Monte Carlo is an area in the central part of the principality of Monaco. Monte Carlo is located on the French Riviera in the central part of the principality of Monaco. It is considered a high-profile tax heaven, because of its personal and business taxation laws and policies, which are extremely soft in comparison to other parts of the world.
Tennis players choose to live in Monte Carlo because Monaco levies no income tax. That is why so many wealthy athletes choose to live in Monte Carlo. However, most tennis players are only registered in Monte Carlo, as most players are on tour all year round. In the off-season they aren’t in Monte Carlo either. Instead they go back to their real home with their families. So it is safe to say that most players only lives in Monte Carlo because of the economic benefits.
Monte Carlo = No Tax Paradise
Ever since 1869, Monte Carlo have been considered a tax paradise with their no levies on personal income for their residents. To become a resident of Monaco, you need to live in the principality for at least 6 months and one day of the year. However, most tennis player that are on tour all year around is spending much lesser time than 6 months in Monte Carlo.
Even though the income taxes are one of the lowest in the entire world, it is unbelievably expensive to live here. Actually, it had the worlds most expensive real estate market for several years. In 2012 the average cost per sqmetre was $58000. However, the players that live here most likely find it better to invest a ton of money and save taxes. But, if you consider the professional tennis players earnings, a $5 million invest in a house isn’t that much.
ATP Players In Monte Carlo
- Novak Djokovic
- Alexander Zverev
- Milos Raonic
- Marin Cillic
- Kevin Andersson
- David Goffin
- Grigor Dimitrov
- Gael Monfils
Life In Monte Carlo
The main reason for the tennis player to live in Monte Carlo is that it offers their residents no income tax. However, there are, of course other reason to live in Monte Carlo as well.
Monte Carlo as a destination itself is quite breathtaking. Located in the Mediterranean coast between the french and Italian riviera. Together with its azure blue waters contrasting the land, and the beautiful mountains as a backdrop, It is one of the most beautiful places on earth.
Monte Carlo is also blessed with an unbelievably good climate, offering over 300 sun days a year. The winter is very short and mild, while the summer is very long and sunny.
It can be very hot in the summer, however that is rarely a problem in Monte Carlo, as most of the luxurious apartments are either very close to the sea or has an own pool to cool down at.
Monte Carlo have one of the most expensive and luxurious real estates. The real estate is absolutely stunning, offering incredible views, and overall contributes to making Monte Carlo one of the best places to live at in the entire world for those who can afford it.
How Much Money Do Players Save Living In Monte Carlo?
The tennis players that lives in Monte Carlo have became extremely rich through money that they have primary earned through different tennis tournaments. The prize money for a professional tennis tournament differ a lot, but the average for winning a ATP tournament is €2 million.
One of the players that lives in Monte Carlo is Novak Djokovic. Lets say, Djokovic goes to the French Open and wins the tournament, then he will get around €2 million in prize money. Djokovic is from Serbia and if he is a resident there, he will need to pay 20% in taxes of those €2 million. Which means that he will pay €400 000 in taxes for the prize money that he won.
Instead of losing those €400 000, he moved to Monte Carlo and becomes a resident there. By doing that, he don’t need to pay any taxes due to Monte Carlos politics of no personal income tax. Djokovic can now keep his prize money for himself. So by moving to Monte Carlo, he saved €400 000 in only 1 tournament.
Lets take a look at Novak Djokovic total career earnings. He have a won €120 million in prize money in his career. If he payed taxes in his home country Serbia, he would of payed €30 million in taxes. If he was a resident in Monte Carlo during all those tournaments, he would of saved those €30 million. Is it worth it? For sure.
Tennis Paradise – Monte Carlo Masters
Monte Carlo is not just a no tax paradise, it is surely a tennis paradise as well. With all the tennis players living here, and especially with one of the biggest and most appreciated ATP tournaments in the world. The Monte Carlo-Masters, sponsored by Rolex. The central tennis court in Monte Carlo that you can see on the picture is undoubtedly the best located tennis court in the world.
The Monte Carlo-Masters is a ATP 1000 Tour Masters tournament, and it is the only tournament in the entire ATP tour where the players don’t have an mandatory commitment that they need to play. However, most tennis players choose to play here anyway. The tournament is played on clay and many players are playing in Monte Carlo to prepare for the French Open that usually is a month later.
Like many other clay tournaments, Rafael Nadal have dominated the Monte Carlo-masters, winning the title 11 times in his career. Most recently, In 2019 Fabio Fogini surprisingly won the tournament beating Rafael Nadal, becoming the first Italian to win the tournament in 60 years.
Most people go the conclusion that players are living here only to make as much money as possible. Since, there is no easier or better way to save money, than having 0% income tax. But, when you see Monte Carlo and where it’s positioned, I can’t think of a better place to live at.