Why do Tennis Players Live In Monte Carlo?
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 high-profile tax heaven, because of its personal and business tax 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 live in Monte Carlo because of the economic benefits.
Monte Carlo = No Tax Paradise
Ever since 1869, Monte Carlo has been considered a tax paradise with no levies on personal income for its 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 is on tour all year round 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 world’s 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 player’s earnings, a $5 million investment 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 reasons to live in Monte Carlo as well.
Monte Carlo as a destination itself is quite breathtaking. Located on 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 sunny 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 their own pool to cool down at.
Monte Carlo has 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 in the entire world for those who can afford it.
How Much Money Do Players Save Living In Monte Carlo?
The tennis players that live in Monte Carlo have become extremely rich through money that they have primarily earned through different tennis tournaments. The prize money for a professional tennis tournament differs a lot, but the average for winning an ATP tournament is €2 million.
One of the players that live in Monte Carlo is Novak Djokovic. Let’s 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. This 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 doesn’t need to pay any taxes due to Monte Carlos’s 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.
Let’s take a look at Novak Djokovic’s total career earnings. He has won over €120 million in prize money in his career. If he paid taxes in his home country Serbia, he would have paid €30 million in taxes. If he was a resident in Monte Carlo during all those tournaments, he would have saved €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 in the picture is undoubtedly the best-located tennis court in the world.
The Monte Carlo-Masters is an ATP 1000 Tour Masters tournament, and it is the only tournament in the entire ATP tour where the players don’t have a 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 has 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.
Final Thoughts
Most people go to 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.
You can also read
- Why Are Tennis Players Wearing The Same Outfit?
- What Are the Various Levels of Tennis Players?
- What Surfaces Are The 4 Grand Slams Played On?
- Why Female Tennis Players Wear Skirts
- How To Become a Tennis Coach
