Carlo is not just a tax paradise, it is a tennis paradise as well. Monte Carlo is also famous for its ATP tennis tournaments that take place here.
Monte Carlo also has some of the best tennis courts with amazing features.
Life in Monte Carlo – Expensive and Luxurious One
Monte Carlo is full of mesmerizing and breathtaking visiting places. Due to its charming places, the lifestyle of Monaco’s residents becomes full of life and dazzle.
Apart from being called a tax haven, Monte Carlo is also known for its spectacular beauty and nature.
People also live in Monte Carlo for its glory. The weather in Monte Carlo stays sunny almost all year. However, the summers are long there and the sun is bright and sparkly.
It is an unbelievably admiring and relaxing place on earth. The hot weather can be extremely hot but the luxurious residences are mostly near the sea area.
Therefore, it is not a big deal to bear the hot weather there. There are swimming pools in their apartments and they can relax and cool down.
Monte Carlo is one of the best living places offering the best real estate. Its amazing view attracts people from all around the world to live here. This charming city is for those who can afford it. The average cost of living in Monaco (Monte Carlo) is €5,000 or $5,600 for a family of 4 people.
Monte Carlo – A Tennis Paradise
Monte Carlo offers so many sports events including tennis tournaments at a professional level. This is the reason why Monte Carlo is also called a Tennis Paradise.
Monaco has some of the best professional tennis courts in Monte Carlo. These courts are designed and made according to tennis rules and sophistication.
The well-known tennis tournaments appreciated by ATP are also played here. Most of the players have achieved the top rankings by participating in these tournaments as well.
The Monte Carlo Masters is a tournament that is appreciated by ATP. It is played on clay. A majority of players participate in this tournament to prepare for the French Open.
Why is Roger Federer not living in Monte Carlo?
Did you notice that among all of the listed names above of the tennis players, and residents in Monte Carlo, the name of the famous tennis player Roger Federer is missing?
He is one of the few top-ranking players who did not leave their homelands and moved to Monaco. He resides with his family in Switzerland.
Moreover, as we talked about earlier, there are several players who live in Monaco for no taxation benefits especially. And the players, who do not live in Monte Carlo, have to pay 20% tax on their prize money which means millions of euros.
However, according to Roger,
“He stayed in Switzerland and paid his taxes fairly. He says that he did a fair act with his country”
He has now become an ambassador of Switzerland and put in his all efforts and has not leaving his homeland. It is also a mark of his patriotism that he stayed in his country no matter what! He became an advocate for tourism. He managed all by himself.
Why Monte Carlo Is Considered a Tax Haven?
Monaco is considered a Tax haven. This is because it does not levy taxes on its natives. This is according to their political policies and country rules.
The laws and policies are completely in favor of the residents of Monaco. The people who live here do not have to pay taxes.
They enjoy their incomes free from taxes. They are wealthy and have luxurious lives. Moreover, the top-ranking tennis players also like to settle here. Hence, this allows the players to become wealthy and live peacefully.
Usually, when people hear the name Monaco the next word that comes to their minds is a tax haven. When we see tennis players from different countries reach out to Monaco to live here. We think that they are settling here because the country does not levy taxes on the people here. It is true!
The obvious reason for players living in Monte Carlo is financial benefits. Many top players including Novak Djokovic live there.
However, people also move in here because it offers some astounding views and benefits. In addition, the people who are well off and can easily afford the luxurious life in Monaco can move in here without thinking once.
What do you think about tennis players living in Monte Carlo to avoid taxes? Do call it patriotism to their country? What would you do in this case? Let us know what you think in the comments section.
Frequently Asked Questions
1. Why do tennis players live in Monte Carlo?
Monte Carlo is home to a lot of wealthy individuals, as well as being the headquarters for many companies and organizations. A huge portion of the population comes from the stock market. This means tennis players will have a lot of stuff around them to distract them, which is great for training, practice and business as well (if they want to be part of a business).
2. How does Monaco survive without taxes?
Monaco is a country that exists solely on tourism and other businesses. Monaco has no regular tax income, but rather depends upon companies to host events, which is the main source of revenue for Monaco.
3. How do pro tennis players pay taxes?
The answer is complicated. Many pro tennis players will be exempt from paying taxes because they are considered to have a reasonable expectation of making it to the top 20 and being in the world tennis rankings for a minimum of two years.
Pro tennis players who are taxed on their prize money and endorsements pay tax in the jurisdiction where they earned that income.
Hey, it’s 32 years old Robert Dexter here, a huge fan of Roger Federer. I love tennis since the age of 12. I write about tennis whenever possible. I have keen interest in equipment and the technicalities of tennis. Other than tennis, I love to post new stories on Instagram, read books and cooking.