Charles Leclerc enjoys a unique residency advantage in Monaco—a destination known as a tax haven for Formula 1 drivers. Unlike his peers, Leclerc was born and raised in this principality, eliminating the challenges others face to establish residency. Many F1 drivers, including Lewis Hamilton and Max Verstappen, have made Monaco their home to benefit from its financial perks. However, the path for these drivers is not as straightforward as one might think.
Monaco has attracted numerous F1 drivers and wealthy individuals due to its favorable tax policies. Besides monetary wealth, drivers must meet specific criteria to become residents. According to F1 photographer Kym Illman, drivers must deposit between $548,000 and $3.83 million as proof of their financial means to live in Monaco. Additionally, their economic activities must be based in the principality, ensuring that their ties to Monaco are substantive.
Kym Illman shared insights from a Monegasque public official on social media, explaining the conditions required for tax residency in Monaco. It is not enough for a driver to merely visit; they must establish personal and professional ties to the region. Illman noted that if a driver lives in Monaco, starts a business, or relocates their family there, they are more likely to qualify for residency benefits.
Despite these stringent requirements, Leclerc holds an inherent advantage. As a native Monegasque, he is exempt from the financial and bureaucratic hurdles others face. His deep-rooted connection to the country and its community allows him to enjoy the perks of citizenship without needing to prove his economic worth to the authorities.
One notable restriction for native Monegasques, including Leclerc, concerns the casino scene in Monaco. Although the city is famous for its casinos, these gambling venues are off-limits to individuals like Leclerc. The rule, established in 1865, aims to protect the financial interests of Monaco’s original citizens. This historical regulation remains in place to this day, preventing the local population from participating in casino gambling.
In Adam Hay-Nicholls’s biography of Leclerc, this casino restriction is highlighted as an effort to save Monaco’s royal family from financial ruin. While the luxurious allure of casinos might tempt rich visitors from around the world, Leclerc and other native residents abide by these enduring rules. Therefore, although Leclerc sees these vibrant casinos every day, he cannot partake in their activities.
The residency scenario for Charles Leclerc underscores the intertwining of personal heritage and Formula 1’s glamour. While his peers jump through hoops to secure Monegasque residency, Leclerc’s circumstances highlight a coveted benefit—already having a place in Monaco’s prestigious circle. Despite the casino restriction, Leclerc’s sense of belonging and permanent residency present a significant personal and professional asset in the world of Formula 1.
